T-Mobile makes aggressive move with mobile broadband pricing plans

Updated June 1, 2010, 2:35 p.m. E.T.

Current Analysis discovered that T-Mobile USA has dramatically changed its pricing strategy of its webConnect portfolio--a move that could finally trigger a price war in the mobile broadband space, although a T-Mobile spokeswoman indicated the pricing is promotional at this point.

T-Mobile now charges $40 per month for a 5GB plan (with no overage charges), beating out similar offerings from competitors by a margin of $20 per month. The operator has also adjusted the cost of its 200MB no contract and contract plans, which now cost $25 per month, which Current Analysis said considerably dilutes the differences between the two plans. All plans include unlimited WiFi access at no additional cost.

Current Analysis took a positive stance on the move. "For the carrier, this is a good strategy to counter churn and attract new users to its Even More webConnect portfolio and lock them in," noted Current Analysis analyst Deepa Karthikeyan. "... T-Mobile's webConnect plans break new ground. The carrier is taking the bold strategy of equalizing the cost of its contract and no contract broadband services in a bid to get its users to pick the former. The new prices are unparalleled in the prepaid and postpaid segments and will likely up the ante of close competitors Leap Wireless and Virgin Mobile who can be expected to retort back with similar aggressive moves to curb potential loss of consumer customers to T-Mobile."

The pricing change comes after T-Mobile announced last week that its HSPA+ network now covers more than 30 million potential subscribers and it plans to cover 100 major metropolitan areas--185 million people--by the end of the year.

For more:
- see Current Analysis (sub. req.)

Related articles:
T-Mobile USA rolls out HSPA+ in Northeast
T-Mobile USA reveals more HSPA+ rollout details
T-Mobile's HSPA+ wave to hit coasts first

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