Rumor Mill: T-Mobile to slash price of unlimited plans

T-Mobile USA is planning to slash the price of its unlimited plans for individual users on both its postpaid and no-contract offerings, according to the blog TMoNews.

According to the blog, which cited an unnamed source, on Feb. 23 the nation's No. 4 carrier will drop the price of its unlimited postpaid plan, called Even More, from $99.99 per month to $79.99 per month. Additionally, the blog said, the no-contract unlimited plan, called Even More Plus, down to $69.99 per month from $79.99. Each of those plans offers unlimited voice, texting and web browsing. The blog said that the changes are being made to coincide with the launch of the Samsung Galaxy S 4G, T-Mobile's latest HSPA+ smartphone, which can reach theoretical peak data speeds of up to 21 Mbps.

A T-Mobile spokeswoman declined to comment.

If confirmed, the changes would allow T-Mobile to significantly undercut the prices of its larger competitors. It would also seem to fit with T-Mobile USA CEO Philipp Humm's desire to reinvigorate the "challenger" mentality for the carrier, which is undertaking a comprehensive turnaround strategy largely based on reducing churn, cheaper smartphones and the advantages of HSPA+ technology. The move would also come just weeks after Sprint Nextel (NYSE:S) raised the price of its unlimited smartphone data service by $10 per month for all new and upgrading smartphone subscribers.

"Unlimited rate plans have become increasingly popular because of the attraction of unlimited data to the quickly rising number of smartphone users," BTIG analyst Walter Piecyk wrote in a blog post. "Sprint, AT&T (NYSE:T) and Verizon (NYSE:VZ) offer similar rate plans at $110, $115 and $120 per month respectively and AT&T's plan does not include unlimited data. T-Mobile would become a compelling alternative if it can offer this much savings in addition to HSPA+ phones which promise very high download rates."

For more:
- see this TMoNews post
- see this BTIG blog post (registration req. )

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