T-Mobile to offer free unlimited international data, texts
news.cnet.com
news.cnet.com
[1] http://techcrunch.com/2011/12/19/att-tmobile-merger-dead/
I'm not an economist, and I haven't looked into the details of the cell phone market in depth, but here's a possible alternative opinion. I'm not asserting that this is the case; just wondering if it might be.
Would T-Mobile be able to treat customers as well if they were more popular, or are they only in this position because their ratio of customers to cell towers, spectrum, and other capital is lower? And if the latter is true, isn't that an inefficient use of resources, which market forces (i.e. the merger) would have corrected if not for government intervention?
Take a look at T-Mobile's their most recent 10-Q filing. Their EPS is actually negative: http://edgar.sec.gov/Archives/edgar/data/1283699/00012836991...
If this had been structured as preferred equity rather than debt, then it would turn into dividends and move "below the line" on the income statement. T-Mobile USA would then magically be making a profit.
And of course, you're just looking at one quarter: Q2 2013. Q1 2013 was profitable. Q1 + Q2 was also profitable.
T-Mobile USA is not out of the woods yet. But they're in better shape than they were in 2011.
[1] - http://arstechnica.com/gadgets/2012/02/t-mobile-takes-3-bill...
Your second point has some merit though: that once they gain significant market share in the U.S, T-mobile can become anti-customer. But T-mobile's prepaid plans and now this international texting gambit might force other carriers to follow suit before T-mobile gets to that significant market share. At that point T-mobile cannot afford to become anti-customer because other carriers would have started matching T-mobile's pro-customer offers in the meantime.
At least their competitors "get" more things better than them, so for the most part they're not even an option.
in the end, you end up with a result like in politics. Whoever has more money wins the whole market.
The market pretty much exchanged short term benefits (cheaper console, better phone plans) for worse longer term problems (lame games because you have no choice, more expensive phone plans because you have no choice)
I didn't expect to see revisionism in here, let alone of such magnitude.
Without government intervention, there would be no AT&T, nor would there be alternate carriers. There would only be Ma Bell.
And don't bullshitting about Ma Bell's regulated monopoly, the regulation was put in place because Bell was already a monopoly by the time 1934 rolled around.
When these patents expired, there were soon 80 competing companies which captured 5% of the market, rising to over 3,000 companies with over 50% of the market by 1900.
AT&T then lobbied for its monopoly status back, saying the telephone "by the nature of its technology would operate most efficiently as a monopoly providing universal service."
Then during WW1, this monopoly was given "for reasons of national security". If you think that the monopoly came about by market forces then government came to save us, yes there is some revision needed.
> When these patents expired, there were soon 80 competing companies which captured 5% of the market, rising to over 3,000 companies with over 50% of the market by 1900.
And starting in 1907 and the return of Vail, Bell started massively buying them out, attracting the attention of the Justice Department and leading to the Kingsbury Commitment. Kingsbury was essentially repealed 8 years later by the Willis Graham Act, which more or less removed the Commitment's regulatory barriers for acquisition by AT&T, by shifting all oversight to the ICC's rubber-stamping.
> Then during WW1, this monopoly was given "for reasons of national security". If you think that the monopoly came about by market forces then government came to save us, yes there is some revision needed.
The monopoly was already there, Bell was temporarily nationalized during WW1.
> AT&T then lobbied for its monopoly status back, saying the telephone "by the nature of its technology would operate most efficiently as a monopoly providing universal service."
And this was given in 1921 by the Willis-Graham, which removed the regulatory hurdles put in place in 1913 when Bell was already a monopoly or near-monopoly.
That is some pretty serious misreading, Bell got big and stayed big regardless of government intervention, the government tried to keep control of it after being put before the fait accompli (before trying to break the company in '84, as you may have noticed that didn't quite work either)
In cities - their coverage is VERY good. Countryside & cross country road trips are where they fall off the map, but I've been very happy paying $80 for unlimited call/text/data + No B.S.
T-Mobile is way behind in terms of users & they know it - which means they're making strong plays against the competition. Makes me want to bet on them for no other reason than to force the other carriers to step up their game.
http://en.wikipedia.org/wiki/Attempted_purchase_of_T-Mobile_...
http://prepaid-phones.t-mobile.com/prepaid-plans ($30/m for 5GB of 4G, unlimited text, 100 minutes)
Note that in ordering the SIM card I did not indicate that I wanted any particular plan. The $30 plan just "happened" to be available for that card.
