T-Mobile Responds to Sprint’s Increased Data Plans

by Matt Klassen on August 27, 2014

When Sprint adjusted its family bundle plans to add more data at standard industry price points, America’s third largest wireless provider was hoping to differentiate it from the market, giving consumers reason to pause before making a decision about their carrier. It looks like any differentiation Sprint was able to establish, however, lasted about one week, as T-Mobile has responded to Sprint’s aggressive new promotions with some added value options of its own.

T-Mobile’s latest plan, geared towards individuals unlike Sprint’s Family Bundle pack, is offering customers 2GB of data for $45/month, whereas the company previously offered only 500MB of data at that price point. T-Mobile now adds this promotion to its ongoing UnCarrier offerings, like removing overage charges, abolishing contracts and subsidies, and paying early termination fees from its competitors.

Although many are calling this tit-for-tat marketing strategy a price war among wireless carriers, the truth, as I’ve said before, is that price has very little to do with it. This, at its most basic, is a value war, with Sprint and T-Mobile both trying to offer consumers more bang for their mobile buck, adding more data at certain price points while leaving the prices generally intact, and in some cases, actually charging a little more for all this extra data.

T-Mobile’s latest promotion comes just a week after Sprint announced it was set to shake up the wireless market with its own aggressive pricing. At the time Sprint announced it was abandoning its own “Framily” plan in favour of a new Family Bundle pack and reintroducing an unlimited data plan for $60/month. It was clear during that with the announcement Sprint was aiming its new marketing strategy squarely at T-Mobile; the market’s low hanging fruit if you will.

While the largest carriers have yet to do anything in response to Sprint, T-Mobile clearly wasn’t content to rest on its laurels, as in addition to quadrupling its data allotment at the lower price points, T-Mobile announced for a limited time that it would give new customers leaving Sprint (and any other carrier) unlimited data at no extra charge for a year. It has also offered this promotion to existing T-Mobile customers who refer new subscribers to the service.

As this battle of the mobile lesser lights plays itself out, there’s no question that it’s customers who will benefit the most, as both Sprint and T-Mobile are offering significantly more value then AT&T or Verizon. Consider that if you want 2GB of data on a Verizon plan that you’ll be paying $60, considerably more than a T-Mobile subscriber with the same data allotment.

Of course as I said before, getting 2GB of data for $45 is only a deal if you actually want (and use) 2GB of data, otherwise you’re just paying money for nothing (which is likely what Sprint and T-Mobile are hoping for). These added value promotions are great if you consume large amounts of data and don’t want to pay the higher prices of Verizon or AT&T, but if you really want to save money, neither of these carriers are really offering you anything substantial, with T-Mobile even quietly increasing the price of its Simple Starter plan by $5, certainly not something the company is quick to advertise.

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Written by: Matt Klassen. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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