Tech Analyst Jeff Kagan on T Mobile New Un-Carrier Price Model

Share Article

Will T-Mobile change the way industry pricing works? Wireless Analyst Jeff Kagan is available to speak with reporters, or you may quote him through this release.

Jeff KAGAN, Industry Analyst

Wireless Analyst Jeff Kagan is available to speak with reporters, or you may quote him through this release.

T-Mobile is changing their brand and their pricing model. They will be the un-carrier. Will this help them do more business? And will their new pricing model put pressure on other national carriers like AT&T Mobility, Verizon Wireless and Sprint Nextel to change their pricing models, or will this remain a T-Mobile story?

Industry analyst Jeff Kagan offers comment on this story.

“There are several questions raised by the T-Mobile move to change the way they charge for wireless services. One question is, will this move by T-Mobile force larger and stronger competitors like AT&T, Verizon and Sprint to change their pricing models and chase them? I would say there would be absolutely no way the larger and stronger competitors will make such a dramatic shift. There is no reason. Now if T-Mobile pulls a rabbit out of the hat and starts to win incredibly strong business and takes significant share away from one or more leaders, then all bets are obviously off, but I really don’t think that will happen.” Says Principal Analyst Jeff Kagan.

Another question is raised by John Legere, CEO of T-Mobile USA who says their new iPhone will cost less than on other carriers. However he did not say that the customer would have to pay for the phone entirely on starting the service, rather than paying for it over two years. Both ways make sense, but it’s up to each customer to decide which way is best for them.

“There is a segment of the marketplace which clearly prefers a no-contract environment. T Mobile is not the first in this segment. That describes is the pre-paid market with competitors like Tracfone. In fact companies like AT&T, Verizon and Sprint also offer a pre-paid service. So it’s not like T Mobile is inventing an entirely new space. Rather they are switching the space they are competing in. The new T Mobile plan is somewhere in the middle, a hybrid plan, between pre-paid and post-paid. This sounds like a regular post-paid plan, without having to agree to a two-year commitment. That means the customer has both the benefit and the drawbacks.” Says Jeff Kagan, Technology Industry Analyst.

According to Jeff Kagan, “One problem with this new idea is phones are no longer discounted without a two year contract. The two-year contract allows carriers to discount the expensive handsets. So T Mobile may have an advantage with no long-term contract, but the will also have a disadvantage where customers pay much more, up front, for the same phones. Another problem is the T Mobile network. It is typically slower than AT&T, Verizon and Sprint.”

Will this new plan from T Mobile be successful? That’s the big question. We’ll just have to watch and see.

About Jeff Kagan

Jeff Kagan is an Industry Analyst who is regularly quoted by the media over 25 years.

He offers comment on wireless, telecom and tech news stories to reporters and journalists.

He has also been quoted as a Tech Analyst, Wireless Analyst, Telecom Analyst and Principal Analyst depending on the focus of the story.

He follows wireless, telecom, Internet, cable television and IPTV. He also follows the wider and more general consumer electronics and technology space.

Visit his website: at jeffKAGAN.com to learn more and for disclosures.

Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.

Clients: He has worked with many companies over 25 years as consulting clients.

Contact: Jeff Kagan by email at jeff(at)jeffKAGAN(dot)com or by phone at 770-579-5810.

Kagan is an Analyst, Consultant, Columnist and Speaker.

Twitter: @jeffkagan

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Jeff KAGAN
Follow us on
Visit website