T-Mobile Isn't Done Shaking Up the Industry
Updated from 9:55 a.m. to include additional comments in the tenth paragraph.
NEW YORK ( TheStreet) -- T-Mobile
Which is why when he warned CNET that "Just when you thought it was safe to return, T-Mobile is back." He also announced the first of what he promised will be another three industry changing moves by his company.
T-Mobile shares were slipping 0.16% on Thursday to $31.66 in early trading.
Despite rising revenue, T-Mobile suffered a fourth-quarter loss of $20 million in its quest to attract new customers to the service. The loss had been $8 million in the previous year.
The company's first new move, announced Wednesday, is called "Simple Starter" . It's a $40-a-month service plan designed to undercut all of T-Mobile's rivals. Beginning Saturday, April 12, customers can opt for the new plan with unlimited talk and text and up to 500 MB of 4G/LTE data. The big difference here is that unlike its other plans that 500 MB number is a hard limit.
When customers get close to that limit they'll receive a text message offering them a chance to purchase a $5 "day pass" or $10 for an extra week's worth of data. Unlike its competitors, T-Mobile's new plan gives customers a choice of whether to extend their monthly data limits instead of just imposing overage charges.
T-Mobile had doubled the LTE data limit on its slightly more expensive "Simple Choice" from 500 MB to I GB a few months ago providing for an opening to create a new plan with the lower data limit. "Simple Starter" is for individual customers, not families, but the company plans to offer it to pre-paid customers beginning next month.
As for the competition, Verizon Wireless
Carriers are currently giving huge rebates/bounties trying to get customers to switch to their service. None of the competition has commented on T-Mobile's latest move.
This morning, CEO Legere announced "Operation Tablet Freedom" which will allow postpaid customers to add a tablet to their current accounts for free. The offer is good through the end of this year and according to T-Mobile's reckoning that comes out to an average of 1.2 GB of free 4G/LTE data each month.