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T-Mobile Tosses Data Caps & Speed Limits

T-Mobile US Inc. is revamping its mobile data plans to compete against AT&T Inc. (NYSE: T) and Verizon Wireless and offer an unlimited option against Sprint Corp. (NYSE: S) and MetroPCS Inc. (NYSE: PCS).

The operator said Tuesday that it will offer "a truly unlimited nationwide 4G data plan" to new and existing monthly customers. T-Mobile states that there are "no data caps" and "no speed limits" on the new offerings. Since October 2010, T-Mobile has added data speed throttling to customers who hit 5GB on their "unlimited" plan.

If you're on T-Mobile's "Classic" subsidized smartphone contract the new data plan will cost you $30 a month. If you've bought your phone outright or brought another model to T-Mobile's network, the new plan will cost $20 a month under the "Value" contract.

This means that unlimited talk, text and data under T-Mobile's classic plan will cost $89.99 a month.

Why this matters
There's now a clear split between the top four U.S. mobile operators. AT&T and Verizon are pushing shared data buckets with multiple price levels for various data limits. Sprint and T-Mobile are now promoting competing unlimited data plans.

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— Dan Jones, Site Editor, Light Reading Mobile

joset01 12/5/2012 | 5:23:11 PM
re: T-Mobile Tosses Data Caps & Speed Limits

The stage is set for a shared bucket vs. unlimited buffet showdown then. Will this help stop the customer losses at T-Mobile? Will people switch if they can get unlimited?

sarahthomas1011 12/5/2012 | 5:23:10 PM
re: T-Mobile Tosses Data Caps & Speed Limits

I think it may hurt their financials, but it was a really smart move on their part. Unlimited is a big differentiator. Could hurt Sprint.

joset01 12/5/2012 | 5:23:09 PM
re: T-Mobile Tosses Data Caps & Speed Limits

Will it really hurt their financials though, 5GB is a more challenging cap to break than say 2GB, I bet they are gambling that most customers still won't go over that.

sarahthomas1011 12/5/2012 | 5:23:09 PM
re: T-Mobile Tosses Data Caps & Speed Limits

True, but I think consumers still just like the idea of unlimited, even if they're nowhere close to hitting it. I bet they put a lot of marketing dollars behind this unlimited push too.

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