CFO: $10 increase for unlimited required to make a return on network improvements

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At the end of last week, T-Mobile surprised us all by rolling out an update set of Simple Choice plans. Replacing its three-tier system with four. Bumping up the data allowance on the two cheapest plans and adding Stateside international calling and texting would possibly have stolen the headlines had the changes not also bumped unlimited data at high speeds up by $10 per month.

The reason for this price increase has been unveiled by T-Mobile’s CFO, Braxton Carter, according to a report by Fierce Wireless. Speaking at the the Internet & Telecom Conference, Carter stated that this $10 increase was needed to help the company make some money back on its fast and expensive network expansion efforts.

It’s clear – that over the past 12 months or so – T-Mobile’s focus has clearly been on taking on more consumers and expanding its network reach. But that doesn’t happen without an expense, and although it’s still clearly focussed on growth, it needs to keep an eye on the bank balance too.

“…being focused just on consumer growth without resulting increases in cash flows and profitability would not be the right approach, that you have to have a holistic view. We’ve also talked about the significance of data monetization, or being paid for what we’re providing in the marketplace.”

Now, there’s a reason why the $70 price plan has been altered to only include 5GB of data, and it may not be as stingy as it sounds. On average, T-Mobile’s unlimited customers tend to use around 5GB data. And, the $70 plan also lets you use the 5GB for tethering – up from 2.5GB.

With the inclusion of more data and international calling/texting, most of the Simple Choice fans are much better value for money. And if T-Mobile needs the extra income from the $80 plan to keep up its expansion across the States, I’d say that’s a wise move from a consumer and business standpoint.

Via: FierceWireless

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  • KlausWillSeeYouNow

    A network takes money, and honestly $80 is still more than reasonable for the fastest 4G network in America. At least they’re upfront about why they need the money, as opposed to AT&T’s ambiguous “Administrative Fee” that was automatically tacked on to the bills not too long ago.

    • Roger Sales

      I don’t really think it’s a big deal because it’s only 80$ if you have one line, family plans are still way inexpensive and they are not taking away anything from anyone. at 5 lines you’re still only playing 260 for unlimited tops…….and thats only if all five lines need truly unlimited(which they probably don’t). The most important thing is that unlimited is here to stay, period.

      • archerian

        Unlimited might always be assured available, but the price at which it will be offered isn’t. With Voice and Texting margins shrinking, carriers (Un-Carrier or not) will find out ways to increase monetization of data.

        • Roger Sales

          I get that, but at least I can say for me it will be worth it. The LTE network is being expanded to over 20 million more people that ever even had 3G before – More coverage is what we’ve been fighting for and we’re getting it. Better penetration inside is what we’ve been wanting and we’re getting that too.
          It was only 3 and a half years ago Sprint customers were FORCED to pay another 10$ a month for “premium data” when getting a wimax phone, and that better “service” never came to fruition, just more problems.

    • Trevnerdio

      Boy, is the fast network true! My friend and I did a speed test one after the other in Panama City, FL and T-Mo won out with double the speed of Verizon’s LTE! And the upload was even better.

  • pops87

    I’m confused; are current simple choice plans being raised by $10 or does this only apply to new customers/plans?

    • Waveblade

      You’re grandfathered in, if you change nothing you’ll stay on the unlimited plan.

    • sushimane

      U can opt the 10 dollars to get more or keep ur original plan.

      • Hurlamania

        Current $70 unlimited users will get the $80 features with no cost increase.

        • JBLmobileG1

          True to an extent, if you want the 5gb of tethering, you’ll have to up your plan to $80. Otherwise everything stays the same. Still unlimited data but only 2.5gb of tethering.

    • Willie D

      Simple Choice plans are not going up in price. The data you add is. The base plan is always $50 for the first line, $30 for the second and $10 for lines 3-5.
      Currently …
      $0.00 = 500MB High Speed Data with 500MB HotSpot.
      $10 = 2.5GB High Speed Data with 2.5GB HotSpot
      $20 = Unlimited 4G High Speed Data with 2.5GB HotSpot
      March 23…
      $0.00 1GB High Speed Data with 1GB HotSpot
      $10 = 3GB High Speed Data with 3GB HotSpot
      $20 = 5GB High Speed Data with 5GB HotSpot
      $30 = Unlimited 4G High Speed Data with 5GB Hotspot

      • Whiskers

        If this is true I’m getting hosed.
        I have 3 lines in my family , My T-Mobile plan states I have the simple choice shared family plan.
        $80.00 + $20.00 for my line , then $10.00 each for the other two lines I have for my wife and son for a total of $120.00/month before any EIP or other options .
        How can I get 3 lines for $90.00 that you stated ?
        When I try to see if there are any other plans like you have stated the website states I have the best plan available at this time.

        • TheVorlon

          The $80 pays for lines 1 and 2.
          $10 pay for line 3.
          $80 + $10 = $90

        • Moby

          The $90 only gets you 500 mb of high speed data per month. You probably have some data add-ons to get more high speed data that bring the price to $120.

        • Whiskers

          UPDATE:
          I called CS and got it all figured out. They corrected my bill/plan now and it is as Willie D stated.
          I also had them correct it so my Original Jump is still on 2 of my plans.
          With two Jump lines of the 3 lines I have I now pay $110.00/month.
          Thanks for the tip Willie D , you helped me save more money a month.

        • Willie D

          You’re welcome. Though I have no idea what I did. Hahah

    • Hurlamania

      Only unlimited plans purchased after the 23rd. You are fine

  • sushimane

    For me I’m fine with that their still cheaper then the others. I get to keep my unlimited plus 5gb for tethering not a bad thing but people that’s still on the 70 unlimited plan plus 2.5gb can opt out or in. its customers choice 10 dollars for those features aren’t half bad.

