Optical/IP Networks

T-Mobile Shakes Up Pricing Sans Unlimited Data

T-Mobile US Inc. revamped its prepaid and contract pricing plans Monday, as expected, using throttling to limit users who go over the new data caps.

T-Mobile's new contracted single-line and family plans have no data overages, but offer choices in data caps, including 200 MB for $69.99 per month, 2 GB at $79.99 (announced last month), 5 GB at $89.99 or 10 GB for $119.99 per month.

For the family, T-Mobile now offers unlimited voice minutes, text messages and unlimited data capped at 2 GB for $139.99 per month for two lines.

On the prepaid front, Magenta introduced two new unlimited, prepaid plans starting at $50 per month for 100 MB of data or $70 per month for 5 GB of data. These are in addition to its $30 Talk and Text plan with 30 MB of data.

On all of its plans, once a customer reaches the data ceiling, speeds are slowed for the rest of the month.

Why this matters
The new pricing structure isn't a surprise thanks to several leaks, but it's notable given that T-Mobile and AT&T Inc. (NYSE: T) say they plan to honor T-Mo's subscribers' existing rate plans if the acquisition is approved. In a recent Congressional hearing, AT&T CEO Randall Stephenson said that existing T-Mobile subs will get to keep their current rate plans even if they purchase a new handset, while AT&T customers and any new customers won't be given those options. (See AT&T Takes the Oath on T-Mobile Merger.)

But, Stephenson doesn't have any say on what T-Mobile does to its plans before the merger is official. And it looks like, until that day, T-Mobile will continue to do what it can to compete with its future parent.

For more
Pricing is just one thing that's set to be shaken up at T-Mobile. Read on for more.

— Sarah Reedy, Senior Reporter, Light Reading Mobile

sarahthomas1011 12/5/2012 | 5:04:43 PM
re: T-Mobile Shakes Up Pricing Sans Unlimited Data

Consumers may be unhappy that T-Mobile isn't offering unlimited data pricing, but I think they made the right move in throttling speeds instead of charging more or cutting off service.

sarahthomas1011 12/5/2012 | 5:04:42 PM
re: T-Mobile Shakes Up Pricing Sans Unlimited Data

Yeah, the use of unlimited* was confusing. I guess technically is it unlimited though since it never goes away, just slows down -- but that's a stretch.

Michelle Donegan 12/5/2012 | 5:04:42 PM
re: T-Mobile Shakes Up Pricing Sans Unlimited Data

I think slowing the network down, rather than cutting off data service or heaping on extra charges is best too. Also good would be to give customers an option to buy more data when they approach their data cap, like a top-up, if they want to.


Side note: I was surprised, and amused, by how many times the word "unlimited" was used in T-Mobile's press release about the new data caps. Are they hoping that some customers will think they can still get an unlmited data service? Or am I missing something?

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