T-Mobile is doing away with data limits on subscriber contracts in a move that'll nix the idea that the wireless was reaching a detente where pricing pressure would ease. In addition, Sprint is also rolling out new unlimited plans.
The upshot here is that T-Mobile is going after the family plans that are more commonly used at Verizon and AT&T. Both Verizon and AT&T have been adding data to their plans.
While the T-Mobile plans may initially ding average revenue per user, the lifetime value of a customer is better, said Jefferies analyst Mike McCormack. Family plans were one reason T-Mobile's financial results fared well in the second quarter.
Under T-Mobile's plan, the first line on an unlimited plan is $70, the second is $50 and additional lines are $20 a month up to eight lines with autopay. Without autopay, those prices are increased by $5. These plans could also be handy for fledgling businesses with just a handful of employees.
Add it up and T-Mobile and Sprint are aiming to create more of a subscription model for mobile.
The one caveat is that the 3 percent of subscribers who use more than 26 GB of high-speed data a month will see slower speeds as traffic is prioritized. T-Mobile subscribers can keep the plans they have too.
Sprint has a different spin on its Unlimited Freedom plans, but the economics are similar. Sprint will offer unlimited talk, text, data, and "optimized streaming video, gaming and music" for $60 a month for one line, $40 for the second, and $30 for additional lines up to 10.