T-Mobile Is Stirring The Pot Yet Again

T-Mobile US Inc TMUS unveiled Un-Carrier 12, which seems to “signal a longer-term commitment to unlimited,” Baird's William V. Power said in a report. He maintained a Neutral rating on the company, with a price target of $51.

Competitive Edge

While T-Mobile has offered unlimited data plans in the past, the latest unveiling reflects a longer-term commitment to offering simpler and “unlimited everything” plans. This is in contrast with the data limits on most plans offered by peers, and posed greater competitive risk to AT&T Inc. T, Verizon Communications Inc. VZ and Sprint Corp S, analyst Power noted.

Related Link: Is Paying For Mobile Data Outdated? T-Mobile And Sprint Launch Unlimited Plans

Details Of The Plan

The latest T-Mobile single rate plan is scheduled to become available on September 6, just ahead of the anticipated iPhone 7 unveil by Apple Inc. AAPL. T-Mobile is expected to phase out its existing plans.

“The first line costs $70 per month, the second $50, with each subsequent line $20 each, implying a total monthly cost of $160 for a family of four. Tablets can also be added for $20 per month…Only SD video streaming is included. For HD streaming, customers would need to pay an additional $25 per month. Customers are also likely to be throttled after exceeding 26 GB of monthly usage,” Power wrote.

Although T-Mobile has reiterated its guidance, the analyst believes that the new pricing could increase ARPU, while it may also increase usage and associated network costs.

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