T-Mobile US Inc. (NASDAQ:TMUS) has announced an additional feature on its new unlimited data plans. Although the "uncarrier" labels the new changes as 'listening to its customers,' the changes have further added to the confusion. Following the announcement, shares of the telecom giant are trading at 1.94% at $46.85 as of 1:52 PM EDT.
The self-proclaimed uncarrier has added another option for customers to stream videos in HD-quality with its new T-Mobile “HD day passes” for 24 hours for an additional $3 per day. The telecom company has also added a premium service, T-Mobile ONE Plus, that comes with unlimited high-speed 4G LTE mobile hotspot data, unlimited HD day passes and its new “Simple Global” feature – which includes free data roaming in more than 140 countries for an additional $25 per line, per month.
Can’t decide whether T-Mobile ONE or ONE Plus is right for you? We’ll make it easy.https://t.co/EEdVsz5KHd— T-Mobile (@TMobile) August 29, 2016
The new plans cater to customers that are heavy users of data both in terms of quantity being used and quality (streaming quality). Although the company had previously announced the option of having HD-Quality streaming for an additional $25, the new plan replaces that offer as well.
The telecom giant will now launch its unlimited data plans for its customers on September 1 this year, five days earlier than the previously announced date. The company also mentioned that it would keep its word with existing customers and allow them to keep their current plans as long as they wanted without any price hike. Commenting on the changes, President and CEO of T-Mobile, John Legere, said: “We’ve ended data buckets, gone unlimited and now we’re amping up T-Mobile ONE to make it even better.”
Interestingly, T-Mobile included the HD streaming feature just days after Sprint launched its high-end unlimited data plan – the Unlimited Freedom Premium. Sprint’s higher-end data bundle offers unlimited HD (up to 1080p+) streaming videos, gaming streaming at up to 8 Mbps and HD music streaming at up to 1.5 Mbps for $80 per month for one line, and $140 per month for two.
Jefferies’ Stance On T-Mobile’s Unlimited Data
According to a recent report from Jefferies, T-Mobile’s BingOn will be the key driver for its unlimited data plans with its low-quality video, but will provide phenomenal load benefits. According to the research firm, almost 90% of T-Mobile’s customers do not utilize their total data allotments.
Year-to-date shares of the telecom carrier have gained 17.87% in value, outperforming the Dow Jones US Telecommunications Index, which grew 14.25% during the same period. Additionally, according to a recent poll compiled by Bloomberg, of the 29 analysts that cover the company, 21 advocate a Buy rating, 7 recommend a Hold, while the rest suggest a Sell rating on the telecom giant.
We advise investors to keep a close eye on the industry as AT&T may also announce a similar unlimited HD-supported plan and Verizon might want to hop on the unlimited bandwagon too.