    • Willie D

      I disagree, they should have kept the $20 Unlimited 4G plan as it is, with the 2.5GB tethering hotspot, or sold 5GB High Speed with 5GB HotSpot for $20 and along side it the option of $20 Unlimited 4G High Speed Data no Hotspot.

      • sushimane

        I agree of changing the middle tier to 5gb everything. Because the average T-Mobile user use at least 5gb. But if people just the unlimited 4g join before 23.

        • Dakota

          Did the say the average Tmobile user or the ones who use unlimited data? Because most surveys of average users show 1gb ish or definitely less than 2.

        • sushimane

          yes my mistake.

    • Hurlamania

      There is nothing to opt in or out of.
      If you’re on $70 plan now you get everything on the $80 plan without paying $80

      • JBLmobileG1

        Almost everything. You still only get 2.5gb of tethering while the $80 plan includes 5gb of tethering. Personally 2.5gb is fine for me because I would only need it maybe if I go on Vacation for my laptop or something, but even then I don’t think I would use that much.

        • superg05

          is it bad that my unlimited data is 20 bucks a month

        • JBLmobileG1

          So is mine. And when you add the Unlimited talk and text for $50 with the $20 Unlimited data it’s $70. ;)

  • Willie D

    They should have kept quiet on the reasons, because now AT&T and Verizon are going to use this against them by saying that T-Mobile realized they need a bigger, stronger network to keep customers happy, and unlimited data again, is not viable. Here it comes people..

    • Dakota

      Eventually it probably won’t be. Eventually home internet will go to tiered systems too as more people continue streaming

      • TmoFan

        Home internet is like that already. At least in Atlanta comcast charges if you use more than 50GB a month.

        • Trevnerdio

          You mean 250? They’ve suspended that where I live.

        • xmiro

          now that Google fiber is coming to Atlanta that cap will go away most likely

      • Tiered of This Ish

        And then we can all forget this nonsense and go play outside in REAL HD!!! :D

  • Josh

    Im ok with the price increase, I just want to know what i have to pay to be able to make calls indoors.

    • Moby

      Whatever Verizon charges.

    • Jay Holm

      What about wifi calling? I’m indoors right now, and have 4 bars of LTE.

      • http://benpike.net/ Ben Pike

        Which is nice and all, but not the case everywhere…

      • Neolution

        The problem with Wi-Fi calling is it only works on compatible devices sold directly from T-Mobile. If there was an option to add the feature / service to ALL devices (ie. Nexus, iPhone, Moto or any BYOD from another carrier), then we would have a real solution to indoor signal issues.

  • blokeinusa

    This will be even a better deal, plus free state to international text/talk will lower my bill by a few dollars a month as well…Well I guess my mom can now talk all she wants to Canada.

    • Hurlamania

      It’s only text not talk

      • blokeinusa

        Thanks, thought I saw international talk too….

    • Dakota

      Get a free app like Viber and she can talk to Canada for free whenever she wants. I call and text Canada, UK, Australia all for free on Viber

      • blokeinusa

        My mom was talking about that, but I don’t see it any different than skype. Only difference is it looks like there international voip calls are a lot cheaper than most other services I’ve seen. If they had something like google voice where they forward calls to your phone, that would be a game changer.

  • Dakota

    Its called being a publicly traded company and having a $20 million quarterly loss. TMobile is a business, not your friend.

    • Danny Lewis

      ..but..but T-Mobile said they would come to my birthday party… they promised!

    • themask128

      This is true that they are a business but I must give them Kudos for being upfront and fair. They are not removing the old option for customers currently using it and they have given people far more notice than other carriers of the changes – its not oh here it changed take it or leave it.

  • Francesco

    so if you sign up before March 23rd you will be able to keep the $70 plan vs waiting to switch later and paying $80/month for the same?

    • JBLmobileG1

      Yes but the $80 plan includes 5gb of tethering while the older $70 Unlimited data plan only includes the 2.5gb of tethering.

      • Fabian Cortez

        Let’s not forget the international texting from within the USA which is included.

        • Nurdface Gamerhandz

          included with both plans, keep that in mind.

        • Fabian Cortez

          The new stateside international texting isn’t included in the [soon-to-be-old] $70 plan.

        • Nurdface Gamerhandz

          Yes it is. Trust me.

      • IamTwone

        Between me and my sister we used over 20-30gb a month on each of our lines & was getting a $40 credit for over 6 months for the extra 6.5gb of tether once they told me they wasnt going to give me the credit anymore i asked them how much out of the 6.5gb i actually used. By multiple reps i was told they couldnt tell the data from my phone and tethering just that i used around 22gb on my line. & was told they usually only throttle when they see a huge jump from like 5gb to 20gb they think your tethering. I have tested this on my tmobile s4 & unlocked lg optimus g pro. So this 2.5gb update is crap atleast we get to keep what we have.

        • danielhep

          The rep was wrong. They can tell tethering data from phone data. They look at the headers of the file being downloaded. If it is a desktop user agent, then it is a computer requesting the file.
          You can see this if you download the T-Mobile data usage app, it actually separates tethering data from normal data usage. You can see the difference clearly.
          I know this because I have 100 mb of tethering on my plan, and as soon as I go over 100 mb, I get a message on my laptop telling me I’ve been cut off. I still have plenty of data left to use on my phone.
          However, there’s lots of ways around that and they can’t tell.

        • randomnerd_number38

          The system obviously can keep track of what is SMHS and what isn’t, but for some reason there is no tool to let the reps see that. All they see is how much total data has been used.

  • randian

    Does this change affect prepaid too? It won’t affect me personally, since I use less than 5GB per month anyway.

    • Michael

      No.

      • No

        How is it logical to justify this increase? You’re saying that as T-Mobile increases is customer base out obviously need to increase its price, that being the case I don’t want to hear another bad word about any other carrier that has more customers, you have completely justified them for having higher prices than T-Mobile and concluded that there is no different in T-Mobile than any other carrier, their prices are just slightly more competitive at the moment while they aquire more customers, eventually they’ll all be the same…. This site should now shut down.

