Verizon Unlimited, T-Mobile Upgrades, Sprint Drops Prices Through Floor

Update: T-Mobile responds to Sprint & Verizon price cuts but adding additional features to its fixed rate plan. Competition continues to benefit the consumer, but net margins will be/are hovering close to or below zero for some carriers - T-Mobile responds to Verizon by improving its own unlimited data plan.

In "The Slow Death of the Deadbeat Carriers, pt 4" I reminded all about the price competition kicked off by the upstart T-Mobile (TMUS) that reconfigured the US wireless industry.

T-mobile eliminated plan contracts, eliminated handset financing (at least usury style financing) and made the unlimited data plan a mainstay. Look at what those changes did to T-mobiles subscription business

Of course, like any truly economic market, gaps and inefficiencies tend to get filled and rectified. The T-Mobile net adds came directly from AT&T (T), Verizon (VZ) and Sprint (S). Thus... Sprint announced it would offer  five unlimited lines for $90, but only for a year.

In comparison, you'd have to pay $180 a month for five unlimited lines on T-Mobile, or $270 a month for AT&T, and now apparently Verizon is dropping prices significantly, reference "Verizon Brings Back Unlimited Data Starting At $80/Month"...

4 lines $45/line
3 lines $54/line
2 lines $70/line
1 line $80/mo.

So, T-Mobile, the original disuptor shaves pricing once again, throuh fee inclusion...

So, what does all this mean? Well, T-Mobile reports Q4 2016 results tomorrow, but until then...

Be aware there is a lot more to this story... A proponent that makes me think one of carriers may bold and merge (by force).

Disclosure: None.


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Craig Richards 3 years ago Member's comment

How do you feel #TMobile's #earnings impacted your outlook? $TMUS $S $VZ $T