Was I willing to wait for one week in order to lower the bill for a large recurring cost by 40%? Yes. But T-Mobile seems to be gambling that most people aren't.
I've been using this plan for about a month or so and coverage has indeed been a little spotty in my area but it's good enough for my needs. If you do want to try it out here's a tip port your number: do NOT do select the option to port during the online activation process. Sign up and activate your SIM FIRST and then call in to initiate a number port request. Once you've activated and signed up for the $30 plan with a port request, there's no way to get a temporary number while waiting for the port request to complete.
[1] http://slickdeals.net/f/6332098-tmobile-99cent-sim-card-sale...
This plan is only available for devices purchased from Wal-Mart or devices activated on T-Mobile.com
It seems to imply device restrictions.
Several of my friends have done just that, get a stand-alone SIM card and then activate it on T-Mobile's website.
Do you know if I buy a SIM card and activate it for that deal will I be able to let it lapse and then re-up it when I come back in 6 months? Or will I have to buy a new SIM card every time?
I'm very keen on trying this new plan though as $3/day on top of pay as you go is not a good value on a 2 week trip. I'd be very happy to just pay $30 and get a reasonable amount of mins/texts along with great data.
If you bring your own device, you have to either buy a SIM from T-Mobile.com and then put it in the device, or you can buy a SIM card kit from Wal-Mart.
No device restrictions.
Personally I'm happy at 500 but use cases vary.
Their rural coverage is pretty awful though.
I've noticed that I only have issues when I go into a building that's not made mostly out of wood. At McDonalds or something, I get great reception, but when I step into a lecture hall or a federal building, the reception drops to 0 bars. Immediately outside of it, the reception is fine.
Aside from getting a phone with a really strong antenna, I'm not sure what to do about this.
I drove from the Canadian east coast to California with a T-Mobile unlimited plan. For 90% of the trip, I was actually roaming on other carriers' networks. I derived zero value from my payment to T-Mobile since I can't actually use my phone except for 911. Now I'm in San Francisco for half a year and speed is around 0.05Mbps in about 30% of the city. And they're not uninhabited spots of town either.
T-Mobile can throw in as many features as they want, but if I can't reliably make a call from home or work, then it's useless to me.
I just got an Aio Wireless SIM card to try out for a month, and it's awesome. I even get service in the elevators and the parking garage. I finally feel like I'm living in modern times!
I rarely leave the city, so the lack of coverage in rural areas doesn't bother me. In NYC I have to say I've noticed a small improvement in reception over AT&T - buildings where I've been dead in the water before now have some connectivity.
So far so good, this new announcement is just icing on the cake, especially as a Canadian expat. It used to be that when visiting home I'd inevitably wind up with one helluva phone bill, and that's just with extremely minimal texting and calling just to herd cats.
This has actually been the norm in UK for quite some years. Look on t-mobile.co.uk for example, they have a SIM Only plans. As an example:
> The Full Monty (SIM Only), £26/month on 12 month contract = unlimited talk, text + data
> iPhone 5c 16GB, £42/month on 24 month contract = unlimited talk, text + data, £30 for phone
So the same plan, the iPhone effectively costs you £414. That't not actually a bad price, esp if you consider it as finance. But not everyone wants a new phone, e.g. maybe your iPhone 5 is still "good" and you want to wait for the iPhone 6 to come out in a year...
As soon as this contract is over or work is no longer paying, I am switching back.
Do they already have that for daytime? I think for most carriers out there, if not, all, night time is minute free.
> While the data is free, it won't be particularly fast. Customers can expect network speeds at around the same level that they get in the US after they are throttled. Chief Marketing Officer Mike Sievert said the average speed customers would get would be around 128 kilobits a second.
Think of it more of an extension of the Kindle 3G business model rather than anything else. The maximum one could theoretically suck through that straw, at 24/7, is 40 GB a month.
I will be buying a Nexus 5 when it comes out though :)
When I was in Taiwan, I was handed a prepaid dumbphone and a 4G wireless hotspot with iffy battery life and some indoor coverage issues.