  • Scott

    How about more domestic roaming data?

  • Eric00

    I completely understand why TMO is doing this and have no problem with it. TMO has added over 4.4 million subscribers in the last year and obviously the network is going to get slower, thoughit is still very fast, because of all the new subscribers. TMO needs money to keep the quality of their network going and even improve it. This is a smart move from T-Mobile because though they upped the price on the unlimited LTE plan, they gave the customers on other plans more data (most customers are on the other plans). If you need more then 5 GB of data then TMO is still obviously the best choice data wise. Sprint sucks, at least in my area, AT&T is too expensive with data, and Verizon makes AT&T’s data prices seem fair. They are doing this to improve the network and they are not hurting current customers anyways so I don’t see why anyone should be upset.

  • Paul

    I get the price hike and it makes sense.
    But 5Gigs tether??? I 25Gig last month! HEY OH!! Spoofers kick ass!

    • xmiro

      and that’s why we can’t have nice things

  • dontsh00tmesanta

    It’s understandable

    Least it doesn’t say premium data lol sprint

  • philyew

    It’s a nice story about the extra cash from unlimited data paying for network upgrades, we all want that, but the truth is probably a little more prosaic: they need to tweak the bottom end of their plan structure to maintain a competitive edge and don’t want to drive down their average revenue from users any further.

    The result is that they will lose some money from people who might have stayed with or moved up to the 3GB layer as they revert to/remain with the base plan. They will also lose some money from people sticking with/reverting to 3GB who might have otherwise been on the unlimited plan. They’ll cover this with more income from the unlimited layer. Problem solved.

    At least they are acknowledging the price increase now and not just trying to sell it all as an upgrade. It wasn’t so much the price increase that concerned me as the way they tried to make it sound like a good thing.

    • Serge

      Or maybe it’s a reflection of the fact that unlimited plan is not sustainable if the price stays the same. They have to increase the price to discourage people from buying unlimited.

      Right now T-mobile deployed about 10+10MHz LTE but they have only 80MHz of spectrum available. At best they can increase LTE to 30+30MHz within two years but will it be enough to cope with new customers, new smartphone users and increased data demand? Hopefully there will be more spectrum available in two years otherwise they will have to increase network density and that will for sure drive prices up for all customers.

      • xmiro

        From what I’ve read what matters more is towers, since it’s the towers and cells on those towers that have the capacity constraints

        • Serge

          No, backhaul constraints just take time to improve. Spectrum constrain is a real physical cap. One sector of a cell tower can only provide 173Mbps per 20MHz of spectrum at most (to smartphones with 2 MIMO antennae if they are all located right under the tower). The only improvement to LTE we will see eventually is CoMP (Coordinated Multipoint). It will increase real-life throughput. I haven’t heard any carriers talking about it yet.

      • philyew

        Unlimited data is still a marketing tool and they are most interested in attracting new customers at as fast a rate as possible.

        Think about the numbers here. There’s probably less than 5% of the customer base on an unlimited plan now, based on statements about relative data use. All the existing customers have the option of sticking with the current $70 plan, if the don’t need to increase their tethering allowance. When you take out the wholesale customers and prepaid users, TM have 22 million branded postpaid customers and up to 75% of them were expected to be on Simple Choice plans by now…that’s 16.5 million.

        The total number of unlimited users is therefore, probably less than 1 million. We know that many won’t be paying any more for their data usage, but even if they were, that would raise just $120 million extra over the course of a year. Having spent almost $5 billion on the network modernization program and 700MHz spectrum acquisition so far, how much will this extra $10/month actually contribute to offsetting those costs?

        I think the revenues will be more effective offsetting the reduced revenues from the other plan changes than it will making a significant contribution to the network upgrade.

        • Serge

          I agree. My point is actually that T-mobile doesn’t want as many unlimited users as they are getting now and that’s why they are increasing prices. Neville Ray: “unlimited, poor-quality data is really a poor offering to put into the marketplace.”

        • philyew

          I think they are in a confused position now. In my view, rather than unlimited data allowances, it’s tethering that offers the greatest threat to network quality.

          Just because TM have monetized the service, doesn’t alter the fact that the nature of bandwidth use changes significantly when you use a tethered device. There are a number of studies of internet traffic which demonstrate that the need for a sustained data transfer rate goes up significantly as people watch more streamed video and engage in more large file transfers when using a larger format device.

          Increasing the cost of unlimited service and then doubling the amount of tethering allowed seems to me to be canceling out the beneficial effects in terms of network quality.

        • WW

          Sprint!

    • Guest

      their average revenue per customer has actually gone UP since the change to no contracts, so this move has nothing to do with maintaining a competitive edge or preventing profits from driving down. t-mobile has people fooled into thinking they are saving money by removing the subsidy but in reality they are paying more because of the eip’s.

      read about it here: http://online.wsj.com/news/articles/SB10001424052702304704504579429592281584078

      • philyew

        Again, I refer you to the Q3 and Q4 earnings statements where TM declared reduced ARPU for postpaid customers.

        • philyew

          Digging a little deeper, TM have reported a reduction in branded postpaid ARPU every quarter starting in Q3 21012 all the way through to the last earnings statement – six straight reporting periods.

      • fsured

        When they first made the move to take away the subsidized price of phones people were, and still are, saying it’s more expensive or the same price, cost more because you pay for the full cost of the phone, yada yada yada. Yes the phone bill does not go down because you are paying for the phone AT first. Before they started all these zero down promotions the customer did put up a “down payment” on the phone and broke the remaining balance over 20 months. The savings from doing this occurred in those last 4 months of an equivalent 2yr subsidized contract by the competitors. Since the phone is paid for in 20 months, or sooner if the customer wants to, the customer is only paying the price the service for that last 4 months in a 2yr peroid. That is the key point people and many articles fail to mention.

