New Switcharoo from T-Mobile

by Colin Berkshire

T-Mobile is rolling out new pricing and new plans. As is to be expected, it is brilliant and once again it is very consumer-friendly.

I see the key highlights this way:T-Mobile Logo

  • Taxes are included. A $70 plan will cost you $70. Consumers hate those taxes. And, consumers cannot price products because of the taxes. To be honest, most consumers think that the taxes are higher than they really are. So by including them, consumers feel they are getting a better deal. This will hurt Verizon as people comparison shop.
  • Unlimited high speed data is the norm. Gone are plans where you pick between 2GB and 6GB. (If you use under 2GB they rebate back $10.)
  • Service on affiliate networks is now included. Previously you got a funny and unreasonable 50 MB of data on networks in places like Montana and Idaho. Now, you can just use their networks.
  • Canada and Mexico are included. Always.
  • Global roaming at 128 kilobits iOS included (as before.)

Then, they add a simple $15 add-on which includes long distance to many countries. Or, as an alternative, for $25 your get calling to those countries PLUS your international free roaming speed is increased to 256 kilobits per second.

All of this is simply T-Mobile giving customers what they want.

It’s quite interesting to watch T-Mobile gore their competitors by giving people what they really want. Verizon and AT&T don’t really know what to make of this…the idea of treating customers nicely is just beyond their corporate comprehension.

I think there is a major B-School lesson here: You can build a great company by giving customers what they want. And, you CAN raise prices. Just look at how T-mobile is quietly bumping up their prices by eliminating 2GB and =6GB packages and by raising the price of adding an iPad from $10 to $20 a month.

Go T-Mobile!