T-Mobile US Unveils Data Rollover Plan, Upgrades Network - Analyst Blog

Yesterday, T-Mobile US Inc. (TMUS) introduced a new data plan designed for the promotion of its “Uncarrier” brand. Named “Data Stash,” the plan will allow the company's wireless subscribers to roll over their unused portion of the existing data limit for another year even after the billing period is over. Notably, Data Stash will be launched in Jan 2015.

Lately, the U.S. telecom industry has been witnessing intense price competition. On Dec 2, Sprint Corp. (S) came up with a same data plan at 50% concession in perpetuity to all AT&T Inc. (T) and Verizon Communications Inc. (VZ) customers who choose to switch to Sprint. On Dec 4, T-Mobile US introduced a pocket-friendly unlimited 4G LTE family plan offering unlimited talk-time, voice and text messages for $100 a month.

Cutthroat pricing competition is compelling large telecom operators to indulge in higher promotional activities. This has led to disappointing financial outlooks by both Verizon and AT&T. Meanwhile, T-Mobile US has decided to abandon its 2G networks in 2015. 

Additionally, T-Mobile US has started deploying LTE network on its 700 MHz spectrum holdings to enhance its service quality outside major urban areas. Earlier data packet drop was a serious concern in these areas.

At present, the company offers LTE in 26 major U.S. markets and covers 260 point-of-presence (POPs) with LTE network. This exceeds the company's own expectations of covering 250 million POPs by the end of 2014. Management is hopeful of covering over 300 POPs with LTE service by the end of 2015.

In a separate development, T-Mobile US is participating in the ongoing AWS-3 spectrum auction conducted by the FCC (Federal Communications Commissions). Recently, the company became the first wireless carrier in the U.S. to offer the LTE-enabled version of Google Inc.'s latest tablet, Nexus 9 at $600, which is also equipped with a modem.