Dubbed "The Full Monty", the UK unit of Deutsche Telekom claims its new tariffs are the only ones in the country to offer unlimited calls, texts and data.
IHS Global Insight Perspective | |
Significance | The move represents an about-face for T-Mobile, which scrapped its only unlimited data plans some years ago when ramping smartphone use began to pressurise network capacity. |
Implications | 3 UK offers a Samsung Galaxy SII with unlimited data for GBP33—the most similar offer to T-Mobile's GBP36 tariff with the same handset—revealing that the new offer is far from ground-breaking. |
Outlook | T-Mobile UK, part of Everything Everywhere (EE), is flexing its muscles since it has recently begun sharing Orange UK's 3G network, thus easing somewhat the growing demand on its bandwidth. |
T-Mobile UK has announced it has launched a range of all-you-can-eat data plans, offering unlimited calls (within T-Mobile's network), SMS and mobile broadband use, without any fair use restrictions, from GBP36 (USD56.5) per month on a 24-month contract. Dubbed "The Full Monty", the UK unit of Deutsche Telekom claims its new tariffs are the only ones in the country to offer unlimited calls, texts and data.
Customers signing up to The Full Monty 24-month plan will also have access to unlimited Wi-Fi and there are no restrictions on mobile internet usage, meaning that consumers can access services including tethering, streaming and downloading. The tariffs range from GBP36 to GBP61 per month, largely based on handset subsidies, and will be made available from February 2012.
Outlook and Implications
- About-Face for T-Mobile Data Offers: T-Mobile UK says that it is meeting rising demand for mobile internet use of over 250% over the last two years, reflecting the consumer trend of being connected wherever they are, adding that the tariffs continue to offer a more personal level of communication with unlimited calls and texts. The move represents an about-face for T-Mobile, which scrapped its only unlimited data plans some years ago when ramping smartphone usage began to pressurise network capacity. A year ago, the operator was forced into an embarrassing u-turn on its plan to halve the data allowance for its contract customers to 500 MB following a public backlash (see United Kingdom: 13 January 2011: T-Mobile Performs U-Turn on Mobile Data Fair-Usage Reduction). T-Mobile received widespread criticism in particular for its statement advising customers that "if you want to download, stream and watch video clips, save that stuff for your home broadband".
- Ravenous Data Demand Driving Competition: Rival 3 UK has offered unlimited data plans starting at GBP27 per month on a 24-month contract, albeit without unlimited calls and SMS, reflecting the Hutchison operator's focus on mobile broadband. Nevertheless, 3 UK offers a Samsung Galaxy SII on an unlimited data plan for GBP33—the most similar offer to T-Mobile's GBP36 tariff offering the same handset—revealing that the new offer is far from ground-breaking. 3 UK has revealed that 97% of the traffic that travels through its network is now mobile data-based, with a 427% increase in data usage in the 14 months between June 2010 and September 2011, adding that in a market flooded with tablets and smartphones, there can be no denying the importance of a reliable, powerful network (see United Kingdom: 1 November 2011: 3 UK Reveals 97% of Its Mobile Traffic Is Now Data).
- T-Mobile Leverages Combined Network Muscle with Orange UK: T-Mobile UK—part of Everything Everywhere (EE), the UK joint-venture of France Telecom and Deutsche Telekom—is flexing its muscles since it has recently begun sharing Orange UK's 3G network, thus somewhat easing the growing demand on its bandwidth. Meanwhile, EE has recently hinted that it may rebrand both Orange UK and T-Mobile UK this year following a branding review late in 2011 (see United Kingdom: 19 January 2012: Everything Everywhere to Rebrand in 2012—Report). The JV's operators state that while the development of an additional or new brand is an "option under consideration", this may be complementary to or to substitute one or both of the existing brands of T-Mobile and Orange. The move would likely generate significant savings for owners France Telecom and Deutsche Telekom, but both companies are staying tight-lipped on their future branding plans for the UK. Meanwhile, EE is reportedly planning to sell off its surplus spectrum as early as next month, as it must dispose of some of the 1,800-MHz spectrum it owns as a condition of its merger (see United Kingdom: 11 January 2012: Everything Everywhere Plans Sale of 1,800-MHz Spectrum for February 2012—Report). EE has recently announced it has extended an LTE network trial with BT using EE's spectrum in the 800-MHz digital dividend band in the remote English county of Cornwall until June 2012, designed to investigate the application of LTE in bringing high-speed broadband to underserved rural areas (see United Kingdom: 26 January 2012: Everything Everywhere and BT Extend UK Joint LTE Trials).