T-Mobile Intros Pocket-Friendly Unlimited 4G Family Plan - Analyst Blog

T-Mobile US, Inc. (TMUS) – the fourth largest national telecom carrier in the U.S. – has announced the launch of a new family plan which offers unlimited talktime, voice messages, text messages and 4G LTE data.

While the other national carriers are still marketing their complex shared data plans, with this new scheme, T-Mobile aims to enhance value and benefits for customers while also simplifying it.

The new Simple Choice plan begins at a nominal $100 per month for two people and is available from Dec 10, 2014 for a limited period. However, customers can carry on with the plan beyond the offer period. Moreover, the data scheme offers a multi-line family concession wherein each additional user, up to a limit of 10, has to pay just $40 more for every additional line.

Thus, a four-person plan works out to $45 per person per month, which is a significant discount over T-Mobile’s unlimited individual plan, which costs $80 per month. Additionally, the plan offers 5 GB of data tethering per line.

Interestingly, the new plan announcement comes in the wake of a warning by leading U.S. wireless carriers – Verizon Communications Inc. (VZ) and AT&T Inc. (T). Both of them apprehend that their earnings in the fourth quarter of 2014 would be hurt by higher promotional expenses and price cuts.

Moreover, in the beginning of December this year, Sprint Corp. (S) further intensified the wireless pricing war in the U.S. after the company claimed that it will reduce the phone bills of AT&T and Verizon Communications customers by 50% if they switch to Sprint’s network.

Thus, T-Mobile’s new plan will further intensify data pricing pressure as it is cheaper in comparison to AT&T, Sprint and Verizon plans.

Notably, along with this plan, the carrier has re-introduced its most successful promotion plan wherein a family of four can get up to 10 GB of 4G LTE data which is equivalent to 2.5 GB per line with no sharing required for just $100 per month starting Dec 10, 2014 through 2015. Although, as 2016 rolls in, this plan will reduce data per line to 1 GB, it would save customers from paying domestic overages, international roaming fees, hidden device subsidy costs and more.

T-Mobile currently has a Zacks Rank #3 (Hold).

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