Being able to send/receive SMSs and brief phone calls with my smartphone's home number, and keep up on email and light browsing on my own phone without being at the mercy of the hotspot, would have been very nice, but I was there for ~9 months split into two trips during the course of a year.
I would gladly pay an extra $10-20/month (with $0.20/minute voice) for such capability over an extended period, but that wasn't, and apparently still is not, an option.
I imagine it's just better for you to get your own plan if you're spending 3/4 of the year there.
car's suggestion is at least an interesting half-solution. I didn't even consider a T-Mobile "wi-fi calling" phone at the time, as I'd been under the impression, right up until today, that T-Mobile had only had that feature for a couple years before abandoning it.
In other words, you can make and receive voice calls on your regular number, and the same for SMS via WLAN.
I'm paying $25/mo for a limited no-contract BYOB plan. They're still taking my money for it, but I'm a little scared, since I can no longer find it on the site.
Over the last six months, I've seen T-Mobile BYOD plans at $15, 25, 30, 35, 45, and up. Now, you can't get any plan from T-Mobile under $50 per month, and that "cheap" plan comes with less high speed data than they've typically offered for less.
They're killing the value of the plans while rebranding throttling as "unlimited" so it sounds like a perk. "Yeah, use all of our awful throttled data you like. Be our guest!"
Someone should put the old plans, like the one you link to, side by side with the new ones. I don't think so many people would still think this is a win for consumers or competition.
* I've found 1.5 GB is more than enough for email, Wikipedia, and the rare voice call - if I'm settled in somewhere to watch Netflix, I always seem to have wifi.
Here's the kit: http://www.walmart.com/ip/T-Mobile-SIM-Kit/24099996
T-Mobile isn't exactly going out of its way to let people know this exists. It's not featured in the way you do for a plan you envision as the future cornerstone of the business.
If I were less lazy and needed more minutes, I'd setup grooveip (or something similar) with my google voice account.
I'm actually seriously thinking about switching, as my Net10 experience is sub-par compared to an actual carrier, and $30/mo is better than $45/mo no matter how you split it. 100 minutes is just too low for me, though. I love my Windows Phone, but that means no Google Voice or realistic VOIP offering.
It's really not a good plan if you use a lot of minutes, but for people like me, it's great.
Me: On a plan that says "First N GB at 4G speeds", what
speed do I get after I hit the cap?
Rep: Once the allotted high-speed data has been used
speeds will be throttled down to our 2G speeds.
This would be comparable to about twice the speed
of dial-up which translates to about 100 kbps.
Thanks for the correction!An example: I flew to the 'states this weekend. Once on the ground, I topped up my American (T-Mobile) sim with a month's worth of credit. (There was no way to do this from abroad since their sims don't work there at all, and their website has a ridiculous country redirect even from your account page).
At the airport, on the way home, I sent a text to my wife letting her know I was on the way. It failed.
I tried again to various permutations of the French number, with absolutely no success. Googling around, it seems that you can't do that with t-mobile. You can't even get them to turn it on, since their "international" packages only work with their contract services. Not just roaming, but even placing a phone call to another country is impossible with pre-paid t-mobile. Sure enough, landing in Paris, the phone was dead dead dead. No "welcome to France" message. No extortionate international roaming charges. Just no ability to make calls at all.
I had to pop my UK sim back in just to be able to use the phone again.
I'm looking forward to the first company (in any country) that truly gets all this. They'll get my business, as well as pretty much all the business from anybody who travels at all.
Outside Europe they're still awful though, something like £1.50/min to call to America/Asia from UK, and same for both placing and receiving calls when in those continents.
Last time I was in America I picked up a cheap phone at a supermarket that gave me 1c/min phonecalls to anywhere in the US or even abroad - including calling UK mobile phones. That saved me a lot of money.
But stuff like the Vodafone deal within Europe are awesome, as it saves the hassle of needing either two phones or sim swapping.
And also I can call everyone from Europe with my plans as well. Unlimited land-line calls to nearly every country.
Your case is a little different but in general it's a huge stream of free revenue for the carriers. Very few people pick their plan based on international roaming. People don't roam internationally very often. Those that do are likely on a business plan and much less sensitive to price. No one has any idea what it costs so they can use very opaque pricing schemes.
As the article says, AT&T and VZW are making 90% margin on their international business which you'd think would make it ripe for competition. But since almost no one purchases their plans based on the international roaming fees there hasn't been much going on.
