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T-Mobile is "choking" its customers unlimited data connections, ditching unlimited allowances for a new pricing scheme. Its prices beat AT&T, but come up short versus Sprint, who will soon be the only carrier with unlimited data.  (Source: FHM)
T-Mobile family plan is $30/month more than Sprint, single line is $20/month more, and lacks unlimited data

With an acquisition by AT&T, Inc (Tseemingly impending, many customers of Deutsche Telekom AG's (DTE) T-Mobile USA phone carrier are already jumping ship.  T-Mobile USA yesterday announced new pricing that may give some a bit of extra incentive to stay, while giving others all the more reason to jump ship.

I. The Cap

The bad news is that T-Mobile has officially killed its "unlimited" data plan.  In that regard T-Mobile is following in the footsteps of AT&T, who ditched unlimited data plans last June.  

Verizon Communications, Inc.'s (VZ), the nation's largest carrier (before the T-Mobile merger closes, at least) with 104+ million subscribers will also phase out its unlimited data plan this summer, and has already started capping data usage on its 4G LTE network.  Like T-Mobile, Verizon will pad this blow with new family options.

T-Mobile's new tiered data plan offers 200 MB for $15 USD/month or 2 GB for $20 USD/month.  T-Mobile's tier extends higher, though with a 5 GB per month allowance for $30 USD/month, or a 10 GB allowance for $60 USD/month.

Rather than imposing overage charges, T-Mobile is merely bumping the offender's connection down to 2G and letting them languish at slow data speeds until the billing quarter is over or they pay to upgrade their data plan.

To be fair, T-Mobile's "unlimited" data might not have been so unlimited after all.  The carrier was caught last August throttling its unlimited plan connections and sued in California court.  After the news broke, T-Mobile confessed that it indeed intended to throttle "unlimited" connections if they were used past 5 GB.

II. Family Plans

To soften the blow of killing unlimited data; T-Mobile is unveiling some pretty competitive family deals.  

Individual plans currently have tiered pricing for voice allowances of 500, 1,000, or unlimited minutes.  The new family plans will have voice allowances of 1,000, 2,000, or unlimited minutes.

Similarly, the individual plan offers unlimited texts for $10 USD/month; the family plan will offer unlimited texting for $20 USD/month.  Similarly, the data plans cost twice as much when shared on a family plan.

A family plan starts with 2 lines, but costs $10 USD/month to add more lines.  Up to 5 lines can be on a single family plan.

The results are a fairly competitive pricing scheme that narrowly beats AT&T in pricing (for example, family plan texting costs $30 USD/month on AT&T).  It still remains to be seen how the plan stacks up against Verizon's updated rates, which it plans to unveil this summer.

III. 4G Where Art Thou?

We've said it before and we'll say it again, no matter how much T-Mobile wishes it, its "4G" isn't true 4G.  Rather its a 3.5G tech (HSPA+) rebranded by clever marketers.

T-Mobile's HSPA+ network fails to deliver the full speeds promised by the HSPA+ specification, much as current true 4G wireless networks from Verizon and Sprint Nextel Corp. (S) do.  But as the base HSPA+ spec is significantly lower than the 4G spec, real world imperfect HSPA+ generally is slower than real world imperfect 4G (LTE, WiMAX).

T-Mobile's pricing certainly makes it more attractive than AT&T, who is also putting off the upgrade to true 4G, opting to rebrand its own HSPA+ as 4G as well.  But the plan may seem less attractive when Verizon unveils its own pricing on true 4G data.

IV. Sprint -- The Last Hope

All the market movement leaves Sprint as the last hope for unlimited smartphone data.  

Sprint is arguably the best deal on the market, offering unlimited talk, text, and data (+4G) for $99.99 USD/month.  

In many regions you'll pay at least $35 USD in local taxes and fees, so your real world phone bill with Sprint will end up at around $135 USD/month for a connection with 4G.  By contrast a non-4G, 10 GB capped connection, with fees will be around $155 USD/month on T-Mobile ($120 USD/month pre-fees).

T-Mobile's family plans also look even more miserable in the face of Sprint's.  At 2-line unlimited talk, text, and 10 GB data family plan without 4G will cost you $220 USD/month pre-fees on T-Mobile.  That same plan will cost you $190 USD/month, pre-fees on Sprint.

