T-Mobile took its beef with Verizon to the FCC, filing comments that its larger rival continues to fall short in terms of consumer benefits
Verizon Wireless’ recent adjustment to its rate plans continues to draw the ire of smaller rival T-Mobile US, which filed comments with the Federal Communications Commission claiming the moves should not be construed as positive for consumers.
In a filing with the FCC’s Wireless Telecommunications Bureau, Kathleen Ham, SVP for government affairs at T-Mobile US, cited Verizon Wireless’ plan changes as copying those of T-Mobile US, but without the same consumer benefits.
Specifically, Ham noted that Verizon Wireless’ move to now allow customers to rollover their unused data for up to one month falls short of T-Mobile US’ Data Stash program that allows customers to keep up to 20 gigabytes of unused data for up to one year. T-Mobile US had initially allowed customers selecting a data bucket of at least 3 GB per month to keep all of their unused data for up to one year, before slashing the offer to just 20 GB of unused data.
Ham also said Verizon Wireless’ new offer to allow customers to access their rate plan services while roaming in Canada and Mexico is similar to T-Mobile US’ Mobile Without Borders plan, although with its larger rival the feature is only available for customers selecting a data plan of at least 16 GB instead of being offered across all new postpaid and prepaid rate plans as provided by T-Mobile US.
Finally, Ham targeted Verizon Wireless’ “Safety Mode,” which stifles network speeds should a customer go over their allotted data bucket in a month and is similar to overage elimination models used by T-Mobile US and Sprint. The filing pointed to Verizon Wireless charging customers with data buckets of less than 16 GB a $5 per month fee to access the service, with its smaller rivals offering the feature as standard on all rate plans.
In citing the moves, Ham looked to paint T-Mobile US as the consumer-friendly carrier, with Verizon Wireless simply following along in order to be viewed in a similar light.
“This game of follow-the-leader is an example of competition in action, and as [FCC Chairman Tom Wheeler] has explained, ‘the forces of competition are more agile and more nimble to affect extension of services, quality of service and throughput pricing than we can ever be by regulation,’” Ham wrote. “T-Mobile therefore urges the commission to consider these developments as part of its annual assessment of competition in the mobile wireless market as well as when the agency evaluates potential actions that allow for ongoing and vigorous competition amongst providers. There is no debate that the ability and willingness of a maverick like T-Mobile to compete effectively has resulted in tangible consumer benefits across the wireless industry.”
Executives from both T-Mobile US and Sprint took to their respective social media channels following the Verizon Wireless rate plan changes to challenge the new programs.
Following the rate plan adjustments, Verizon Wireless itself came out with its own commentary attempting to correct what it claimed were a half-dozen “myths” misrepresenting the price adjustments, with the most prominent being claims the carrier was raising prices.
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