T-Mobile to Increase Monthly Customer Fees from 10th June

T Mobile home phone service
With another round of news, the growing mobile and home phone service provider – T-Mobile – has made it to the headlines, again.

According to the T-Mobile, the company has incurred certain losses in the past and is carrying them forward till the present day. Thus, to recover from these losses, T-Mobile has decided to increase some monthly customer fees, the next month.

The Announcement

The mobile and prepaid phone service provider made an announcement recently, to increase certain monthly fee charges for its customers. The increase in the fees is going to affect a number of T-Mobile customers.

With effect from 10th June 2017, a few select T-Mobile accounts will face an increase in the Regulatory Programs & Telco Recovery Fee.

The increase in the fee would be from $2.71 to $3.18 for the voice lines and from $0.98 t0 $1.16 for the data lines.

The customers using the T-Mobile ONE Taxes & Fees Included plan are, however, unaffected by this change. But all other customers of the prepaid phone service provider, come in the loop.

As per T-Mobile, the former customers of the SunCom Wireless were exempted from this fee but now, with the increase in the fee, these customers are also going to pay it. It is only if they’re not using the T-Mobile ONE Taxes & Fees Included plan.

SunCom is a wireless carrier based in Pennsylvania that was acquired by T-Mobile in 2008 for an amount of $1.6 billion.

According to T-Mobile, a growing mobile and home phone service provider, the changes in the fee structure for its services are based on the cost structure of its third-party services and that of the government program compliance. The changes are said to be a part of T-Mobile’s standard price adjustments.

The company said that it regularly reviews the related compliance costs of its services and adjusts the customer fees in accordance with these changes, charging the customers accurately as per their choice of plan.

The T-Mobile officials said, “This is not a government tax, rather a fee collected and retained by T-Mobile to help recover certain costs we have already incurred and continue to incur. It includes: 1) Funding and complying with government mandates, programs, and obligations, like E911 or local number portability ($0.60 of the total charge for voice lines and $0.15 for data only lines), and 2) Charges imposed on T-Mobile by other carriers for the delivery of calls from our customers to theirs, and by third parties for certain network facilities and services we purchase to provide you with service (Up until 6/10/2017, it will be $2.11 of the total charge for voice lines or $0.83 for data only lines; From 6/10/2017 on it will be $2.58 of the total charge for voice lines or $1.01 for data only lines).”

Thus, the increase in the customer fee by the home phone and prepaid phone service provider must not be mistaken for the government taxes or fees as the money is to be retained by the service provider, itself.

In a Nutshell

T-Mobile has planned to increase certain monthly fees for its customers, implementing from June 10. The idea behind such increase in the customer fees is to make up for the losses being continuously incurred by the mobile and home phone service provider.

A number of customers will be affected by this change, except for the ones that have opted for the T-Mobile ONE Taxes & Fees Included plan. So, we’re to see if T-Mobile has made its way to healing from the previous losses or to incur more of them.

Has Verizon Really Paid a High Price for Straight Path Acquisition?

Verizon Wireless

There has been a tiff between two telecommunication giants – AT&T and Verizon, as to who was going to acquire the spectrum holder, Straight Path Communications!

And quite recently, the decision has been made by Straight Path and it was decided to be acquired by Verizon, one of the leading telecom companies, known for its quality prepaid phone service in the United States.

The deal has been sealed for an enterprise value of around $3.1 billion offered by Verizon, against its rival AT&T that made an offer of $1.6 billion, the previous month.

The acquisition has been made as an all-stock transaction by the renowned wireless and low income phone service provider. The buzz has spread within the telecommunication industry like wildfire as most experts consider the deal as a ‘huge sum being paid for a tiny spectrum coverage’.

So, has Verizon made an impulsive decision in buying Straight Path? We don’t think so! Let’s have a look, why:

The Acquisition

Straight Path Communications is a spectrum owner with US spectrum licenses for 39 GHz bands, counting to 735 and 133 licenses for the 28 GHz bands. Thus, the company has been named as one of the largest spectrum owners for high-frequency mmWave (millimeter-wave) spectrum.

This spectrum is seen as an extensive resource by the next generation 5G broadband service providers and with this realization, AT&T, a behemoth prepaid phone service provider, started the offer for the acquisition.

At the time of the offer, Straight Path’s stock price was $36 when AT&T offered to acquire the startup with an offer of $95.63 per share.

After AT&T, Verizon secretly sealed the deal through an offer for a whopping price of $184 per share.

With a bid of five times the stock price, the decision of acquisition by the mobile and low income phone service provider has been under a number of doubts.

