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T-Mobile To Put Limits On Its Unlimited Plans

Written by on February 2, 2017
T-Mobile US Inc (NYSE:TMUS) believes a minuscule number of users of its unlimited data plans using 4G LTE are abusing its network and it has rolled out plans to bring those users to line by putting restrictions on them after informing them.
T-Mobile CEO John Legere put it this way on Twitter:
 Mr. Legere made his case for the restrictions in a blog post:

Here’s what’s happening: when customers buy our unlimited 4G LTE plan for their smartphones we include a fixed amount of LTE to be used for tethering (using the “Smartphone Mobile HotSpot” feature), at no extra cost, for the occasions when broadband may not be convenient or available. If customers hit that high-speed tethering limit, those tethering speeds slow down. If a customer needs more LTE tethering, they can add-on more. Simple.

However, these violators are going out of their way with all kinds of workarounds to steal more LTE tethered data. They’re downloading apps that hide their tether usage, rooting their phones, writing code to mask their activity, etc. They are “hacking” the system to swipe high speed tethered data. These aren’t naive amateurs; they are clever hackers who are willfully stealing for their own selfish gain. It’s a small group – 1/100 of a percent of our 59 million customers – but some of them are using as much as 2 terabytes (2,000 GB!) of data in a month. I’m not sure what they are doing with it – stealing wireless access for their entire business, powering a small cloud service, providing broadband to a small city, mining for bitcoin — but I really don’t care!

Mr. Legere did not mince words when he wrote:

We are going after every thief, and I am starting with the 3,000 users who know exactly what they are doing.

 

Further details about T-Mobile’s plans are here.

T-Mobile is already unique in offering an unlimited data plan that also includes 7 GB of data for tethering. T-Mobile puts certain heavy users through network deprioritization to ensure less heavy users do not suffer.

T-Mobile’s market capitalization is $31 billion and it has a spectacular P/E ratio of 119 compared to AT&T with nearly $200 billion in market cap and Verizon with $180 billion of market capitalization.