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MetroPCS unveils new $40 unlimited plan

The prepaid wireless market has turned into a game of limbo: How low can it go?

MetroPCS today lowered the price of its monthly unlimited plan to $40 for limitless voice, texting and Web access. The carrier also said that its $45 plan will now include unlimited email, navigation and social networking applications (in addition to unlimited voice, texting and Web access). Both plans represent a $5 cut in pricing. The company is maintaining the price of its $50 plan for smartphones that gives subscribers complete HTML Web browsing and enterprise email access.

The new $40 plan undercuts TracFone Wireless' $45 unlimited plan, which was the previous floor price for unlimited prepaid plans. TracFone's Straight Talk plan offers unlimited voice, text messaging and 30 MB of data and runs on Verizon Wireless' network. Thus, the new MetroPCS plan is a further indication that competition in the prepaid market is intensifying.

MetroPCS' move startled some analysts.

"We are surprised that MetroPCS would have moved this quickly to adjust its pricing as we believe that business has generally been fine so far, but they might be trying to pre-empt the new competitors," Pali Research analyst Walter Piecyk wrote in a blog post. "These actions support our estimate of declining ARPU for 2010 compared to consensus which we believe shows little or no decline in ARPU in that more competitive year."

For more:
- see this release

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Comments (18) | Post a comment
More stories about Virgin Mobile   unlimited   prepaid   metropcs   Boost Mobile  

Comments

Price alone does not attract customers and cannot overcome other shortcomings such as a poor quality network or terrible customer service. Anyone see J.D. Power and Associates' non-contract wireless customer satisfaction study published today? www.jdpower.com MetroPCS ranks dead last while Boost Mobile ranks in the top three. MetroPCS is widely known for touting lower prices, and given their announcement, price seems to be the area of focus - again: for the same low price customers can get even more basic services like call waiting and caller ID, which already come included with Boost Mobile.

- Tatum Hawkins, Boost Mobile

Well, Tatum, Tracfone is still #1. NET10 is owned by Tracfone. Unfortunately for Boost, Tracfone's Straight Talk service is superior. I wouldn't touch MetroPCS with a 10 foot pole. Boost is has been a disappointment. Poor call quality and drops calls frequently.

I guess we do owe Boost a modicum of thanks for upending a market, that too often, was ripping its customers off with absolutely no regard. Thanks to Boost, cellular service prices are reasonable and no ridiculously inflated.

Tracfone is numbe one in overall value. Great phone company, Great service, great selectio of phones. Tracfone is te superior service provider.

CHOO CHOO! CHOO CHOO! All about Tatum Hawkin's Boost Mobile propaganda train! Tatum, have you ever met a Boost Mobile customer? They are so price sensitive they would change carriers for a blow pop. The reason Metro customers are so unsatisfied is because, like most prepaid customers, they are unsatisfied with paying for anything.

The prepaid market is really starting to get heated with more companies and deals popping up. I, myself though dont really need an unlimited, I usually use less than 400 minutes a month. Thats why I have Net10, it is a flat rate of 10 cents a minute and only 5 cents a text. There is no activation fees or other charges, no hidden fees that most companies get you with.

Post Paid MVNO VP: You sound scared. It's going to be OK. And Propaganda? In the business world it's called PR - you should try it sometime instead of alienting your customer base (if you are indeed a MVNO VP) by saying they are unstisfied with paying for anything. There's a reason Boost added over 770K subs this quarter with an ARPU increase and one of the best CSAT ratings in the industry - truthful PR, truthful advertising and an awesome product!

And for you TracFone devotees: "Boost Mobile is coming off its best quarter ever and the best quarter for ANY prepaid service provider since 2005" The previous record holder? TracFone.

Wow - what a harsh bunch...Calm down every body...There is room for all you MVNO's. Don't be mad a Boost because there $50.00 plan is better. They get talk plus walkie-talkie, web and text. You just can't beat that...It makes heads roll. I mean Boost could get nasty and add prepaid Broadband cards like Virgin Mobile or the Palm Pre and Samsung Dash (Instinct2) with the Walkie-Talkie built in....Now that would ruffle some feathers and give them an easy 1 million to 2 million more suscribers. The other MVNO's would be really PO'd....

MOST of you are just ignorant and dont know what your talking about metro pcs is the best service out there 5 dollars international, 40 dollars a month walkie talkie unlimited everything internet high speed you get covarage over 450 cities even if you go out of the coverage you can still get text for free metro is the way to go boost sucks and also i had their service and it was horrible and also all of the other companies

Did I hear the last comment correctly MetroPCS has Walkie Talkie?

Wow - didn't know mobile-to-mobile was included in that $50 dollar plan too...

no wonder people are going to Boostmobile in droves.

Duh - they stripped some of the countries from that $5dollar plan. I thought I saw a posting on one of the phone sites that said METROPCS is ending that offer.

Actually truth guy, I WAS a VP, but after shorting Virgin at $15, then buying at $0.85, and now selling, I am just a really rich douchebag who likes posting on fiercewireless when he isn't drinking Champagne on his boat. Tatum, kindly explain how Boost slashed commissions 30% for all distributors this week AND raised phone prices? Way to treat your base well! What other surprises are in store? Maybe a kick in the crotch?

I think that if a cell phone doesn't have great network coverage and service then it's not worth having a cheaper monthly rate, especially if your provider keeps dropping your calls. Some people may have the time to make three calls instead of one but I need a provider that's reliable. Fortunately, Straight Talk gives the best unlimited offer on the best network so I win all round.

My personal experience with Boost was not very pleasant. I hated the dropped calls and network outages. I think they really overloaded their network or something when they introduced the $50 unlimited.
My experience with Straight Talk the last two months has been quite good. Maybe VZ's network is more robust or whatever but I've had no problems so far. Time will tell.
I will not even consider Metro - not nationwide and coverage is lacking. Not worth the 5 bucks savings.

I know that Boost is the BEST, I get the best service and reception where ever I go, from Miami to New York, etc. I dont have problems with dropped calls. Metro was good as long as I was in the limited zones. This caused me to have to stay in the box, Boost took me out the BOX.

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