Did T-Mobile actually change the wireless industry?

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When T-Mobile announced its new approach to pricing, chief executive John Legere said that the move would change the wireless industry. Shortly after, Sprint also introduced plans that separate the cost of a phone from the data. With AT&T now taking the same approach, has T-Mobile actually succeeded in changing the industry?

Not so fast, said wireless industry analyst Jeff Kagan. While T-Mobile was certainly the first to move on this strategy, he said that framing AT&T’s move as a reaction probably gives the smaller carrier a bit too much credit. While T-Mobile was gaining subscribers, it was not eating into AT&T’s customer base heavily enough to prompt such a fast reaction. But, Kagan said, the fundamental change in these plans — separating the monthly cost of device and data — was a foreseeable change for the industry as smartphone growth in the United States slows. With fewer new smartphone subscribers, Kagan said, the major carriers have to work harder to keep customers from jumping ship to budget networks that may offer cheaper rates but fewer perks. More seasoned smartphone customers may decide, for example, that they’re happy to give up some coverage or call quality to save some money each month.


Did T-Mobile actually change the wireless industry?