        Now that they are doing zero down promotions the full price of the phone is broken up into the monthly payments. To keep that payment amount reasonable for the high end phones those last 4 months are now factored in to the length of the phone payoff. In this the savings has gone away regarding monthly payments over a 24 month period. They are combating this by offering more “value” to the service cost.

        If a customer wants to drop their monthly bill price and save they still can with T-Mobile. It means don’t buy the $640 brand new phone or pay it off sooner. Or buy a midrange phone for $300 bucks for half the monthly payment and upgrade once a year. Mid-range devices are now capable of handling everything that is required in a smart phone. Two years ago, hell no. How about keeping a phone every 2yrs since that is when technology has advanced enough that an upgrade is really an upgrade in the software and hardware. If you Jump! all the time then expect your bill to always include the price of a handset cost.

        The options are there to keep a phone bill low but it is the customer who remains paying extra every month because they choose to. T-Mobile has given customers the tools to save on monthly service. It is a company and needs to make money. T-Mobile has given customers the tools to spend money on monthly service so that they make money.

    • epiales

      “Average monthly revenue per postpaid customer across the industry rose 2.2% to $61.15 in the fourth quarter, according to New Street Research. That is up more than $5 per user from the first quarter of 2010, when the same measure was at $55.80.

      New Street’s data adjusts for the fact that T-Mobile generally doesn’t subsidize phone purchases. In the past, carriers would pay hundreds of dollars of the cost of new phones then recover it over the life of a two-year contract by adding it into subscribers’ bills.

      With that embedded subsidy gone, monthly service fees are lower. Customers aren’t actually turning over less money, however, because they typically now pay off their phones in monthly installments using carrier financing plans. Mr. Carter, the T-Mobile CFO, said in an interview last month that the total amount the carrier is collecting from its customers on average has gone up.

      The high cost of smartphones and data plans means Americans are on average spending more every month on their phones.”
      from wsj yesterday

      • philyew

        But TM declared reduced ARPU in the recent Q4 earnings statement (and the Q3 statement)…

        “Branded postpaid average revenue per user (ARPU) decreased quarter-over-quarter by $1.50 or 2.9% to $50.70, primarily as a result of the continued rapid adoption of Value and Simple Choice plans, which deliver lower monthly ARPU due to lower service charges compared to bundled equipment and service plans.”

        Since the majority of post paid customers are now on the basic or 2.5GB Simple Choice plans, it follows that the changes in those tiers can only serve to reduce ARPU further. Perhaps only slightly, but needing to be offset nonetheless.

        I understand that you think TM are working some smoke and mirrors on this when you factor in the EIPs, but I really doubt that they are working to convince the world that their ARPU is lower than it actually is. It’s one of the indicators which influences stock price, and that announcement had a negative impact on the share value when it was made.

    • xmiro

      someone gets it

      My only wish is that they somehow break up voice from data like AT&T does with their $25 and $15 talk/text fees for those of us who are getting gouged on state cell phone taxes

      Do you know how they count multi-line accounts? As one user or as multiple users?

      • fsured

        In a way they do don’t they? Their basic plan doesn’t charge you for that 500mb of data. You can even request it not be active. Are you asking for lower price for voice/txt but have minute caps and no free 500mb of data?

        • xmiro

          no I’m talking about data and voice charges billed separately on AT&T vs lumped together on T-Mobile which causes you to pay more in taxes.

          In Florida, where cell phone taxes are above 20%,

          T-Mobile: ($50+$30)+taxes/fees+(2x$20 5GB)= $139.70
          AT&T: ($15+$15)+taxes/fees+$100 for 10GB = $137.88

          So because voice and data are separated on AT&T the cell phone taxes are just $7.88 for two lines vs $19.70 on T-Mobile

  • Jaxon

    Hi John Legere please add the Philippines for free international call..

    • Michael

      E-Mail him.

  • JaswinderSinghJammu

    It’s worth every penny. I used like 20gb last month. They better start showing people where the extra money is making difference before the end of 2014 or people will start noticing no difference and ATT might continue to lower prices

    • xmiro

      you’re getting your $20 unlimited data grandfathered in not sure what you’re complaining about

  • Nurdface Gamerhandz

    the $70 plan wasn’t altered from unlimited to 5 GB, there was always a 4.5 GB plan for $20.

    • philyew

      Surely, that was a mobile hotspot plan though, not a layer of Simple Choice.

      • Nurdface Gamerhandz

        Simple Choice 4.5 GB w/SMHS is the actual name of the rate plan. You can do I believe up to 12.5 GB. They’re not much advertised because most people don’t need them, but they do have advantages, especially for frequent hotspot users (for example, unlike the Unlimited + X SMHS plans (which also go up fairly high) they don’t hard cap your hotspot)

        • T-Mobile Cares

          Soo you can actually have up to a 20.5GB SMHS plan for $100.00.

        • BryanB

          yes. The only use would be if you needed that much tethering. Thats the only reason those plans exist along side the unlimited plans even though overlap in pricing.

      • BryanB

        @philyew:disqus
        There was a duplicate price tier
        Free: 500MB with 500MB Tethering
        $10: 2.5 with 2.5GB Tethering
        $20: 4.5GB with 4.5GB Tethering
        +$10 for each additional 2GB data and Tethering

        Unlimited Dataplans were their own branch
        ____________________
        $20 Unlimited with 2.5GB Tethering
        +$10 each additional 2GB tethering

        • philyew

          But in the context of the original statement I responded to, there was surely some confusion.

          The OP said “the $70 plan wasn’t altered from unlimited to 5 GB”, but the graphic used by Cam to illustrate the original article came from the TM press release and it clearly showed that the $70 tier of the Simple Choice plan was altered from unlimited to 5GB.

