The mobile virtual network operator Ting is offering new subscribers unlimited talk, unlimited texts, and 20GB of data for only $20 per month. Customers who take advantage of the deal will receive promotional pricing though the end of the year. Once 2020 starts, customers will have to pay Ting’s usual rates.
Introductory offers are common in the wireless industry, but Ting’s 20 for 20 deal is unusual. Users aren’t locked into any service at regular rates. Customers are permitted to take advantage of the deal for several months and end service before 2020. When other companies offer deals with similar structures, I often assume gimmicks will be involved. Companies may not remind customers that rates will increase, or cancellation processes may be unnecessarily complicated. I think Ting is planning to run its promotion with integrity. Below is an excerpt from a Reddit comment by a Ting employee (emphasis mine):
20GB is a lot of data. The amount is especially surprising when considering Ting’s regular data rate at the moment is $10 per GB (and sometimes higher). Someone on the 20 for 20 plan who used the full data allotment would have to pay over $200 per month for a single line of service with Ting’s regular rates. I can’t imagine many people who use data that heavily will be interested in sticking with Ting after the promotional pricing ends.
Ting is probably banking on the expectation that many subscribers that join during the promotion won’t use anywhere near 20GB of data. That of course begs the question of why Ting didn’t just run a similar promotion with a smaller allotment of monthly data. I’m not sure what Ting’s rationale is, but I’m betting that Ting believes customers who don’t use a lot of data may still be attracted by the 20GB data allotment. A similar phenomenon occurs in the web hosting industry. Lots of consumers want to purchase hosting from companies that allegedly offer unlimited resources even though most websites have modest hosting requirements.
Networks and price structures
Ting offers service on both T-Mobile and Sprint’s networks, but the 20 for 20 offer is only available on the Sprint network. The network restriction could be related to Ting’s plan to transition away from offering service on T-Mobile’s network and begin offering service on Verizon’s network. However, apart from the planned transition, I think the promotion would likely not be cost-effective if offered over T-Mobile’s network. I’ve previously seen hints suggesting Ting has far better rates negotiated with Sprint than T-Mobile. The structure of the 20 for 20 promotion seems to further support that impression.
If Ting does get far better rates with Sprint, it leaves me wondering why Ting doesn’t offer Sprint-based service at better rates than service over other networks. My best bet is that having only one pricing structure keeps things simple for Ting’s customers, but there are other plausible explanations. Maybe a commitment to a single pricing structure gives Ting leverage in negotiations with network operators. Who knows?