James Dennin, Kapitall: T-Mobile is eliminating roaming costs to court international customers. Will anyone pick up?
Globe-trotting T-Mobile (TMUS) customers are about to see their phone bills plunge. In an effort to court international and corporate customers who travel frequently, the wireless company is dropping roaming charges and allowing its customers to pay a low, flat rate for calls worldwide.
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Roaming costs – an industry standard – can add as much as 90% to a phone bill. According to the company, customers who amass roaming chargers at rival AT&T (T) would pay a whopping $1500 for a combination of data usage, texting, and phone calls abroad.Patrons of T-Mobile's plan would only pay about $6.40. Inflationary rhetoric aside, that's a pretty hefty price drop. And while AT&T has a number of international plans to lower the cost significantly, nothing in the industry approaches T-Mobile's rate.
- T-Mobile will also offer data service for free (although it'll be slower).
- And T-Mobile customers can purchase unlimited calls to about a hundred different countries for a flat rate of about $10 a month.