          The 4.5GB SMHS offering is part of a complementary package.

      • xmiro

        Im on a value plan and have 4.5GB for $20 as an upgrade option

        • philyew

          I’m not saying you can’t get that option with a Simple Choice plan, but the graphic used in the TM press release shows clearly that that the $70 plan is indeed altered from unlimited to 5GB. The 4.5GB SMHS option isn’t relevant to that question.

  • Still A Little Confused

    So, wait… im confused… for new customers is the $70/month plan being replaced by the $80/month and going away? I know existing people with the $70 are grandfathered, but if a new customer doesn’t want 5GB tethering, will they have the option to sign up for the original $70/month with 2.5GB tethering plan after these changes take effect??

    • philyew

      New customers after March 23rd wanting to pay $70 will get 5GB of high speed data and all of it can be used on a tethered device. Existing customers with the current $70 plan will continue to get unlimited high speed data with a 2.5GB limit on tethering.

      • Hurlamania

        current $70 plan will get 5gb tethering also

        • philyew

          I don’t think so.

          Here’s what Mike Sievert, the CMO, said in his blog:

          “Existing customers on the existing Unlimited 4G LTE plan (or who sign up before March 23 for it) will be able to choose to stay on that plan (by taking no action) or they can switch to the new version WITH MORE TETHERING for just a few dollars more per month.” (my emphasis)

          The only way that the new Unlimited plan can have more tethering than the old Unlimited plan is if the tether allowance on the old plan stays at 2.5GB.

  • Elier Ruiz

    A $10 price increase to $80 for unlimited talk/text/web is not bad compared to the other cellphone companies.

  • Mystery Man

    Wait so the 5 gb of data with 5 gb of tethering means 10gb total data? Or the tethering subtracts from your total 5gb?

    • xmiro

      no. $20 for 5GB data means you have a total of 5GB to use.

    • fsured

      That is actually a good question and glad someone has the answer. With the unlimited plan they keep track of that 2.5gig that is used in tethering. But again it’s unlimited so it isn’t subtracting from an allotment. Thanks for asking as others may be confused.

  • xmiro

    network investments, but also don’t forget the customers who are downloading tens of gigabytes of data on the unlimited plans by using all kinds of tricks and abusing the service

  • conservative_motorcyclist

    there is a typo….the new $80 plan includes 5GB of tethering along with unlimited 4G data through your phone. This is double 2.5GB of tethering offered by the old $70 a month plan. The new $70 a month plan includes 5GB of 4G data that you can use either for tethering or through your phone.
    so another way to do the math is old $70 a month unlimited data + 2.5GB tethering add-on for $10 = $80.

    • nuff_said

      no the $70 plan gets u both 5gb of data & 5gb of tethering

      • Nuff_said

        my bad im wrong, it states either or, so either 5gb of data on phone or 5gb of tethering. sorry

    • Hurlamania

      The old $70 plan will get upped to 5gb tethering for free and have stateside international texting

  • http://threestarsmarketing.com NateMaas

    As a long time
    T-mobile customer, I am very happy to hear that they are actually investing in
    their infrastructure. Last year I went on two business trips, and both times,
    my data connection was horrid at best while on the road. I have no problem
    paying $10 more per month considering that T-mobile is already cheaper than the
    competition by a wide margin.

    Next,
    T-mobile has to start rolling out some new Windows 8 phones for people like
    myself who want a business friendly phone that allows for a seamless transition
    to and from my desk.

    • vrm

      yeah, business friendly- blackberry or palm pilot, anyone ? Or worse, windows phone ?!

  • Guest

    it’s not hard to understand this guys!

    Old Based on Ind Plan w/ High Speed Data vs New for both existing and new customers

    Before March 23rd, Only $70 Plan will be Grandfathered for Truly Unl Data w/ 2.5GB of Hotspot

    OLD: $50 = 500MB w/ Shared Hotspot NEW:$50 = 1GB w/ Shared Hotspot

    OLD: $60 = 2.5GB w/ Shared Hotspot NEW: $60 = 3GB w/ Shared Hotspot

    OLD: $70 = Unl Data w/ 2.5GB of Hotspot NEW: $70 = 5GB Data & Shared Hotspot

    OLD: $80 = Unl Data w/ 4.5GB of Hotspot NEW: $80 = Unl Data w/ 5GB of Hotspot

    • Guest

      I meant After March 23rd 2014***

    • Hurlamania

      incorrect The Grandfathered $70 plan will get 5gb hotspot

      also the is no old $80 plan,

      • Sean

        There is currently, and has been since the unlimited plans were changed to include tethering, an unlimited $80 plan that included 4.5GB of hotspot usage. You sir are wrong. I work for TMO in case you were wondering how I would know.

        • Axel Ramtin

          Mr. Brown… your life is sad… :-(

      • philyew

        You keep claiming the grandfathered $70 plan will get 5GB tethering, but I’ve already quoted the Chief Marketing Officer in reply yesterday who said:

        “Existing customers on the existing Unlimited 4G LTE plan (or who sign up before March 23 for it) will be able to choose to stay on that plan (by taking no action) or they can switch to the new version WITH MORE TETHERING for just a few dollars more per month.” (my emphasis)

        Once again, in the hope you will stop adding to the confusion, you can only get more tethering with the new plan option because the grandfathered plan remains at a 2.5GB limit.

        In case you think the CMO got it wrong, here’s what the official press release said:

        “Customers currently with unlimited 4G LTE data will continue to get unlimited 4G LTE data with no change in price, or they can opt for the new unlimited 4G LTE option with twice the tethering.”

        It says clearly, you have to opt for the new unlimited plan option to get “twice the tethering”.

        To quote something you yourself said: “this thread is wild with confused people.” Unfortunately, right now that means you.

