This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

T-Mobile Bets 'No Contract' Attracts Users

Stocks in this article: PCS BBRY GOOG T S VZ

NEW YORK ( TheStreet) - T-Mobile is hoping to shake-up the mobile phone market with a "no contract" monthly plan aimed at attracting the millions of customers frustrated by being lock-into a multi-year contract with a less than benevolent service provider.

But, there is a catch. "No contract" plans mean you pay full price for your phone as it's done in many parts of the world. No more paying for that shiny handset as part of your monthly fee. T-Mobile is betting that the "no contract" plan can bolster the company in the battle for users with Verizon, Sprint and AT&T.

To win some media attention, T-Mobile is planning a media event today to discuss the completion of their merger with MetroPCS (PCS) and the start of their next-generation LTE/4G services in at least two cities.

The merger recently won approval from U.S. and European regulators, among the final steps in a process that is likely to be completed by mid-April when MetroPCS shareholders meet to vote on the deal. The result will be a new, publicly-traded company with Germany's Deutsche Telekom owning nearly 75%.

Shares of MetroPCS slipped 0.5% to $10.55 in early trading.

As for the switch from their current 4G technology to LTE, the merged company will gain new spectrum allowing it to reconfigure portions of T-Mobile and MetroPCS' current frequency bands to handle more advanced technologies.

The first two cities to get super-high-speed LTE data capabilities are expected to be Kansas City and Las Vegas. T-Mobile has also been testing LTE here in New York with positive results being reported. The Blackberry (BBRY) Z10 and Samsung's Galaxy Nexus II phablet (part phone, part tablet which runs on Google's (GOOG) Android OS) are expected to be the first two LTE-capable handsets announced.

As for new service pricing plans, according to a page which just appeared on T-Mobile's Website it looks like customers with individual and family plans will be able to choose from these new offerings. All are expected to offer unlimited talk, text and Web access plus at least 500 MB of high-speed data at $50 per month. Larger "buckets" of high-speed data will be available in 2 GB increments as well as a totally unlimited everything plan are available at extra cost, accordeing to T-Mobile. Family plans of multi-handsets will be discounted.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs