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. [Read more from Kapitall: Memory Prices on the Surge: Will These Semiconductor Stocks Surge] 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.
Do you think T-Mobile's plan will complicate things for these wireless providers? Use the list below to begin your own analysis. 1. United States Cellular Corporation ( USM): Operates as a wireless telecommunications service provider in the United States. Market cap at $3.71B, most recent closing price at $43.87.
2. NTELOS Holdings Corp. ( NTLS): Provides integrated communications services primarily in Virginia, West Virginia, and Tennessee. Market cap at $370.87M, most recent closing price at $17.48.
3. T-Mobile US, Inc. ( TMUS): Offers mobile communications services under the T-Mobile brands in the United States, Puerto Rico, and the U.S. Virgin Islands. Market cap at $18.79B, most recent closing price at $25.36.
4. Verizon Communications Inc. ( VZ): Provides communication services. Market cap at $133.55B, most recent closing price at $46.20.
5. Sprint Corp. ( S): Provides wireless and wireline communications services to consumers, businesses, and government users in the United States, Puerto Rico, and the U.S. Virgin Islands. Market cap at $27.37B, most recent closing price at $6.00.
6. AT&T, Inc. ( T): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap at $181.20B, most recent closing price at $33.75.
( List compiled by James Dennin, a Kapitall Writer. Analyst ratings sourced from Zacks Investment Research, market capitalization and most recent closing prices sourced from Yahoo! Finance. All other data sourced from Finviz.)