T-Mobile US is set to boost data buckets for multiline accounts, but is doing away with the unlimited data option
T-Mobile US announced a new family plan that continues to eschew shared data models adopted by rivals, and also signals the continuing marginalization of unlimited data plans.
The carrier said that beginning July 15, it will offer a new family plan with each line having access to a minimum of 10 gigabytes of data. The plan starts at $100 for two lines of service, with each line receiving unlimited voice calling, messaging and 10 GB of data. A third line with the same access can be added for $20 per month, while a fourth line can be added for free through Sept. 7.
That results in four lines with each having access to 10 GB of data for $120 per month. Each line also includes T-Mobile US’ international roaming options, its recently announced North America roaming and calling option, access to the carrier’s streaming music service and its Data Stash program. Customers can push the available data bucket to 20 GB per line for an additional $10 per month, per line.
The new plans will initially be available through T-Mobile US retail stores and telesales, with online activation scheduled for the coming weeks. All current and new customers are eligible to sign up for the new plan.
T-Mobile US’ current family plans, which are set to expire today, include a two-line offer for $100 per month that includes unlimited voice calling, messaging and data, with each additional unlimited data line priced at $40 per month. The carrier also offers family plans with buckets of data beginning at $100 per month for four lines that include 2.5 GB of high-speed data per line; 5 GB of high-speed data per line for $180 per month, which also includes Data Stash; or $220 per month for unlimited data across the four lines.
The unlimited data offer does limit hot spot usage to just 7 GB of on-network tethering per month, while the new plans allow for all data in a bucket to be used for tethering. T-Mobile US also notes in its terms and conditions that unlimited data customers will have their data usage “de-prioritized” compared to other users “at locations and times when competing network demands occur, resulting in relatively slower speeds” once they hit 21 GB of data usage per month.
T-Mobile US last month updated its JUMP on Demand offer and a lower monthly price point on the Apple iPhone 6 16 GB. The carrier said its new JUMP program allows customers to upgrade their device up to three times per year on “select” new devices at no additional charge, and is an update to its initial JUMP program announced in 2013.
T-Mobile US is actively comparing the new offer to Verizon Wireless’ current promotion of 10 GB of shared data priced at $80 per month, with each line charged a $15 access fee. T-Mobile US notes that that results in a four-line charge of $140 per month to share 10 GB of data. A similar data bucket with 40 GB of shared data across four lines currently runs $360 per month.
Sprint earlier this year altered its Family Share Pack plans to include 12 GB of shared data for $90 per month. The bucket can be shared by up to 10 lines, with Sprint not charging a per-line fee through the end of March 2016, at which point each tablet will be charged $10 per month, each smartphone $15 per month and each mobile broadband device $20 per month. Sprint is also promoting a five-line plan that includes 20 GB of shared data for $100 per month for the first year, with the per-line access fees waived as part of the promotion.
T-Mobile US last week announced it added 2.1 million net connections during the second quarter, putting pressure on rivals as they begin to announce results in the coming weeks.
However, there remains concern that T-Mobile US’ rampant growth has so far not resulted in a significant financial return as the carrier continues to post net financial losses. Those results have seen falling average revenue per user and increased customer acquisition costs tied to its promotional efforts continuing to offset its robust growth. T-Mobile US – and other operators – have noted that while traditional ARPU is under pressure, transitioning from device subsidies to monthly payment models have actually increased the amount of money consumers are paying each month.
Analysts noted that T-Mobile US’ latest promotion could put pressure on average revenue per user generated from family plans, but countered that those customers typically cost less to procure and tend to generate lower churn levels.
End of unlimited data
T-Mobile US is not offering unlimited data as part of the new family plans, in a move that continues the marginalization of unlimited data plans. The carrier does continue to offer the option for single-line accounts, but does restrict network speeds at certain times.
Verizon Wireless and AT&T Mobility have long since stopped offering unlimited data options to new customers, with AT&T recently being hit with a $100 million fine from the Federal Communications Commission for misleading consumers regarding their “unlimited” data usage. Sprint continues to offer some options for single line plans – though at increased prices – and for multiline plans through a partnership with retailer Best Buy.
Analysts have been increasingly predicting the death of unlimited data services from mobile operators citing costs with supporting such services.
“Simply put, the operators cannot afford the network traffic associated with a truly unlimited rate plan in the era of LTE,” noted Iain Gillott, president and founder of IGR, in a recent Analyst Angle column for RCR Wireless News. “Third-generation data rates are, of course, much lower and hence it took a longer time for a user to rack up a large usage tab. But with LTE and an unlimited plan, streaming Netflix and Hulu all day long is a reality and is done at the expense of the other users on the network. No one can afford to support this for long, even those operators that officially still offer unlimited. While they may say their networks are fine today, this will not last: The growth in usage is too great.”
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