T-Mobile plans to pivot away from unlimited data, says CFO Braxton Carter


T-Mobile has touted its unlimited high-speed data plan in the past, and it’s currently running a promo that’ll give you four lines of unlimited data for $150 per month. According to CFO Braxton Carter, though, T-Mo is pivoting away from unlimited data.

Speaking at a recent investor conference, Carter said that T-Mobile is sticking to its strategy of moving away from unlimited data. “We have and continue to have a strategy of pivoting away from unlimited, and again I’ll point to the $25 price increase, two times over the last two years.” T-Mobile increased the price of an unlimited high-speed data plan by $10 in early 2014, then bumped it again by $15 at the end of 2015.

Carter also touched a bit on the unlimited data plan promo that I mentioned earlier. “In regards to our unlimited promotion, it is a promotion, it’s very short time. We pivoted away from using unlimited as our primary promotion mechanism in the prior year and part of what we did with Binge On again was another substantial increase in the price of unlimited.”

During the interview, Carter explains why T-Mo launched an unlimited data promo and how it relates to Binge On. He explains that with Binge On, unlimited customers don’t really use more data, but that there is a “not insignificant increase” in data usage from those with a bucket of high-speed data. He goes on to say that “it’s less costly, ultimately, when you’re looking at network-adjusted economics, which we certainly do, to have that type of promotion into the marketplace.”

Of course, T-Mobile still offers an unlimited high-speed data plan right now, and folks with older plans are still being grandfathered. If T-Mo is indeed pivoting away from unlimited data, though, we could see another price increase on new plans or a similar action in the future.

Via: DSLReports
Source: T-Mobile Investor

Tags: ,