T-Mobile to Offer New Prepaid Plans

Fri, 21/05/2010 - 4:13pm — CellAdmin

T-Mobile said it will start offering two unlimited prepaid plans on Wednesday, as the struggling carrier targets the fast-growing segment of cost-conscious consumers that don't want to sign long-term contracts.

The Bellevue, Wash.-based company said one plan, for a mere $15 a month, comes with unlimited text, picture and video messaging with nationwide calls for 10 cents a minute. Another option, for $50 a month, removes the per-minute fees for unlimited calling.

Prepaid service, once a niche segment, targeted customers who didn't have enough credit to qualify for contracts. But with the recession hurting consumers' pocketbooks, the draw of cheaper payments, no contracts and no termination fees has gained a wider appeal.

Wireless operators took notice and cut prices, as Sprint ignited the battle last year by offering a prepaid plan with unlimited minutes for $50 a month under its Boost Mobile brand.

Meanwhile, T-Mobile, the fourth-largest U.S. carrier, has struggled to keep pace with rivals AT&T, Verizon and Sprint.

After reporting declining sales and a mass exodus of subscribers, the beleaguered company is looking for new ways to boost revenue, including a network upgrade and a potential deal to roll out fourth-generation, or 4G, service.

Sprint revamped its Virgin Mobile brand last week, dropping prices on prepaid service, and introducing a new service, dubbed Common Cents Mobile, with discount retailer Wal-Mart.

Source: (www.mobiledia.com)