T-Mobile ‘Un-carrier X’ announcement includes free video streaming, rate plan changes
T-Mobile US continued its assault on mobile industry norms, announcing it will provide customers on higher-tiered data plans with unlimited access to a handful of streaming-video services. The announcement came as part of the carrier’s Los Angeles-based “Un-carrier X” event.
The latest move states that beginning Nov. 15, customers on the carrier’s Simple Choice postpaid plans with data buckets of at least 3 gigabytes per month can stream video content via their cellular connection from their subscriptions to Crackle, Encore, ESPN, Fox Sports, Fox Sports Go, HBO Now, HBO Go, Hulu, MLB, Movieplex, NBC Sports, Netflix, Sling TV, Sling Box, Showtime, Starz, T-Mobile TV, Univision Deportes, Ustream, Vessel, Vevo and Vudu, as well as the recently launched Go90 service from Verizon Wireless and AT&T’s DirecTV streaming service. That streamed content will not count against a customer’s data bucket and is included at no additional charge.
The service is available through T-Mobile US’ Binge On platform, which the carrier said is open to any streaming-content provider meeting technical requirements. Those requirements include a limitation on the quality of the stream to what T-Mobile US claims is “DVD quality” of at least 480p resolution. It was noted that Google’s YouTube platform does not currently adhere to the platform’s technical requirements.
Customers can control whether they want to limit their video quality to those requirements by controlling the Binge On platform, though they are only able to refrain from dipping into their data allotment if the Binge On platform is enabled on their device.
Customers on data plans of less than 3 GB, which are currently the data buckets provided at no additional charge on the carrier’s Simple Choice rate plans, will have data from those streaming services deducted from their data buckets. T-Mobile US claims the Binge On technology provides a three-times improvement in network capacity, noting consumers watching video content not part of the free package will be able to consume three times as much content for the same allotment of data.
T-Mobile US CEO John Legere said the video offering advances the carrier’s previously launched Music Freedom program that allows customers to stream music programming from dozens of streaming-content providers without touching their data buckets.
Analysts expressed some caution on the news, noting T-Mobile US could be inviting network congestion issues.
“We do have concerns as to what such usage could do to [T-Mobile US’] longer-term network capacity,” said Wells Fargo Securities senior analyst Jennifer Fritzsche, in a research note. “We hate to say it, but we have seen versions of this trend before. In our view, if customer usage soars, the benefits in terms of customer adds and lower churn could be offset if the network does not live up to expectations.”
Simple Choice changes
As part of the event, T-Mobile US also altered its Simple Choice family plans. The new plans, which take effect on Nov. 15, will provide customers with 6 GB of data per line as opposed to the currently available 10 GB of data per line, and is launching with the same four-line promotion currently being offered that provides each line with 10 GB of data at the $120 per month price point.
T-Mobile US used the Binge On platform as part of the reasoning for cutting the data buckets, explaining customers will now be able to stream video content without touching that data bucket as well as garner more efficient streaming for those video providers not part of the platform.
The carrier also doubled the no-cost data allotment on its plans from 1 GB of unthrottled access to 2 GB, nearly matching a previous promotion that offered customers 2.5 GB of data as part of the base Simple Choice package.
T-Mobile US’ Data Stash program is also up for a change that will see customers only able to keep up to a maximum of 20 GB of rolled-over data for a 12 month period, while the initial Data Stash program allowed customers to keep all of their unused data for 1 year. T-Mobile US also altered its “unlimited” data plan, which now allows for up to 14 GB of tethering usage per month instead of the current offer of just 7 GB.
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