T-Mobile is doing what no other carrier has done before, a move that could either break the company or set it up to be more competitive with the likes of AT&T and Verizon. The carrier has announced plans to make data and text unlimited for subscribers who travel often to other countries.
This new plan by T-Mobile totally eliminates the roaming problem customers have when they take a trip to another country. If one is not careful, roaming fees could reach into the thousands, which is why this strategy should be seen as a game changer. The carrier says its new plan will go into effect on October 31 with support for 100 countries on day one. It will also make simpler the calling rates, charging a fixed rate of 20 cents per minute.
Existing and new T-Mobile customers are all eligible for the new International plan. Furthermore, the carrier also announced a $10 Stateside International Talk and Text plan for U.S. subscribers making calls to other countries. The plan includes call charge at 20 cents or fewer, which depends on which country the user is calling. Additionally, subscribers also get free unlimited landline calls to 70 countries.
"The cost of staying connected across borders is completely crazy," said, John Legere, president and CEO of T-Mobile US, Inc. "Today's phones are designed to work around the world, but we're forced to pay insanely inflated international connectivity fees to actually use them. You can't leave the country without coming home to bill shock. So we're making the world your network - at no extra cost."
The international plan is likely to attract regular travelers and big businesses that have employees who make frequent travels overseas. The amount of money frequent travelers and businesses will save by switching to T-Mobile could rake up in the thousands.
Make no mistake, if T-Mobile is able to pull this off, expect competitors to follow soon after. We could also see other network carriers from other countries attempting to do something similar, a move that could change the way we use our mobile phones abroad.
T-Mobile CEO, John Legere, seems to be on the right track for now. However, we will have to see if he is capable of staying one-step ahead of the competition to help his company regain lost market share.