How is Verizon Going to Benefit from the Deal?

We must not base our judgments on the high-priced bids being offered by Verizon. Straight Path is the owner of a huge amount of 28 GHz and 39 GHz spectrum throughout the country.

After adequate calculations, it has been noticed that the bid amount seemed minuscule in front of what is being paid to cover the potential customers through spectrum licenses used by Verizon for its 4G LTE services. Thus, when calculated from the service point of view of the huge prepaid phone service provider, the cost of spectrum turns out to be 1.7 cents for each person. Thus, the deal wasn’t much of a stretch for Verizon but it was a smart and intelligent decision.

In a Nutshell

Verizon is a renowned mobile, wireless, and low income phone service provider that has been facing tough competition from many other telecom companies emerging in recent times. With the idea of broadening its 5G broadband services, the telecom giant has acquired Straight Path Communications, a spectrum owner.

The acquisition amount might seem huge and reckless but when calculated closely, the deal is going to bring great profits to the prepaid phone service provider. With spectrum coverage throughout the country, Verizon is surely seeking growth with a winning strategy!

Sprint’s Magic Box to Boost 4G LTE Signals in Offices and Homes

Sprint Magic Box

When it comes to 4G LTE wireless services, most network providers fail to provide a great signal indoors. Thus, at homes and offices, we face certain network glitches like the loss of network, weak network signals, and slow connections.

However, Sprint – the mobile network services and home phone provider – has acknowledged this source of pain to its customers. The growing telecommunication company has introduced what is claimed to be the world’s first all-wireless small cell called the ‘Magic Box’.

The new and innovative device is said to boost the wireless data signals inside buildings, providing stronger network coverage.

Sprint Magic Box 

Sprint has been striving to make it’s presence in the market stronger for a long time now. And things are unfolding pretty well. So much so that the cheap phone service provider is proving out to be a strong competitor and also a threat for telecommunication giants like Verizon with its wireless services.

The Magic Box, introduced by Sprint earlier this month, is a shoebox-sized plug-and-play device that is intended for wireless data connectivity to speed up when used indoors.

The device is designed for a use in buildings, homes, offices, and even while traveling.

Though Sprint wireless customers don’t face many troubles with data speed, the Magic Box is ideal for areas where the signals are still weak or interrupted. With this device installed in your building, you can boost your upload and download speed by around 200%.

The best part about the Magic Box is that you just need to invest in the device once and use it for free for as long as you have it. Yes, no costs! The Magic Box runs for free.

Also, the handling and use of this smart device have been well thought about by the famous mobile, wireless, and home phone providers. The device is specially designed for easy and hassle-free use.

You just need to plug the box into a power outlet near a window of your house or office and you’re good to go!

How does it work?

The device works after being plugged into a wall and placed near a window. Once powered up, the Magic Box acts as a booster for cellular wireless signals. This is for the 4G LTE services provided by Sprint – a growing wireless, mobile and home phone provider.

There have been similar technologies available in the market in the past. But the Magic Box neither requires any payments to be made for a separate service, nor a broadband connection to boost the signals.

The Magic Box comes with a dedicated channel to the Sprint cell towers that are nearest to the device. This is why the device is to be deployed near a window, to get the best signals from the towers.

The device will be available for free to the ‘qualifying’ customers of the cheap phone service provider, as mentioned by Sprint. Though the factors qualifying the customers for the Magic Box are still not mentioned by the company. The product is available for a pre-order on the company’s website.

Final Thoughts

Sprint has been doing great in the industry. From a very bad reputation and poor signals to a growing demand for its services and a growing customer base, the carrier is moving towards more growth. With the Magic Box first made available to businesses, the wireless and cheap phone service provider will surely be able to gain the attention of it’s competitors.

Verizon Introduces the New $80 Unlimited Plan for Prepaid Customers

verizon prepaid

The war of unlimited plans among the wireless telecommunication giants isn’t really coming to a halt. Things are getting more competitive by the day. To take a leap ahead in the competition, Verizon announced yet another unlimited plan for its prepaid customers.

Recently, the prepaid home phone service provider Verizon faced a setback after losing a considerable number of its postpaid wireless customers. Thus, with this plan, the telecom behemoth is possibly trying to gain back the ground it lost.

The Unlimited Plan

The plan, announced on the 25th of April allows the prepaid customers of Verizon to get unlimited talk, data, and text services at the price of $80 for a month, across the United States.

The highlight that the cheap local phone service provider gave to this unlimited plan is that customers can get unlimited text messaging to over 200 countries. Also, the customers can have unlimited voice service to talk to their contacts in Canada and Mexico as well.

