(Reuters) -T-Mobile’s prepaid unit unveiled four new plans on Tuesday that provide a five-year price guarantee and monthly charges as low as $25 per line, as the company seeks to shield its market share from competition amid economic uncertainty.
WHY IT’S IMPORTANTThe launch by T-Mobile’s unit, Metro, comes at a time when consumers are becoming budget-conscious after around two years of persistent inflation and amid widespread concern that U.S. President Donald Trump’s trade war could trigger a recession.
The strategy could also shield its market share from other providers that are increasing promotions and bundling wireless with broadband plans to attract customers.
KEY QUOTES
"We get it. Budgets are really tight right now. That’s why we’re giving customers next-level connectivity and brag-worthy benefits that real people love, at prices real people can afford," said Jon Freier, President, T-Mobile Consumer Group.
BY THE NUMBERS
Metro’s four prepaid plans will be available from Thursday.
The cheapest, called Metro Starter, offers basic service at a monthly charge of $25 per line for a family of four and comes with 5G phones.
Another plan, Metro Starter Plus, provides a $40 flat rate, with special two-line offers available.
The other two prepaid plans were Metro Flex (NASDAQ:FLEX) Unlimited and Metro Flex Unlimited Plus, priced at $30 and $35 monthly per line for four lines, respectively.
T-Mobile also launched two postpaid wireless plans- Experience More and Experience Beyond - that include benefits of its Go5G Plus service, more hotspot data and satellite-based services through Starlink till the end of the year.
CONTEXT
Last week, Comcast (NASDAQ:CMCSA) launched a new five-year price lock for its Xfinity Internet service with plans starting at $55 per month.
Verizon (NYSE:VZ) also announced a three-year price lock for new and existing customers on its myPlan and myHome network offerings earlier this month.