T-Mobile Pressuring Rivals In Q4: Analyst

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T-Mobile will maintain its “Uncarrier momentum” and gain market share in the fourth quarter, thanks to a series of initiatives that include its Binge On service, Strategy Analytics said.

“Through its Uncarrier initiative, including services like Music Freedom and now Binge On, T-Mobile is challenging its competitors by positioning itself as the most customer-friendly wireless operator in the U.S. market,” the research and consulting company said.

The strategies are “strengthening T-Mobile’s value proposition while challenging AT&T and Verizon Wireless to follow suit,” the company added.

Earlier this month, T-Mobile launched Uncarrier 10 initiatives, including an opt-in Binge On service that lets subscribers of many data plans stream DVDquality video from 24 online streaming services without using up the data in their LTE data buckets. The roster of included services will be expanded. Resolution is lower than what the carrier normally offers, and the service uses proprietary technology that makes video streaming more bandwidth-efficient.

For streaming-video services not among the 24, subscribers will be able to fill their LTE data buckets with three times more video than before.

In other Uncarrier initiatives, the carrier also doubled the amount of LTE data that subscribers can get from any existing plan at no extra charge. And for three months starting Dec. 1, the carrier is giving unlimited high-speed data to all postpaid Simple Choice customers.

T-Mobile’s Music Freedom service, launched in June 2014, lets consumers stream unlimited amounts of music from select music services over the company’s LTE network. The program, available at no extra cost for Simple Choice plan subscribers, has expanded to include more than 30 services,

The Binge On service, however, is a more significant undertaking. “Video is one of the fastest growing mobile data consumption types,” said Strategy Analytics director Nitesh Patel. “With Binge On and its offer to double the LTE data allowance for Simple Choice customers, T-Mobile is removing consumers’ concern about blowing their data allowance or incurring competitors’ huge overage fees.”

T-Mobile’s network enhancements are a factor enabling the carrier to promote services such as Binge On, Strategy Analytics said. “Binge On is adding value for customers and creating the buzz to showcase the ‘data-strong’ network to retain T-Mobile’s current subscribers and attract new customers in the Q4 holiday shopping season,” said Susan Welsh de Grimaldo, Strategy Analytics director of wireless operator strategies.

“With Uncarrier, T-Mobile has consistently outperformed on phone net adds and has reduced its churn rate,” she added. “Uncarrier 10 is a bold step to expand the value proposition.”

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