New T-Mobile Offerings Could Face Headwinds

One factor that could hurt T-Mobile is that its 4G network is only deployed in a few locations around the country. Then there are the penalties customers may incur if they cancel their plans with T-Mobile rivals in order to take advantage of the “no contract” feature.

According to The New York Times:

[I]t may not be enough to persuade smartphone users to abandon the competition.

Analysts said the new marketing strategy, which spreads the cost of a new phone over two years as a separate line item on the monthly bill, will still feel like a commitment to many customers, even if they can choose to pay it off early and walk away. And T-Mobile, which has a slower network than its competitors, is only just beginning to introduce major upgrades.