T-Mobile Shakes Up Pricing Sans Unlimited Data
New rate plans offer a variety of data caps, but slow data speeds once the max is reached instead of charging overages
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.
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— Sarah Reedy, Senior Reporter, Light Reading Mobile
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