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T-Mobile Slow Speeds for “Unlimited” Customers Will Cost $48M to the Carrier

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The FCC has made it clear that T-Mobile slow speeds for “unlimited” customers lacked transparency and will cost the carrier around $48 million or more.

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“The nation’s third-largest mobile network operator will pay a fine and provide benefits to consumers totaling $48 million as a part of a settlement regarding its policies that slowed data speeds for both T-Mobile and MetroPCS customers who exceeded their monthly data allotments” sources confirmed.

“The FCC’s investigation found that the company policy allows it to slow down data speeds when T-Mobile or MetroPCS customers on so-called ‘unlimited’ plans exceed a monthly data threshold,” the Commission said in a press release. “Company advertisements and other disclosures may have led unlimited data plan customers to expect that they were buying better and faster service than what they received.”

The FCC has confirmed it received complaints from the carrier’s customers regarding its unlimited data plan which gave false information to the users. The data plans that had been marketed as unlimited included “de-prioritized” speeds once monthly data allotments were reached. The commission further added “T-Mobile slows data speeds for its heaviest users who’ve consumed their monthly data quotas when network traffic is particularly heavy.

“According to consumers, this policy rendered data services ‘unusable’ for many hours each day and substantially limited their access to data,” the FCC said. “The bureau believes that the company failed to adequately inform its ‘unlimited’ data plan customers that their data would be slowed at times if they used more than 17 GB in a given month.”

The deal requires T-Mobile to pay a $7.5 million fine to the U.S. Treasury as well as funding “a $35.5 million consumer benefit program” for customers affected by its “unlimited” policies.

The carrier also agreed to spend at least $5 million to provide free devices to students in low-income school districts and free mobile broadband services to those devices at a reduced cost to the schools. The program will be launched in October 2017 and enroll 5,000 students per quarter over four years.

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T-Mobile Reveals Its Plan to Continue Getting the Market Share

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T-Mobile Plans

 

T-Mobile, one of the largest wireless carriers in the entire United States, has been reported at a 15-year record low. The company had been adding over one million postpaid customers to its ever increasing subscriber base for the last seven quarters. Contrary to this, the company has hardly managed to add around 890,000 postpaid customers during the last three months.

Out of all these newly added customers, 646,000 customers already having phone connections reflect T-Mobile’s poor showing in the recent past. Much of the credit goes to some of the top ranked fierce industrial competitors mentioned below:

  • Verizon Communications
  • AT&T
  • Sprint

This is way more than the number of customers Verizon Communications, AT&T and Sprint managed to add in their consumer base collectively. Verizon Communication managed to get only 615,000 new consumers for postpaid connections and 86,000 phone customers. Coming to At&T, the company struggled to add 72,000 postpaid customers. AT&T lost more than 180,000 phone customers whereas another industrial competitor gave tough competition to T-Mobile in the market by increasing more than 180,000 postpaid customers and 173,000 phone connections.

If the market report of the Financial Times is to be believed, T-Mobile is seeing a 15-year record low of subscriber switching. This decrease noticed in switching trends is surely going to make T-Mobile’s journey tough.

The inside sources of the company are busy assuring the investors that the management has a certain plan to continue grabbing the lion’ share of the market.

Some of the T-Mobile insiders have confirmed some essential components of its plan. All of these components are mentioned below:

  • Make the best use of network expansion
  • Focus on family plans
  • Possibility of Stir by iPhone 7

Let’s see how this plan and all of components blow the wind in favor of T-Mobile.

  1. Make the best use of network expansion:

Taking the company’s current position in the marketplace, T-Mobile has recently shifted its focus towards LTE (Long Term Evolution) Network expansion. This move has been taken by the company as an integral part of its business development strategy for including more than 311 million customers in its coverage network. T-Mobile already has the network exceeding 200 million people within the 700 MHz low spectrum band. The company is planning to add an extra 70 million people in it. This is hurting T-Mobile one way or another as the company has struggled to reach and serve customers in these areas. However, this is also a kind of a huge opportunity for T-Mobile to consolidate its reputation for new customers and growth in such areas.

  1. Focus on family plans:

The T-Mobile think tank is considering shifting focus to family plans to consolidate its market reputation. T-Mobile’s family plans are very much affordable as compared to rest of the rivals like AT&T, Verizon Communications and Sprint. The company invests heavily on promoting its four-line family plan with 6 GB data at the cost of $120. As a comparison, the price of AT&T and Verizon’s four line plans are concerned, users are charged $235 and $170 respectively. The company strongly believes that there is a good possibility of doing much better with family plans on the business front.

  1. Possibility of Stir by iPhone 7:

The T-Mobile think tank is also keeping eye on the release date of iPhone 7 by Apple INC. Its release is going to be a huge opportunity for the company to stand tall in the category of companies like Verizon Communications, Sprint and AT&T. Many consumers will look forward to switching their carriers for the opportunity of upgrading their devices to the new version of the iPhone.

T-Mobile has proven its history of doing better specifically when a large amount of users switch carriers. With the release of Apple’s iPhone 7, many customers will switch carriers. Now it will be very interesting to see if the plan comes to fruition.