T-Mobile Steps Up Its Mobile Wireless Price War

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By Jacob Maslow

TMobile Store in Pasadena CaT-Mobile is backed by Deutsche Telekom. Deutsche Telekom has deep pockets, and that explains why T-Mobile (NYSE:TMUS) can price its wireless services the way it does. There is currently a price war for going on for wireless plans in the United States and the big winner of course is the consumer. T-Mobile has made a lot of waves in offering highly discounted mobile data and voice rates in certain metropolitan markets in the United States.

Well, it’s looking to repeat that market shake-up in the business customers space. There’s a huge demand for wireless data lines for businesses. Businesses need to get on the Internet wirelessly too. T-Mobile recognizes this and has announced new plans that are sure to shake up the industry.

How cheap are these plans? T-Mobile is offering businesses ten lines at $16 each per line. Each line comes with a 1GB of high-speed data per line. If you want a higher speed, you can pay more.

How attractive are these rates? These rates are around 40% lower than the prices charged by T-Mobile’s biggest competitors, Verizon (NYSE:VZ) and AT&T (NYSE:ATT).

The business market is huge. How huge? Verizon and AT&T have a total market share of $72 billion in annual revenues. T-Mobile, on the other hand, has a measly $4 billion share of this market. Thanks to its aggressive pricing, expect this share to increase.

As awesome as this is for consumers, this is quite a costly gambit for Deutsche Telekom and T-Mobile. The market has to stabilize for market shares to solidify and for pricing to solidify. Regardless, as far as consumers are concerned, this is nothing but great news.

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