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Why T-Mobile’s All-In Pricing Strategy Could Pay Off | Forbes

More Customers Could Migrate Towards The One Plan, Offsetting Fee Revenue Losses

The T-Mobile One unlimited plans, which T-Mobile launched late last year to replace its tiered data plans, were priced slightly higher than the company’s existing base plans. For instance, a tiered plan with 6 GB of data and 4 lines cost $120 versus about $160 on T-Mobile One. Overall, the carrier now expects the gain in new customers on the One plan and migration of customers from tiered plans to the more expensive One plan to offset the loss of fee revenues, potentially proving neutral for its postpaid phone ARPU.

Improved Brand Positioning Can Help Postpaid Adds

T-Mobile already has a reputation of shaking up the wireless status quo, taking the lead in scrapping wireless service contracts and eliminating overages. The move to eliminate taxes and fees will makes will T-Mobile appear more transparent and consumer friendly, improving its brand perception further. This could help the carrier win over subscribers from rivals such as Verizon and AT&T, who recently increased pricing on postpaid plans, while contending with feature phone attrition. T-Mobile has led the industry for 12 consecutive quarters in terms of postpaid phone adds and there is a possibility that the trend will continue in the near-term as the move helps the carrier further differentiate itself.

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Why T-Mobile’s All-In Pricing Strategy Could Pay Off.