Keep up with the latest developments and legal issues in the telecommunications and emerging technology sectors, with exclusive access to a comprehensive collection of telecommunications law news,...
By Scott Moritz
July 14 — T-Mobile US Inc. is cutting prices and increasing data allocations on family plans to challenge larger rivals including Verizon Communications Inc.
For families of two, T-Mobile is offering 10 gigabytes of data to each person for a total of $100, with each additional line costing $20 more, according to a statement. For families of four that sign up through Labor Day, the carrier is offering the fourth line for free, bringing the total to $120. A Verizon plan that includes 40 gigabytes of data would cost $300 plus an additional $60 in access charges for four phones.
T-Mobile's price cut, like its announcement last week to add service in Canada and Mexico to its Simple Choice plan, is aimed at gaining customers and overtaking Sprint Corp. as the third-largest U.S. wireless carrier. Offers including free music streaming and rollover data credits helped T-Mobile gain 2.1 million customers last quarter and put pressure on AT&T Inc. and Verizon to follow suit.
With the new offer, T-Mobile eliminates its two-person, $100 a month unlimited data plan. Verizon, which moved away from unlimited data plans three years ago, was one of the first carriers to introduce family shared-data options.
T-Mobile's 10-gigabyte, per-person offer is the lowest- priced plan of the top four carriers, according to Bloomberg Intelligence. Yet that amount of data is almost four times the 2.4 gigabyte average monthly usage of mobile customers in North America this year, according to ABI Research.
"Our plans match the way customers use wireless service," said Debi Lewis, a Verizon spokeswoman. "Sharing, not only among family members but across devices, is the way wireless works today."
Shares of T-Mobile gained 0.5 percent to $39.44 at the close in New York. They have risen 46 percent this year.
To contact the reporter on this story: Scott Moritz in New York at +1-212-617-5460 or email@example.com
To contact the editors responsible for this story: Cecile Daurat at +1-302-661-7607 or firstname.lastname@example.org; Lisa Wolfson, Paul Barbagallo
© 2015 Bloomberg L.P. All rights reserved. Used with permission.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)