How Government Cell Phone Service Provider Verizon’s Unlimited Plan Affects T-Mobile

T-Mobile is a well-known Government cell phone service provider that has introduced several exceptional mobile and data plans for its customers. Its new unlimited data plan, known as T-Mobile One has made enormous changes in the wireless industry. All major U.S. carriers have responded since the new plan's inception last autumn. Verizon Communications is a reputed cellular phone service provider and was the biggest holdout, however, it has also started offering an unlimited data plan.

The Government cell phone service provider Verizon’s new plan is more expensive than T-Mobile's but, the company is promoting it’s network strength to justify its higher pricing. T-Mobile is immensely targeting Verizon for charging overages. To answer this, Verizon, the Government cell phone service provider, has to ensure utmost network quality.

Recently, at a Deutsche Bank conference, CFO Braxton Carter of the renowned cellular phone service provider T-Mobile, spoke about the impact of Verizon's new plan on the Un-carrier.

According to T-Mobile, there has been a consistent net add in its subscribers against all three major Government cell phone service providers for the last several years. T-Mobile regularly reports its porting ratios, i.e. the number of customers switching to T-Mobile versus those switching from it, with each of the wireless carriers every quarter.

Before Verizon's unlimited plan, T-Mobile's porting ratio with Verizon was the highest ever in the first quarter, i.e. around 3 to 1, as per the report by Carter. After the cellular phone service provider Verizon launched its unlimited offering, "For four days we went slightly negative. You know, in the 0.9. I think one day it was in the 0.8's," Carter said. "On the fifth day, it started getting back up into positive territory."

Porting ratios have improved every week subsequently. In the first week of March, Carter reported porting ratios around 1.5. Last week, it has scaled into the 2-to-1 range. In the first quarter of last year, T-Mobile posted a 1.34 porting ratio with Verizon.

T-Mobile’s actions to keep customers away from Verizon

A prime factor in T-Mobile's capability to augment net subscribers every quarter is its ability to decrease churn, i.e. the percentage of subscribers canceling every month. From 2013 to 2016, it has been observed that the churn fell from 1.69% to 1.30%.

In the previous year, T-Mobile has bagged the top position in the Nielsen Mobile Inisghts' customer satisfaction survey. Therefore, when Verizon introduced its unlimited plan, some of the T-Mobile subscribers were actually looking to switch.

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The main feature for growing customer loyalty is T-Mobile's various Un-carrier initiatives. Now, it is focusing on the pricing. T-Mobile started including taxes and fees in its advertised pricing and is allowing customers to keep their pricing the same for the life of their relationship with the wireless carrier. Several customers are avoiding Verizon as they will be unable to get back to their current T-Mobile plan at their present pricing.

T-Mobile, the popular cellular phone service provider, is giving potential customers all the reasons to switch and lock in its best pricing. It is also running a promotional offer for two unlimited lines for $100 every month after the introduction of Verizon's unlimited plan.

T-Mobile is striving to deliver the best value in wireless, so that customers do not look elsewhere for options.