Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

T-Mobile's new business pricing targets AT&T and Verizon

Matt Hamblen | March 19, 2015
T-Mobile is aggressively going after business customers by offering the same kind of low-cost, simplified pricing and monthly service plans it has used to good effect with consumers.

T-Mobile is aggressively going after business customers by offering the same kind of low-cost, simplified pricing and monthly service plans it has used to good effect with consumers.

Mobile CEO John Legere on Wednesday unveiled a new "Un-carrier for Business" plan priced at a flat $15 per phone line per month for up to 1,000 lines, which includes unlimited talk, text and 1GB of data per line. The price above 1,000 is just $10. Families of T-Mobile business customers will also receive discounts of up to 50% on their consumer lines.

Legere also had two new lures for consumers: T-Mobile will cover all outstanding phone and tablet payments up to $650 per line for those 29 million customers currently locked in to phone purchase payments with AT&T, Sprint and Verizon.

He also committed that both business and consumer customers on T-Mobile Simple Choice plans won't see rates go up as long they remain with T-Mobile; and customers on unlimited plans will see rates locked-in for two years.

Legere attacked both AT&T and Verizon for practices that can mislead business customers and said T-Mobile's approach will eliminate haggling and shell games with sales reps and uncertainty over pricing. T-Mobile's simplified plans will cost 42% less than either AT&T or Verizon, he asserted, which should lead to company CIOs demanding that their AT&T and Verizon sales reps justify their higher costs.

"I can't imagine the conversations," Legere said with his trademark smirk. He urged CIOs to ask reps why AT&T and Verizon charge so much.

T-Mobile will also provide a specialized business care center for support around the clock. T-Mobile has the fastest 4G LTE service that now serves 275 million Americans, Legere claimed. That much network coverage should assure business customers that they can use the T-Mobile network widely for critical business needs, the company said.

By the end of the year, the LTE service should reach 300 million customers.

"We're driving the conversation about [an effective LTE] network, and we're at a great spot, but we're not done and not even close," Legere told reporters in a briefing that was webcast. He admitted that T-Mobile still needs to build out its LTE network for some rural and in-building areas that could serve mainly smaller businesses.

In addition to the basic 1GB of data offered per line, T-Mobile will offer another 2GB for $10 a line or unlimited data for $30 a line. There will also be a pooled data option for businesses that allows work groups to share data; that option starts at $4.75 per gigabyte for a 100GB minimum, but drops to $4.25 per gigabyte for ITB minimum.

Legere saved some of his most biting criticism for competitors who set up data buckets for business customers — sometimes come with draconian penalties should a company exceed the amount of allocated data. "What the other guys do is sell a shared data bucket with punitive overage prices and if there's one bit over, the price could be double or four times," Legere said.

 

1  2  Next Page 

Sign up for CIO Asia eNewsletters.