T-Mobile Unveils $100 Phone Plan
Yesterday, T-Mobile said they have a new phone plan called "Go5G Next." It costs $100 each month for one person to use. This is more expensive than the best plans from AT&T and Verizon.
T-Mobile, a company that used to criticize other companies for their high prices, recently announced that its new plan is actually more expensive than the best plans offered by AT&T and Verizon. AT&T's best plan costs $85 for one person, and Verizon's best plan costs $80 unless you want to add extra things like the Disney Bundle.
T-Mobile's Go5G Next is a special plan for phones that will start on August 24. With this plan, you can use your phone and internet as much as you want without limits. You can also connect other devices to your phone and use the internet on them, like a tablet or computer, up to 50GB. Every year, you can get a new phone if you want to. Plus, you get to watch shows and movies on Apple TV+ and Netflix. Other phone plans from AT&T and Verizon don't give you these streaming services.
However, T-Mobile claims that their price for three lines is the same as Verizon's, and it is $15 cheaper than AT&T's. This price includes the taxes and fees too. People who are worried about the merger think that it could make things more expensive.
Some people were worried that when T-Mobile and Sprint joined together, it would make prices go up, which would not be good for other companies and people who use their services. T-Mobile said they wouldn't raise prices for a while, but now that time is up, they might start offering new plans that cost more.
There are three big companies in the US that provide phone service without needing to connect to wires. Because there aren't many other options, T-Mobile doesn't have to make their prices lower. People who study these things think it's good that T-Mobile is making their prices higher because it means they will make more money.
The analyst thinks that AT&T and Verizon may not offer as many special deals for their current customers to upgrade their phones. This could be good for T-Mobile because it means more people might choose to switch to T-Mobile instead.
In the second quarter, the wireless industry added 2.05 million new phone lines for people who pay their bills after using the service. In the past year, they have added a total of 8.93 million new customers. This is slower growth compared to the previous year, but still more than what is usually expected.
Cable companies that sell wireless services in the areas where they provide home internet have gained a lot of new customers for their phone plans. They now have a small but growing share of the market for these phone plans.