T-Mobile to launch low-cost prepaid plans - Mobile World Live

T-Mobile to launch low-cost prepaid plans

22 MAR 2022

T-Mobile US detailed plans to launch more affordable prepaid tariffs under a new consumer brand, targeting customers which do not consume great amounts of data.

The Connect by T-Mobile brand will offer plans priced from $10 to $35 per month, and include free caller ID and an app that blocks spam calls. The plans will be available from 25 March in the operator’s own stores and multi-carrier retailers across the US.

Connect by T-Mobile tariffs allow customers to use their own devices, but won’t include discounted new phone offers that come with the operator’s other tariffs. There’s a one-time SIM activation fee of $10.

The services offer a fixed amount of data each month, with top-ups available for those who exceed the limit.

T-Mobile might also throttle data rates during peak periods.

The service isn’t available to business customers and there is a limit of five lines per customer.

Roger Entner, founder and lead analyst with Recon Analytics, noted the Connect by T-Mobile plans are a more aggressive extension of an AT&T announcement a few weeks ago which included customers using their own 5G devices for its Value Plus plans.

“What is important here is this is T-Mobile branded, not Metro PCS branded, which is a traditional  prepaid plan,” Entner stated. “So this diminishes the brand positioning between the two brands. Now you’re moving T-Mobile further down downstream.”

By charging $10 per month, Entner stated the Connect by T-Mobile plans were ARPU dilutive when its previous positioning was about increasing the metric.

He also noted the plans aren’t eligible for the Federal Communications Commission’s Affordable Connectivity Programme, which a T-Mobile US representative confirmed.

Entner noted the Connect by T-Mobile plans, particularly the $35 plan, could enable the operator to upsell those customers from prepaid to post-paid going forward.

T-Mobile’s new plans could also fill a void on low-end tiers if Verizon pushes its Tracphone customers onto more premium tariffs, while also impacting Dish Network’s Boost Mobile service, Entner added.



Mike Robuck

Mike Robuck is the U.S. Editor at Mobile World Live. He joined the Mobile World Live staff in February of 2022. Prior to joining GSMA, he was editor of FierceTelecom and of Light Reading’s Telco Transformation microsite. He has a...

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