Binge On to drive subs to T-Mobile US
November 20, 2015
With Un-carrier X offering double the LTE data plus its new zero-rated video streaming service Binge On for no extra fees, T-Mobile US is set to maintain its Un-carrier momentum and gain market share in Q4 as it puts pressure on the pricing approaches of its rivals, according to Strategy Analytics.
Through its Un-carrier initiative, including services like Music Freedom and now Binge On, T-Mobile is challenging its competitors by positioning itself as the most customer-friendly wireless operator in the US market. Un-carrier momentum continues with the addition of the Binge On mobile video streaming service supported by zero-rated data over LTE and video optimization technology, strengthening T-Mobile’s value proposition while challenging AT&T and Verizon Wireless to follow suit.
Nitesh Patel, Director, Wireless Media Strategies at Strategy Analytics commented: “Video is one of the fastest growing mobile data consumption types. With Binge On and its offer to double the LTE data allowance for Simple Choice customers, T-Mobile is removing consumers’ concern about blowing their data allowance or incurring competitors’ huge overage fees. Despite 24 video content services included today, the current absence of a few popular services from Binge On, especially YouTube—which according to Strategy Analytics’ consumer telemetry is generating the largest amount of data traffic among all mobile applications used—could be a disappointment, in particular for millennials who typically go on YouTube and social networks to catch the latest videos.”
Susan Welsh de Grimaldo, Director, Wireless Operator Strategies at Strategy Analytics, adds“T-Mobile needs to get the word out that its LTE network is getting much closer to par with AT&T and Verizon Wireless with the vast improvements made over the past year, especially the large-scale buildout of LTE on its 700 MHz, Band 12 spectrum that increases indoor and suburban/rural coverage. The Un-carrier also needs to keep the pressure on Sprint as the latter promotes its ‘LTE Plus’ network improvements with its latest cut your rate in half promotion. Binge On is adding value for customers and creating the buzz to showcase the “data strong” network to retain T-Mobile’s current subscribers and attract new customers in the Q4 holiday shopping season.”
“A crucial element to Binge On is video optimisation, which can actually enhance the viewing experience while helping T-Mobile get in front of the huge anticipated growth in video traffic.With Un-carrier, T-Mobile has consistently outperformed on phone net adds and has reduced its churn rate. Un-carrier X is a bold step to expand the value proposition,” she concludes.