T-Mobile New Phone Plan Strategy
No more Ms. nice girl in pink, now with leather black and pink leather pants is one of the new changes with T-mobile. The phone carrier has decided to ditch the nice girl in the pretty pink dresses to a more aggressive approach in their marketing and phone plans. The new contract free-plans will start at $50 unlimited talk, text, and data (500MB of which is 4G). They’re also notably simpler than competing plans. “When you choose a T-Mobile rate plan, you get unlimited everything: no caps, no overages, no bill shock, only one rate plan,” said T-Mobile chief executive John Legere at a low key press conference in New York. “We call it the simple choice, and it’s obvious.”
The strategy will allow customers to get away from signing up a 2 year phone contract and also be able to add a second line to their T-Mobile plan for an additional $30 and additional lines for $10 each. The plans also include tethering at no extra cost (though it’s data limited on the $20 unlimited high-speed data account). In addition, T-Mobile is going to have customers purchase phones at full-cost or split up the cost in your monthly bill. With its base plan, plus $20 a month to pay off a device, T-Mobile says you’ll save $1,060 over two years when compared to AT&T’s plan.
Finally, after many years of waiting T-mobile will finally offer the iPhone 5. Customers will be able to purchase it for $99 starting on April 12 (the remaining cost is covered by an extra $20 on your monthly bill for 24 months). Additionally, he noted that Apple added some new technology to T-Mobile’s iPhone 5 and T-mobile is capable to LTE networks, HSPA+ 42 Mbps, and other HSPA networks. This means that T-Mobile’s iPhone will be far faster than the competition when outside of LTE coverage. In comparison, Verizon users get stuck with its slow 3G network when they drop off LTE.
“This is just a start, we’re going to be doing a lot of things … it’ll be very direct, very in your face,” Legere continues to say. “The message is we’re not just another phone company — we’re about changing this business. It’s not self-serving, it’s about customers. Customers don’t need another AT&T, customers need someone to stop acting like AT&T.” This new strategy is suppose to give other companies enough competition that they might change their own contract policies.
As Legere addressed the Q&A portion of the event, T-Mobile’s executives deflected the notion that it’s being unclear about data throttling. He tried to focus on the entire rate plans see the same 4G speeds up until their posted limits (the base $50 plan tops out at 500MB, while the $60 plan tops out at 2.5GB). The $70 fully unlimited 4G data plan won’t be throttled unless it inhibits the fair access for another customer. One of the T-Mobile executives noted that the company already has unlimited customers using more than 50GB per month who don’t get throttled.
With this new strategy T-mobile has evaluated the performance of their 4-G network and the need of their customers. Will this new strategy help them to get new customers, or have people switch from other customers? What reaction will the phone companies have depending if this strategy actually works? Will other phone companies have to change their contract plans as well?
Published by Rosa Rendon
Read more at,T-Mobile’sbold new no-contract strategy: $99 iPhone 5, simple plans, more LTE