T-Mobile Offering $10 Data Plan Credit for One Year
These kinds of business tactics
are what puts a company under. T-Mobile has to generate a certain level of revenue in order to continue operating profitably, and offering rate plans - especially data plans - for dirt cheap is not the way to do it. I understand that T-Mobile's business plan has long been to offer good service at below-market prices, but I think it's very clear now that doing so spells death to a wireless company. Especially having to cater to consumers' insatiable demand for all things data, these credits are stupid. I'd like to see an accurate ARPU figure for T-Mobile, and then compare that to the $120/year they'll be losing. My bet is it has a significant impact upon the gross margin; so much so that they may only break even after all operational costs.
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I think they just don't care really at this point.
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I agree but T Mobile tried a risky strategy....they needed to increase revenue to have the money to improve their network, raising their rates isn't feasible because it would increase churn and ruin their reputation as the budget friendly carrier...
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Look to Metro PCS that offers unlimited 4G data profitably for $60 per month. Once the subscriber is earned, the cost to maintain them is minimal. In fact per T-Mobile's own Q1 profit statement the cash cost per user is $25 per month. Anything abov...
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