AT&T Cuts Price of 2GB Shared Data Plan, T-Mobile Ups Cost of Unlimited Option
March 10, 2014 2:51 PM
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AT&T's plan is getting a $15 price cut
The rivalry continues between AT&T and T-Mobile as the two carriers adjust prices once again, but you may be surprised at who is raising prices and who is cutting them.
, it is cutting the price of its 2GB shared data plan by $15 per month. That means that users will pay $80 per month for one line with a two-year contract, and only $40 per month for each additional smartphone instead of $55.
Customers who bring their own phones or purchase them through AT&T will pay $65 a month for one line, which is a cut from $80 per month. Those with two lines will pay $90 per month, down from the previous $105 per month.
AT&T is likely looking to lure customers from their older plans to the newer shared data plans, which include unlimited talk and text with mobile hotspot use at no extra charge.
, on the other hand, is replacing an unlimited plan and raising prices at the end of March by $10. More specifically, the $70 per month unlimited data plan is being booted for a 5GB offering instead, which is still set at $70.
For unlimited, customers will have to pay $80 per month.
But on the brightside, T-Mobile is bumping up its $50 per month plan from 500MB to 1GB, and the $60 per month plan from 2.5GB to 3GB. Customers can also look forward to unlimited texting from the U.S. to over 120 countries.
It's suprising that T-Mobile is raising its unlimited plan price, since cheap unlimited plans are a key differentiator in a market where the top guys (Verizon and AT&T) have done away with such plans for tiered options. But at the same time, T-Mobile said that these plans are getting expensive, and it needs to be able to afford to build its network.
T-Mobile added that data demand has been rising under its existing plans, and that subscribers use nearly 50 percent more data now than they did a year ago.
In fact, monthly usage on unlimited plans has nearly doubled and tops the 5GB mark.
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This article is confusing but I still switched
3/10/2014 10:15:44 PM
Something not specifically mentioned in the article is T-mobile is doubling the tethering limit on the soon-to-be $80 unlimited plan from 2.5GB to 5GB/month. It's not just a bend-over-and-take-it price hike as the article implies. A better way to put it is "T-mobile has created new $70 and $80 pricing tiers and bumped up data and tethering usage across the board".
I wonder how many customers Verizon is bleeding right now. I've been on the fence about switching over to T-Mobile for about 6 months. I'm finally ditching my $100/month unlimited data plan for T-Mobile's $60/3GB plan. The fact that they will let me tether with that 3GB really is the cherry on top.
RE: This article is confusing but I still switched
3/11/2014 7:09:20 AM
People grossly underestimate the cost of monthly payments.
Your example of $40/mo savings is almost a cool grand over a two year contract! Yet we have smartphone makers cutting corners to save a few dollars here and there, because consumers put such as much weight on the upfront cost as they do for things they buy in general.
I've never understood the apathy to monthly costs. I know a retired guy living off SS and a reverse mortgage, and he's paying for his unemployed son's $120/mo Verizon bill.
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