T-Mobile launches $40 plan aimed at 'value' customers
A T-Mobile logo hangs under pink umbrellas at the stand of the German telecommunications giant at the 2014 CeBIT computer technology trade fair in Germany.(Photo: John MacDougall, AFP/Getty Images)
T-Mobile is extending its "Uncarrier" strategy to entry-level customers.
The wireless company, led by its outspoken CEO John Legere, unveiled a "Simple Starter" $40-a-month plan on Wednesday, offering folks unlimited talk, text and up to a half-gigabyte of speedy 4G LTE data, with no "overage" fees for customers who go past their allotment.
Those who do require more data at that point — and T-Mobile doesn't think many people who opt for this plan will — can purchase a day or week pass, or upgrade to one of T-Mobile's "Simple Choice" plans (starting at $50 a month). The new plan kicks in on April 12.
In the past year or so, T-Mobile has rankled wireless rivals by such measures as eliminating annual service contracts, agreeing to pay early-termination fees to help consumers who want to switch carriers, and reducing bill shock for customers who roam internationally. The Simple Starter scheme is a domestic-only plan.
"We're not going to treat customers in the value segment as second-class citizens," says T-Mobile Chief Marketing Officer Mike Sievert in an interview, claiming rivals are "hosing" customers with low-price "bait and switch" come-on offers.
Legere himself pulled no punches in announcing the news in his blog:
"Just look at the frenzy of knee-jerk moves the competition launched in recent weeks," writes Legere. "It's been fascinating to watch the big, fat, old-guard carriers stumble as they try to respond and slow the change we are driving into this industry. I don't know whether to laugh or cringe as they try to present themselves as anything other than the merciless, greedy utilities they are. They must be thinking that we are done, because they've thrown a ton of money at short-lived promotions that come and go, and they've rolled out painfully lame knock-offs of Un-carrier innovations like our JUMP! upgrade program. Pay twice for your phone? (I'm looking at you, AT&T.)"
T-Mobile plans to announce other moves this week, Sievert says. "Our view is that there are so many more problems to solve in this industry."
References
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