T-Mobile's aggressive 5G plan pricing may be all about the death of Sprint
According to industry analysts from LightShed and Recon, T-Mobile isn't really starting a 5G unlimited plan price war with its latest campaign that touts a $100 monthly plan for a family of four. There was no immediate reaction from Verizon or AT&T on the announcement, indicating that they don't really see the offer as a market share threat for now, too.
After all, the Un-carrier already offers a similar Essentials plan with the 3rd line free, say the analysts, which amounts to $120 for the same four lines of service. The limited time $100 family deal includes the same perks, or, rather, lack thereof, as the basic Essentials plan.
*All prices are after Auto Pay and w/ paperless billing, include unlimited talk&text in the US
*All prices are after Auto Pay and w/ paperless billing, include unlimited talk&text in the US
Thus, while T-Mobile may have the cheapest 5G unlimited data plan, as you can see in the comparison table below, its limited time discount makes it only slightly more attractive than the existing Essentials plan with the 3rd line free promo.
| AT&T Starter | Verizon Start | T-Mobile Essentials | |
|---|---|---|---|
| 1 line | $65 | $70 | $60 |
| 2 lines | $120 | $120 | $90 |
| 3 lines | $135 | $135 | $105 |
| 4 lines | $140 | $140 | $100 (limited time offer) |
| 5 lines | $150 | $150 | $120 (limited time offer) |
| 5G | No | No ($10/month add-on) | Yes |
| Throttling | Any time | Any time | Any time |
| Freebies | Basic spam protection | A year of Disney+ Apple Music (6 Months) Basic spam protection | T-Mobile Tuesdays Basic spam protection |
| Video streaming | SD (480p) | SD (480p) | SD (480p) |
| Hotspots | - | - | 3G speeds |
T-Mobile is going after Sprint subscribers with the cheapest 5G plan
What T-Mobile may be gunning at with this "taking the gloves off" promo, are actually Sprint's customers, according to the same analysts. T-Mobile is completely folding the Sprint brand as soon as this Sunday, starting to remove signage and branding in the process, so Sprint customers might start getting ideas.
Sprint has absolutely the same 5G unlimited family plan for $25 a line before, so T-Mobile may be trying to entice Sprint subs to convince them that nothing's changes and they have the same great offers to chose from in terms of pricing. The fact that the Un-carrier advertises the $100 monthly deal as a limited time offer, also points us in that direction.
The real advantage of the "gloves off" promo, however, is in the free 5G phone that can go with it, should you wish to get handsets together with that sweet 5G coverage. After all, for just $5 a month per line more, T-Mobile will tack on the excellent Galaxy A71 5G now, which we reviewed and loved not long ago.
Still, there is a true price advantage for T-Mobile's, and, by extension, Sprint's customers, both with the timed promo and basic 5G plan, as well as the middle-of-the-road plans that are a good tradeoff between affordability and perks.
As you can see in the Verizon vs AT&T vs T-Mobile 5G plan price comparison below, those can reach up to $40 when comparing the same family plan at Verizon, with T-Mobile's Magenta and leading the pack when it comes to perks and 5G coverage, and only giving way in the hotspot category.
| AT&T Extra | Verizon Play/Do More | T-Mobile Magenta | |
|---|---|---|---|
| 1 line | $75 | $80 | $70 |
| 2 lines | $130 | $140 | $120 |
| 3 lines | $150 | $165 | $120 (3rd line free) |
| 4 lines | $160 | $180 | $140 |
| 5 lines | $175 | $200 | $160 |
| 5G | Yes | Yes | Yes |
| Throttling | >50GB | > 25GB/50GB | >50 GB |
| Freebies | - | A year of Disney+ Apple Music/Trial (6 months) -/500GB Verizon cloud storage | Netflix (basic, 1 SD screen) T-Mobile Tuesdays |
| Video streaming | SD (480p) | HD (720p)/SD (480p) | SD (480p) video streaming |
| Hotspots | 15GB per line | 15GB | 3GB |
All in all, with the Sprint brand done, it's now time for T-Mobile to fulfill its regulatory promises for an affordable 5G connectivity, and the "gloves off" $100 family plan deal, it might have just the recipe to both cover federal scrutiny, and expand its market share. After all, according to Roger Entner, a founder at Recon Analytics:
It’s an aggressive offer, usually you don’t get that aggressive unless you want to accelerate thing. [Carriers] don’t do these things out of the goodness of their heart.
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