T-Mobile CEO John Legere is at it again with a call for AT&T and Verizon to abolish overage charges on monthly mobile data plans. This follows a move last month in which T-Mobile introduced its new “Un-carrier for Business” plan priced at a flat $15 per phone line per month for firms with at least 100 lines, and $10 per line for higher volume. These plans also include unlimited talk and text, as well as 1GB of data per line.
In addition to the basic 1GB of data included per line, T-Mobile will offer another 2GB for $10 a line or unlimited data for $30 a line. There will also be a pooled data option for businesses that allow work groups to share data; that option starts at $4.75 per gigabyte for a 100GB minimum, but drops to $4.25 per gigabyte for a minimum of 1TB.
While some may dismiss this as a publicity stunt, Leger’s “un-carrier” strategy has driven the firm’s growth with significantly more new subscribers reported for 2014. Now, as the results for the first quarter of 2015 are due to be released, financial analysts at Wells Fargo expect T-Mobile to continue with more subscriber additions than either AT&T, Sprint and Verizon.
The biggest obstacle that T-Mobile must overcome centers on its network quality. Enterprises will not make a switch for a lower price if the service is unreliable. With T-Mobile’s new enterprise prices as low as they are, telecom managers should perform small-scale tests on the carrier’s service quality. While it may be too risky to shift all the business to T-Mobile, it may make sense to shift some business in selected areas where the service quality is good. This approach will help bring more competition and lower prices to enterprises.
Who knows? If enough enterprises begin to use T-Mobile, AT&T and Verizon may even consider eliminating overage charges on monthly mobile data plans.