Will T-Mobile’s New Plan Be Accretive To Its ARPU?
T-Mobile U.S. (NASDAQ:TMUS), the third largest U.S. wireless carrier, announced that it intends to eventually phase out its tiered data plans altogether, while promoting a new unlimited high-speed data plan dubbed T-Mobile One that launches next month (related: How The One Plan Impacts T-Mobile). While the plans could be a mixed bag for many subscribers, they should prove to be accretive to T-Mobile’s ARPU, which is among the lowest in the industry. Moreover, the risk of high-end customers on plans such as the $95 Amped unlimited plan downgrading to One appears to be low, given the superior features on existing plans such as high-speed tethering and unlimited HD-video streaming.
We have a $49 price estimate for T-Mobile, which is roughly in line with the current market price.
See our complete analysis for T-Mobile U.S.
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