T-Mobile Unveils Contract-Free Value Plans

Telecom & Wireless

Published: March 25, 2013 7:00 am

Last Updated: December 24, 2013 9:22 am

T-Mobile runs well behind Verizon Wireless, AT&T Inc. (NYSE: T) and Sprint-Nextel Corp. (NYSE: S) in the race for wireless customers in the United States, despite its upcoming marriage with MetroPCS Communications Inc. (NYSE: PCS). The division of Deutsche Telekom means to change that with a revolutionary plan that will allow customers to buy phones that do not carry the two-year subscription packages that its rivals have.

Many consumers consider these plans onerous because they are a financial block to buying new phones and moving from carrier to carrier without large penalties. To thwart its larger rivals, according to SlashGear:

T-Mobile’s new contract-free value plans have just gone live. All of the new plans will have unlimited calling and unlimited texting included. The cheapest plan available is the $50 unlimited talk, text, and 500MB of data plan. If you want to increase your data limit, you can do so for an accumulative $10 charge. So for the 2GB plan, you’ll have to pay $60, 4GB you’ll have to pay $70, etc. After you reach your data limit, your data will be throttled to 2G speeds. All of the tiered data plans come with free Mobile Hotspot, so you can tether your phone to your laptop or PC.

Early sales will show whether this convenience will trump the brand loyalty that Verizon Wireless and AT&T have taken so many years to create.

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