        • Hurlamania

          if you work for T-mobile i suggest you go to your companies website as it states current $70 unlimited will go up to 5gb spmh on the 23rd

          and has been stated by others as well on other posts as reading that info on the t-Mobile site…

        • philyew

          I apologize, there is indeed a statement on the TM shopping site that directly contradicts what is said by Sievert, and what is stated in the press release.

          “Sign up today and double your 4G LTE tethering (Smartphone Mobile HotSpot). Beginning March 23, 2.5GB becomes 5GB, for the same price.”

          You will agree, I hope, that the statements are entirely contradictory.

          The confusion is therefore being caused by TM themselves, not people in this forum.

          People making decisions about the timing of their choices regarding unlimited service, based on any one of these statements, need to be aware that there may be an issue when the 23rd rolls around.

        • philyew

          Well, it looks like someone at TM has been keeping up with this issue, because the description of the $70 Unlimited plan on the TM Shop site has changed today to read:

          “Unlimited 4G LTE data with 2.5GB of 4G LTE tethering (Smartphone Mobile HotSpot) available until March 23rd.”

          Unfortunately, that makes the blog by Mike Sievert and the comment in the press release correct.

          If anyone is annoyed about this because they signed up for the $70 Unlimited plan in the last week with the expectation that they would be getting 5GB of tethering automatically, they might want to contact TM Customer Support with these two quotes from the TM Shop site and let them know that they expect TM to honor their advertising.

        • Hurlamania

          here is the original post i saved the page for just this type of BS http://t.co/33vri2ptJq

  • hx516

    wow really! your uncle james is a lucky guy!

    • thepanttherlady

      LOL

      • Stone Cold

        :) Hello my friend. When are you getting the Z2?

        • thepanttherlady

          Hello. :)

          I pre-ordered it from Clove about two weeks ago. Once they confirm pricing (right now it’s listed for just slightly less than my Z1) and send me an official invoice I’ll pay for it and anxiously await its release. :) Looks like right now it’s supposed to be released around April 7th.

        • Roger Sales

          You are really big on the Xperia brand, huh? my friend just got a ZS1 and after 5 months of being on the iphone I can honestly say my brain has forgotten what android feels like because I had no idea what I was doing – at least it felt like that because the button setup was really confusing for me.

        • thepanttherlady

          It does seem that way, doesn’t it? :) Most of my recent phones were Samsungs and I just wanted something different. When I saw the XZ I really wanted to try it. Being purple was an obvious plus for me. I bought an unlocked one on Ebay and truly enjoyed it. The XZ1 (not the XZ1S) was even better than that and now I’m excited to get the XZ2 in my hands. I have tried the Nexus 4, Blackberry Z10, and LG G Flex other than Samsung and Sony but keep going back to Sony. I almost didn’t pre-order the XZ2 because I feel like I have a phone now that I like. The new screen and front facing speakers did me in though. :|

        • thepanttherlady

          Woke up to an invoice from Clove this morning…Yay!!! Paid for my phone (it was indeed less than the Z1) and accessories and it should be in my hands the 2nd week of April. =D

  • Guest

    So how much for truly unlimited?

    • thepanttherlady

      $70 if you sign up before March 23rd, $80 after.

  • Caffeine

    Question!
    So I need to add a new line but don’t need it until June.
    Can I add a new line now before this change and put it on “Hold” and reactivate then?
    What would be the easiest way to go about this?
    I rather not pay an additional $10 dollars a month. THANKS!!

    • Jesse

      Call customer service and ask about a seasonal suspension. That may or may not prevent, or at least reduce, monthly charges until you begin using the line.

  • Laststop311

    I’m glad im on the 70 dollar unlimited plan already. Who needs the extra tethering data when u can root ur phone and dodge the monitoring of your tethered data.

  • shatter

    Cool I’ll keep my $30 a month plan with 5GB of data, I use Google hangouts for unlimited calls for free and I have PDAnet for tethering. I never even use more than 2-3GB since I have 100mbps at my house and I almost always get WiFi anyway.

  • Tyler Kirchman

    They should have raised their throttling speed to at least .5mbps and calling it 3g. Saying you get slowed down to 3g sounds better for marketing and won’t impact there towers.

  • zx6guy

    This is a perfect example of how no contracts can backfire. Now I’m paying 10 clams a month more (unlimited) for basically no network improvements. I’d like to point out the press release makes no mention of any specific upgrades only that they “… want to be paid…” A commitment to replacing the thousands of square miles of 2g would have been nice.

    • bob90210

      No you’re not. If you have unlimited before, then your price will not go up. If don’t have unlimited they you’re not paying for it. Which is exactly the same as if you had contract.

      • zx6guy

        I recently say a quote that went some like, “If you can’t tell if they’re a troll or stupid the answer is probably both”. I can’t tell which you are.

        Yes, if you had unlimited before you’re right the price doesn’t automatically go up. What you didn’t say because either you don’t understand or are a troll is if you make no changes the allotted data goes down to 5GB. If you want unlimited data you need to pay $10 more a month or $80.

        If there is any doubt I recommend you re-read this website’s post from the 7th on topic. The quote below should sum it up for you if you’re too lazy.

        “Now, if you’re an existing $70 unlimited customer, you don’t get automatically switched to the new plan. You can opt in to pay the extra $10 per month, but only if you want to”.

        • thepanttherlady

          http://www.tmonews.com/2014/03/50-simple-choice-plan-to-include-unlimited-international-texting-double-4g-lte-datatethering/

          Please, know what you’re talking about before calling someone names. Those currently on the $70 unlimited plan will keep the same plan-unlimited for $70 unless the CHOOSE to opt for more tethering and pay $10 more.

        • zx6guy

          Mistakes were made. My apologies. I read the actual press release and it was more clear then this article and the one I referenced above. A look at the comments reveals I’m not alone on this. Also, my comment on the 2g stands.

        • Trollsaretrolls

          Awkward….