If you're only there for a few days, free roaming is very nice to have, but if you're there a week or more I think it's worth the small effort to get the local SIM. That also allows me to keep Straight Talk prepaid in the US with my own phone. YMMV, but this was the most economical, flexible route for me.
If you believe it, there is no signal from any carrier at either my current home in Washington, nor my previous home in Santa Clara. And there is certainly no T-Mobile, AT&T, or other GSM carrier signal to be found anywhere near my current home (my AT&T iPhone stubbornly insists on working regardless).
Seriously going to look at MVNO options when I get back; running a pro privacy, pro customer MVNO, ideally based in a country with strong privacy laws, and handsets transparently configured to be safe for customers (even when the local carrier is turning over data..) would be pretty fun.
Roaminng charges are hardly going anywhere. And that would be in July 1st… And countries have opposed the measure.
I love T-Mobile's approach, and the whole reason I use them is because they are the underdog who's doing things a little differently.
I hate to be in an area and not have coverage. I carry another prepaid sim card around just for that case but obviously that's a different number then. I'll be happy to pay a premium if that was available.
And then maybe one day we can also get rid of the sim cards and just do it in software... I don't get why we still have sim cards.
I reported I had barely a signal inside my house, a couple weeks later I had 5 bars.
::rageface::
% cat /tmp/tmobile_countries | sort | pbcopy
Aland Islands
Anguilla
Antigua and Barbuda
Argentina
Armenia
Aruba
Australia
Austria
Bahrain
Barbados
Belgium
Bermuda
Bolivia
Bonaire
Brazil
British Virgin Islands
Bulgaria
Cambodia
Canada
Cayman Islands
Chile
China
Christmas Island
Colombia
Costa Rica
Curacao
Cyprus
Czech Republic
Denmark
Dominica
Dominican Republic
Easter Island
Ecuador
Egypt
El Salvador
Estonia
Faeroe Islands
Finland
France
French Guiana
Germany
Ghana
Greece
Grenadav Nicaragua
Guadeloupe
Guatemala
Guyana
Hong Kong
Hungary
Iceland
India
Indonesia
Iraq
Ireland
Israel
Italy
Jamaica
Japan
Kenya
Kuwait
Latvia
Lithuania
Luxembourg
Malaysia
Malta
Martinique
Mexico
Moldova
Montserrat
Netherlands
Netherlands Antilles
New Zealand
Norway
Pakistan
Panama
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russia
Saudi Arabia
Singapore
Sint Maarten
Slovakia
South Africa
South Korea
Spain
Sri Lanka
St. Barthelemy
St. Kitts and Nevis
St. Lucia
St. Martin
St. Vincent & the Grenadines
Suriname
Svalbard
Sweden
Switzerland
Taiwan
Thailand
Trinidad and Tobago
Turkey
Turkmenistan
Turks and Caicos Islands
Ukraine
United Arab Emirates
United Kingdom
Uruguay
Uzbekistan
Vatican City
Venezuela
Vietnam
Zambia pbpaste | sort | pbcopyCase in point, I'm currently paying them $25/mo for 1.5 GB of high speed data. No contract, BYOD. I originally thought I needed "unlimited" data, but found that if I just avoid videos until I'm around wifi (which I'm around way more often than I thought I would be), then I never touch the limit.
So how's the $50 per month for 500 MB high speed plus unlimited everything else compare?
Ting offers 500 MB for under $20 / mo, and you can even pay-as-you-go to save money, or cover overages at a reasonable rate. For $50 per month, Cricket gives you 2.5GB of 4G speeds per month, falling back to unlimited 3G speeds, 5GB for $60 or 10GB for $70. Neither are BYOD, though, which can be a deal killer.
T-Mobile had great pricing, but now they're just normalizing with the larger players like Sprint and AT&T, drifting away from the bargains offered by the mobile virtual network operators (MVNOs), probably pulling the whole market upwards.
> New and existing T-Mobile customers who are on a post-paid plan are eligible for the new international plan, which kicks off on October 31
I know they said the free overseas data is only for contract customers but I wonder if they will allow us pre-paid people to add on the "packs" they mention before going on a trip.
T-Mobile is doing pretty disrupting things in the mobile service market and I hope it pays off for them.
It's not free, you're paying a monthly fee for it.