The unlimited plan, however, comes with a number of drawbacks. For instance – no high-quality video streaming (limited to 480p), and no mobile hotspot or tethering. Besides, the customers are given assurance of data prioritization over the other customers during times of data congestion.

The Idea behind It

Amidst the fierce competition being faced by Verizon with the prevailing unlimited plan wars, it is struggling hard to retain its wireless customers. For years, Verizon didn’t have much luck with its prepaid home phone service as it didn’t have many prepaid customers.

To come out strong in its prepaid game as well, Verizon introduced this plan, just 2 months after introducing its postpaid unlimited plan.

Within a few months, Verizon has actually transformed its mobile and prepaid home phone service with a no long-term contract and no credit check policy for its prepaid customer.

Tami Erwin, the executive vice president of Verizon operations said, “In just months, Verizon has transformed its prepaid offerings to make it easier and more affordable for customers to get access to the best network at a great value, no matter how much data they need,”

“This plan is all about giving our prepaid customers more choice. With data plans from as little as 2 GB to unlimited data, we’ve got a plan that fits your needs”, she added.

According to the huge cheap local phone service and mobile service provider, its customers deserved more choices. With this plan, Verizon’s prepaid customers can now choose among a number of choices of data plans.

The Bottom Line

There is cut-throat competition prevailing in the telecommunications world. With smaller services providers like Sprint and T-Mobile doing great in the market, the threat to bigger companies like Verizon and AT&T has increased significantly.

Just after the news that Verizon lost close to 307,000 customers broke in the market, the mobile and prepaid home phone service provider snapped into action with the said unlimited plan. Though the plan has its limitations, it can possibly be Verizon’s opportunity to win its customers back!

Verizon: Losing Wireless Subscribers for the Very First Time

Verizon Wireless

The telecommunication giant that was once the US’s number one mobile and cheap residential phone service provider, is facing trouble in its paradise. For the very first time, the top US wireless carrier has faced a terrible fall in its profits and has lost a significant amount of its wireless customers.

Let’s have a closer look at the matter.

Verizon Loses Wireless Customers in the First Quarter of 2017

The loss of the subscribers being faced by Verizon in the first quarter of 2017 has been posted by the wireless carrier, showing how its rivals have impacted its growth.

The mobile and wireless landline telephone service provider had been facing this swell of competition from the telecommunication rivals like T-Mobile and Sprint. And amidst the competition and price wars, Verizon reintroduced its Unlimited Data Plan in the month of February.

Previously, the unlimited data plan by Verizon was stopped in the 2011 but, seeing a rapid fall in their mobile and wireless subscribers, the company chose to bring it back.

Apparently, that wasn’t enough, leading Verizon to lose a total of around 307,000 postpaid subscribers for its retail wireless services. All of this, just in the first three months of the year.

The turn of events for the biggest mobile and cheap residential phone service provider is proving to be a setback. And the statement is backed by the fact that the Verizon stock was 1.5% lower on Thursday.

For Verizon, losing subscribers on a quarterly basis is not a new scenario as the telecom industry leader has always been known to report finacial growth, regardless of the loss of subscribers. But the number of lost wireless subscribers this time is quite big!

The Impact of Competitors

Such a huge loss of customers is being faced by the leading wireless landline telephone service provider because of the shift of its subscribers to its rivals.

As per the latest earnings report, the Verizon subscribers have been fleeing to its competing companies – T-Mobile and Sprint.

The demand for new wireless service is already quite low in the market as most people have mobile phones now. Thus, there is less opportunity for the cheap residential phone service providers to make profit on bringing new subscribers into the market.

Also, with the previously raging ‘Unlimited Data Plan’ war among the competing telecommunication companies, the service providers had to give unlimited wireless services, including data.

With the unlimited plans, the wireless landline telephone service providers cannot generate any fees for overages of data as was the case with the non-unlimited plans. Thus, there is less revenue generated through these plans.

To top it, the small competitors of the telecom behemoths like Verizon often offer cheaper plans to subscribers which usually lures them to switch.

All these events took a great toll on Verizon’s profits and subscribers.

Final Thoughts

Verizon, a leqading mobile and landline telephone service provider is going through a rough patch! But the company is surely not going to sit back and will come up with new plans, offers, and pricing to bring their subscribers back!

Stating to the matter, Matt Ellis, the Chief Financial Officer of Verizon said, “We’re confident in executing our strategy organically, but if there’s the right opportunity out there to accelerate the strategy inorganically in a way that adds shareholder value, we’re always looking at those opportunities”

So, let’s hope for the best from Verizon!