        • thepanttherlady

          And from their press release:

          Simple Choice customers will automatically get the added benefits of these program updates, so there is no need for existing customers to change anything about their current services or plans. Customers currently with unlimited 4G LTE data will continue to get unlimited 4G LTE data with no change in price, or they can opt for the new unlimited 4G LTE option with twice the tethering.

        • philyew

          Sorry but you are wrong. If you are on the $70 plan now and do nothing, it will continue as-is indefinitely. There was a period where the TM Shop site was promising an automatic upgrade to 5GB tethering, but that was a mistake and had been corrected today.

        • zx6guy

          This was already addressed below.

        • philyew

          Yes, I was trying to delete the comment after I read that.

        • Hurlamania

          It shouldn’t matter if it was a mistake, they had it up there nearly a week. I think they changed there minds.

          here is the screen cap from the saved web page i have pass it around post it places if you can spread the word of false advertising and failure to honor their words.

          http://t.co/33vri2ptJq

        • philyew

          I have already contacted TM expressing the view that they should honor the expectations of anyone who signed up for the $70 plan during the period that those words appeared on their web site.

          Let’s be clear though; the only people to whom they are beholden are the people who made a conscious choice to sign up because of that advertising statement, and they haven’t yet failed to honor their words to those people.

          While the advertising can be held to be false, even if an honest mistake, it’s hard to put a meaningful value on the extent of the harm resulting because it is actually trivial – a matter of a few dollars – in the vast majority of cases.

          Unquestionably, the CMO’s blog and the official press statement, both published on March 7th, are authoritative evidence that their intention has always been to grandfather the $70 unlimited plan as-is.

          I can state with 100% certainty that the only reason the web site changed today was because of the debate that has been going on here.

        • Hurlamania

          Well I disagree on the point that only people who signed up should be beholden to get that honored. The fact is nothing was 100% clear or addressed as to the full effect on current $70 plans completely they just said you can keep your rate.
          I tried to get a clear answer from T-Mobile day 1, because every other current plan was getting added data at least 500mb. the t-Mobile rep on facebook posted that we would also get 500mb for a total of 3gb SMHS. but not to long after that the posted on their site that the $70 plan would get 5gb on the 23rd as an enticement to buy before that date for sure but implies that anyone on that tier would get the bump as they are referring to the plan as a hole. they wouldn’t add a 3rd $70 tier one with 5gb shared, one with unlimited and 2.5 and one with unlimited and 5gb for only people who signed up in those 6 days is ridiculous to think..
          anyone on a current $70 plan who read that would be reasonable to see and believe that they would get 5gb SMHS added to their plan on the 23rd. Adding it would have been the right thing to do from the start and i applauded them for doing it when the posted that. for whatever reason they decided not to, if thats what they decide because they won’t give a strait answer. but for whatever reason they stated on their site for 6 DAYS that $70 plan would get 5gb SMHS on the 23rd so honor it, it doesn’t hurt them to add the data everyone else gets some no one is going to pay $10 just for 2.5gb of SMHS
          most people hack it anyway. it’s the honorable thing to do.
          i am all about honor and keeping your word, my word is golden.
          it just makes them look bad and more carrier than uncarrier

          i have a few issues with T-Mobile and I’ve let them slide on it but this Im not letting go of, I draw the line on this situation.
          they owe me about $120 in referrals i never got. i didnt make a issue of it, i Pay for more than I use but I do because i support the company. previously I had unlimited old plan when they decided to stop it and throttle it at 5gb high speed i didn’t complain like thousands did.
          bottom line they advertised it for days i read it i was led to believe i was going to get that and they should honor that.

        • philyew

          We’ll just have to agree to disagree. For those who didn’t see that sentence on the web site, it was perfectly clear from the press statement and blog post that they didn’t plan to do anything but grandfather the existing $70 unlimited plan as-is.

          If it was an enticement to buy, then those who bought should get the terms honored. They don’t need to do anything special in terms of defining a plan for them. All they have to do is give them the new $80 plan and a $10 monthly credit.

          As far as those on the existing plan who did see the incorrect message, they had their hopes built up for a few days and were then disappointed. It didn’t cost them anything. I agree that they aren’t getting anything out of the change, but neither are millions of other TM customers who aren’t on the Simple Choice plan yet. There have always been those who gain and those who don’t in all the Uncarrier changes.

          I personally think they shouldn’t have introduced the new level at all this time, but they did.

        • Hurlamania

          well Thats the fault of the people that chose not to be on simple choice, they can change anytime I am i chose to be and I was led to believe I was getting 5gb on the 23rd not to mention jenna on facebook swore it was going to 3gb. the press release did not confirm nor deny any info thats why i started looking and asking questions.
          It’s their choice. I have about 8 consumer protection sites bookmarked including the public utilities commision and I give T-Mobile until tomorrow to change their stance and then I will begin filing complaints.
          I will also continue to post on twitter and facebook about this everyday for as long as i can type…

          i say add it and let sprint sort it out… LOL :)

        • philyew

          Errr…OK. Good luck.

        • Hurlamania

          who needs luck when you have the truth and the proof. The may not honor this statement, “Beginning March 23, 2.5GB becomes 5GB, for the same price.”
          That statement was a separate sentence from the sign up today and double your tethering.
          each one aimed at 2 different people, possible new subscribers and current subscribers.
          I don’t see how you don’t see that.

        • philyew

          I’m not arguing about what it said. I’ve already agreed that they need to honor the deal for those who spent money based on the wording.

          I just don’t see what you’ve sustained in financial loss or damages that warrants them giving the deal to you. Since, if I understand you rightly, you have done nothing at all different other than built up some expectations that have now been disappointed…

        • Hurlamania

          if they proclaim I will get it and I expect to get it based on their advertisement / promotion of a product. it isn’t right to say we decided after 6 days of our site telling you this you get nothing now, too bad for you lets ignore it and not address it. it’s BS plain n simple. and oh btw everyone else gets more SMHS…

          ive done a lot to promote and prop up this company and they want to be un sportsman like over 2.5gb of SMHS to it’s loyal customers.

