T-Mobile US Inc (NASDAQ:TMUS) has announced that Verizon and AT&T decisions to expand their unlimited data offerings may suppress their network speeds. During the recent Investor Conference, the company’s executive said the move is killing their data plans for its existing and potential customers.
This year, T-Mobile’s attained an average network speed of 27 Mbps securing the first place in both downloading and LTE availability across the US. The achievement of the company indicates how small companies can suddenly fly past its large competitors and speedily interrupts the markets. The recent ranking shows that Verizon dropped to the third position after AT&T on the network speeds.
As the market for Smartphone and tablet enters saturation stage in US, the network carriers have started fighting for the same customer base. The T-Mobile’s unruly yet attractive unlimited data provisions have continually eaten deeper into the subscriber base of its competitor carriers, Verizon and AT&T.
In the first quarter of the year, T-Mobile gained over 1.1 million customers while Verizon experienced a net decline of about 307,000 of its wireless postpaid connections. The severe performance of the two carriers has influenced their latest reaction by launching the new unlimited offerings as a way of fighting for their market positions. AT&T announced on July 20 that it plans to increase access to unlimited data plans to its wireless postpaid subscribers.
The updated AT&T unlimited data plan will commence at $100 per month for a single line, with an additional line at an extra $40 per month. Data plans with four lines would acquire $180 a month at no extra charge. Furthermore, the company will also slow down the speeds during the time of network congestion once the 22 GB data is consumed per line.
Meanwhile, Verizon Wireless customers who are currently using a $30/month unlimited data plans will be forced to switch to the latest tiered provision that the company is planning to launch soon. The company stated that they are transferring their current and potential 4G LTE users to an updated data share plan, which T-Mobile believes is the move to stagger their network speeds.