T-Mobile US targeted cost-conscious consumers with the introduction of a new $60 unlimited tariff focused on the basics of talk, text and data without the extras.
The new plan, called T-Mobile Essentials, is $10 cheaper than a single line on the operator’s standard T-Mobile One unlimited option. The price drops to a monthly fee of $30 per line for a family of four.
However, the Essentials plan doesn’t include features including global access, free Netflix service and in-flight Wi-Fi which are bundled into its higher tier. Video quality on the plan is limited to streaming at 480p and users will only have access to 3G speeds when using mobile hotspot capabilities. As with its other unlimited plan, T-Mobile said Essentials users could experience slower speeds after 50GB of usage each month.
But on T-Mobile’s end, the play is also likely part of its strategy to fuel continued growth by reaching under-penetrated markets, in this case price-sensitive consumers who primarily use their phones domestically and don’t need hotspot data.
On a recent earnings call, COO Mike Sievert touted the success of the operator’s recent effort to target military personnel and consumers aged 55 and over, noting those segments were “nice contributors” to T-Mobile’s net addition results.
He added as the operator expanded into new areas with its 600MHz airwaves, it found “pent up demand” for its service and plans to target smaller towns with additional expansion efforts.
Consumers can sign up for the Essentials plan starting 10 August.