        • Daniel

          Do you file complaints on EVERY marketing mistake a company ever makes? Even if it is for a minute? No? Why not? Just as much of an issue as this… Did you sign up with T-Mobile or change your plan specifically for this? No? Then shut up.

    • Jarred Sutherland

      But you have unlimited, which is not offered by anyone else. No, I am not forgetting sprint, they are just useless so I don’t include them in the unlimited thing. You have to pay to play .. we all know that.

  • Winski

    The new $80 plan rate IS ONLY FOR NEW CUSTOMERS !!! EXISTING un-limited customers are grandfathered in at $70 but don’t get the 5GB hot-spot, only the original 2.5 GB…

    • Hurlamania

      getting the 5gb hotspot was advertised by T-Mobile for nearly a week they just removed that wording today. I am trying to get an answer on twitter and facebook about them honoring it but they keep avoiding the question and photo with stock answers and redirects…

      • Winski

        Smoke and mirrors ….. The folks I got the info from about 2.5 g on the grandfathered plans are usually pretty reliable.

        • philyew

          It turns out to be true that they intend to limit tethering to 2.5GB on the grandfathered $70 unlimited plan, but Hurlamania is equally correct that they advertised an automatic increase to 5GB for the best part of a week on the TM Shop site.

          “Sign up today and double your 4G LTE tethering (Smartphone Mobile HotSpot). Beginning March 23, 2.5GB becomes 5GB, for the same price.”

          That was quietly changed this morning to reflect the correct policy.

        • Josh

          I pointed this out a few days ago on the T-Mobile support forums.. that the wording showed 2.5GB would be doubled to 5GB of tethering for customers who signed up for the 20 dollar unlimited plan. I also made a screen shot. T-mobile should honor this.

        • TMOFreak

          who cares? tmobile has been bringing so much creativity to the table! unlimited international text and data and unlimited text to virtually anywhere? is there a carrier beside tmobile that does that?

        • Hurlamania

          well when T-Mobile post it on their website you would think that is reliable, and prior to that I was told They would get 3gb by T-mobile on facebook, then they posted on their site it was 5gb no it’s 2.5 again.

          http://t.co/33vri2ptJq that is a link to the screen cap from the saved web page i have…

          they refuse to admit their mistake and honor it or just don’t know what they are doing…

    • philyew

      Existing customers can opt for this plan when it is formally launched on the 23rd, if they want to up their tethering limit to 5GB.

      • Winski

        Right, and pay $80 not $70 for the rest of the service… NOT.

        • philyew

          Sorry, I was addressing your ” ONLY FOR NEW CUSTOMERS” comment, just to clarify that it is open to existing customers as well in case the comment was misunderstood.

      • millenialkid

        Hmm.

        Well, I’m more apt to change in the upcoming months. I live close to one of FCC Cellular (850MHz) license boundaries. That boundry doesn’t exist on PCS and AWS (1900/1700MHZ). Because of this, AT&T’s cellular coverage is crappy, but 1900MHZ companies like T-Mobile and Cricket work better.

        If AT&T can covert the Cricket CDMA towers to GSM and LTE, I’ll probably consider Cricket/AT&T.

        The main reason being is T-Mobile (which I’ve had for 8-10 years) is dropping calls, and I’m frequently getting dead air. It didn’t used to do in the past; it’s getting worse. I think with all the MVNO contracts T-Mobile has, like Target, they’ve oversold their network; and the voice is getting unreliable. I have a friend who had cricket, and he’s been happy with it. But whenever someone with AT&T visits, it’s patchy.

        • philyew

          As there are less than 10 million wholesale customers across the whole TM network, your issues may be related to several other reasons, rather than network overloading. The significant news this week is that TM have announced a plan to introduce LTE throughout their 2G network. This will be achieved by activating AWS licenses that haven’t been used yet.

          It will take until the end of 2015 to complete the program, and – until they get more sub-1GHz spectrum – there will be gaps in the rural areas, but this is potentially very good news for customers in your situation.

        • sw

          8-10 years as a customer. I would expect they would want to hear the issues you are having.I would call and get them to get a ticket open with engineering, if you haven’t already. If you have, it would not hurt to continue trying. They will eventually locate the issue as long as it’s not the phone. Recommend testing another handset to see if the same issue happens. Give them the location of the issue..

    • James Cook

      if i could show you my bill, i pay $70 and get 5GB hot spot…..started my service in mid-November.

  • leo

    Lame.

  • http://navas.us/ John Navas

    Translation: We’re losing money from buying market share, and we can’t keep that up, so since we don’t really want more unlimited plan subscribers, that price goes up.

    Unlimited Simple Choice was already more expensive than unlimited Prepaid, $80 ($70 plus taxes and fees) versus $70, and now unlimited Simple Choice is even less competitive, $90 versus $70.

    • John

      T-Mobile is still a good value for the money. At&t and Verizon don’t even offer unlimited data for any price. Sure the price increase stinks, but $30 is still a great value for unlimited high speed data. In addition if you sign up for the $20 unlimited before March 23 than you’ll lock in your price of $20 and be grandfathered in.

      • http://navas.us/ John Navas

        For now. T-Mobile killed Flex Pay and forced those customers onto Prepaid. There’s likewise no guarantee the $20 unlimited price will continue.

        • thepanttherlady

          When that migration happened, my oldest daughter went from Flex Pay to a postpaid Value plan.

        • http://navas.us/ John Navas

          Flex Pay subscribers could of course switch to other plans, but migrations by T-Mobile were to Prepaid AFAIK (as in my case), and Value plans are more expensive than Flex Pay or Prepaid.