Heading into the holiday season, T-Mobile will be looking to grab more subscribers by doubling data plans and offering free video streaming, and Strategy Analytics says the approach just might work.
In a new report, Strategy Analytics contends video will be the next area of competition for the carriers and T-Mobile is the first to enter the ring.
“Video is one of the fastest growing mobile data consumption types. With Binge On and its offer to double the LTE data allowance for Simple Choice customers, T-Mobile is removing consumers’ concern about blowing their data allowance or incurring competitors’ huge overage fees,” wrote Nitesh Patel, director of Wireless Media Strategies at Strategy Analytics. “Despite 24 video content services included today, the current absence of a few popular services from Binge On, especially YouTube—which according to Strategy Analytics’ consumer telemetry is generating the largest amount of data traffic among all mobile applications used—could be a disappointment, in particular for millennials who typically go on YouTube and social networks to catch the latest videos.”
That said, T-Mobile has strengthened its network and continues strong momentum going into the fourth quarter, and free streaming of any video remains a differentiator for T-Mobile.
Susan Welsh de Grimaldo, director of Wireless Operator Strategies at Strategy Analytics, says T-Mobile needs to get the word out about the major improvements it has made to its network, especially as it has built out on its stores of 700Mhz spectrum.
“The Un-carrier also needs to keep the pressure on Sprint as the latter promotes its ‘LTE Plus’ network improvements with its latest cut your rate in half promotion,” Welsh de Grimaldo said. “Binge On is adding value for customers and creating the buzz to showcase the “data strong” network to retain T-Mobile’s current subscribers and attract new customers in the Q4 holiday shopping season.”
Welsh de Grimaldo said that T-Mobile’s video optimization technology\, which makes Binge On possible, actually puts it ahead of the game.
“A crucial element to Binge On is video optimization, which can actually enhance the viewing experience while helping T-Mobile get in front of the huge anticipated growth in video traffic,” she said.