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Analyst View: T-Mobile ushers in new paradigm with Mobile Without Borders

London - 9 July 2015

As part of T-Mobile’s series of ‘Un-carrier Amped’ service updates, the carrier has announced that its postpaid and prepaid Simple Choice plans will now include Canada and Mexico in its service area. That means calls to mobile phones and landlines in those countries and roaming within them are included in T-Mobile Simple Choice plans at no additional cost. Moreover, LTE data use within Canada or Mexico will be deducted from a user’s existing Simple Choice data bucket.

Lynnette Luna, Principal Analyst at Current Analysis, says:

"Canadian and Mexican calling plans have increasingly become a competitive focal point for postpaid and prepaid carriers during the last year. T-Mobile has dramatically upped the ante here by creating a plan that covers the North American continent and includes high-speed data access—at no additional cost. Inclusive international data offerings to date have largely been relegated to 2G speeds."

"T-Mobile should generate additional interest from the Hispanic community—a key consumer segment—consumer travelers and a wide range of business customers that have North American operations and are looking to cut roaming costs and gain more cost certainty around their international wireless usage. T-Mobile indicates that more than 70% of international trips taken by small and mid-sized business travelers were to Mexico and Canada."

"Rivals, especially AT&T, should quickly respond. T-Mobile beats AT&T to the punch by extending its footprint into Mexico. Through its acquisitions of Lusacell and Nextel Mexico, AT&T has been planning a single, contiguous US-Mexico mobile service area."

"International roaming and calling has been a significant revenue generator for all carriers, but T-Mobile is ushering in a new paradigm. T-Mobile has negotiated some extremely competitive reciprocal roaming rates for both voice and data with the top two carriers in both Canada and Mexico. We will see Canadian and Mexican carriers now develop reciprocal offers with roaming on T-Mobile’s network."

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