So Sprint’s plans give you unlimited data, true 4G access in some reasons, and cost $20 USD less for individual plans and $30 USD less for family plans.

But if you needed any more incentive to ditch T-Mobile, Sprint is offering $125 USD to customers who switch from a rival carrier.

All of this sounds somewhat like an ad or promotion, but it's just the plan facts -- Sprint is far and away the most affordable carrier and the only carrier to still be fighting the good fight with unlimited data.

Now there are a couple caveats -- in some regions Sprint's network isn't quite as strong as Verizon and AT&T (the same could be said of T-Mobile).  Note that in some areas the reverse is true, but nationwide AT&T and Verizon tend to be strongest in coverage.  Also Sprint's executive leadership has suggested that they may impose data caps at some point, though for now they're content to leave their connection uncapped.

Sprint current has only 51 million customers, far less than the 129.8 million that T-Mobile + AT&T have and 104 million on Verizon.  But it would seem likely that some customers at least who had stuck with T-Mobile for the free data may jump ship to Sprint.

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RE: Unlimited Data
By JasonMick on 5/24/2011 10:15:40 AM , Rating: 3
1) Perhaps buying the software outright would have been cheaper?

Actually not. The package I was using licensing would have been more -- more than my eventual settlement at least. My use was somewhat of in a legal gray area, as the school offered licenses, but you could only use them in a select lab at limited hours so it was a really dumb situation.

The package I downloaded was a pretty outdated version of the software, but I could use it 24-7, which did the trick.

If I had the time I could have bought it on eBay perhaps (a used version), but the prof didn't give us our project till the last minute and had ridiculous expectations. Pretty much everyone in the class was forced to follow a similar route, given the time requirements and lack of software availability.

A couple had the good fortune of working in a lab with 24-hour access to the software, but I was not as fortunate at the time.

Most expensive 'A' I ever got...

Again, my net message is not that I made a good decision. It's that Verizon exploited the overage by charging me >40x the going data rate.

Over a typiical school Wifi, a 1.5GB file should have taken about 15 minutes or so to download. So what is more efficent, camping out at school for an extra 10 minutes or waiting over-night for a slow 3G download? You couldn't even use the software till it was done downloading.

My school at the time blocked bittorrent traffic and some proxies. I could perhaps have gotten around it, but again I don't use bittorrent almost ever so didn't really have much practitioner experience in such things. Honestly I didn't realize how high the upload to d/l ratio would creep so fast...

Again, though, my original point was not on the intracies of filesharing or grad school nonsense, which were obviously involved, but rather on the fact that Verizon was willing to charge a customer > 40x their standard rate for data overage.

In my opinion that is absolutely abusive.

But it's a free market. You can take your business elsewhere. And I did.

RE: Unlimited Data
By Belard on 5/25/2011 10:46:43 AM , Rating: 2
If I had the time I could have bought it on eBay perhaps (a used version), but the prof didn't give us our project till the last minute and had ridiculous expectations.

Then the students need to group together, and file a complaint about a software requirement with unrealistic expectations. If the ability for most students to get the school work done was to obtain illegally licensed software, then there is a SEVERE problem on the school's end.

Thats why they have student discounts, where you can buy a full version of MS-Office Pro for $50 (off the top of my head). When you sign up for a course, the listed required books / software is supposed to be available up front. No instructor has any business pulling such crap on students. Not talking about the "surprise - you got 2 days to do this" - but the fact that purchasing of expensive software is thrown in.

I use as much free software or even old software (as long as it works) to save money. I used office 2000 until recently, when clients upgraded to office 2010, they had no use for their Office2003 retails. :)

Office2003 hasn't really added anything other than slightly newer looking. I can't quite see the value of my needs to spend $115 for Office2010, even tho its a good product. I still use Photoshop 7 because it does everything I need. I played with CS5, very nice... and But I'll keep the $1500. :)

Most expensive "A" I heard of - some rich kids didn't want to spend time working on a video production (which is the course) so they spent $17,000 to pay a "PRO" to do it for them. I'd never hire them, they didn't learn anything.

"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il

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