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T-Mobile Will Increase Premium Data Allowances. It’s Bad News For Most Subscribers.

T-Mobile just announced a handful of upcoming changes to a few of its unlimited plans. Journalists covering the news are praising the carrier’s decision to offer unlimited Premium Data on the Magenta MAX plan. I think these journalists are falling victim to the bullshit T-Mobile filled its press release with:

Legacy smartphone plans are built for lower capacity 4G LTE networks, so Verizon, AT&T and even T-Mobile’s unlimited plans allow providers to lower your network priority if you’ve used a massive amount of data, which means that you might hit speed bumps if the network gets congested. Verizon and AT&T market this as ‘Premium Data’ and give most customers 50GB. But, there’s nothing premium about paying more for fast 5G that’s only in ‘some parts of some cities.’* Now we’re in the 5G era, and T-Mobile has lit up the highest-capacity 5G network available — a network so powerful it can start unleashing the power of 5G to deliver unlimited Premium Data.

Let’s unpack that.

First, T-Mobile is giving way too much credit to 5G. Most of T-Mobile’s customers don’t even have 5G-compatible phones. Premium Data is still available to customers limited to 4G connections.

Second, deprioritizing ultra-heavy data users is a pretty efficient way for network operators to manage resources. Under the usual 50GB-ish per month thresholds, only ~1% of unlimited plan subscribers use enough data to get deprioritized. Users that T-Mobile deprioritizes will experience slower speeds when network resources are under heavy demand. However, deprioritized users can still experience normal speeds when networks aren’t under a heavy load. According to T-Mobile’s own website, deprioritization usually doesn’t have practical consequences (emphasis mine):

Where the network is lightly loaded in relation to available capacity, a customer whose data is prioritized higher than other traffic will notice little, if any, effect from having higher priority. This will be the case in the vast majority of times and locations.

I guess you could say T-Mobile’s Premium Data is only useful in “some parts of some cities.”

The utility of Premium Data hinges on how much Premium Data is being used by other network users. By including unlimited Premium Data with the Magenta MAX plan, T-Mobile is slightly degrading service quality for tens of millions of users in order to improve service for a tiny fraction of the company’s heaviest data users. In my view, it’s a bad tradeoff from a network management perspective. T-Mobile is choosing to make the tradeoff because it gives the company a new perk to advertise on its most premium plan.

Update abstract

T-Mobile To Update Unlimited Plans

On February 24, T-Mobile will update its Magenta and Magenta Plus plans. While the Magenta plan will keep its current name, T-Mobile will rename the Magenta Plus plan “Magenta MAX”.

High-priority data

Currently, customers on the Magenta and Magenta Plus plan get 50GB per month of high-priority data. Soon, the allotment will double to 100GB for Magenta subscribers. Magenta MAX subscribers will have limits dropped entirely and will receive unlimited high-priority data. For a while now, Verizon and AT&T have been referring to high-priority data as “Premium Data”. It looks like T-Mobile is about to follow suit with the same terminology.

Hotspot allowances

The hotspot/tethering allotment on the Magenta plan is moving up from 3GB per month to 5GB per month. On the Magenta Plus/MAX plan, the allotment is doubling from 20GB to 40GB.

Netflix for single-line plans

Until now, T-Mobile has only offered free access to Netflix for subscribers with family plans. Once the plan updates go live, T-Mobile will start offering Netflix to single-line subscribers as well.

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Does T-Mobile Have The Best 5G?

T-Mobile has started bragging about having the best 5G speeds in Opensignal’s latest report. Here’s an excerpt from today’s press release from T-Mobile:

New independent data from Opensignal, based on real world customer usage from millions of device measurements, shows T-Mobile customers now get the fastest 5G download speeds, fastest 5G upload speeds AND a 5G signal more often than anyone else.

I’ve been critical of selection bias issues inherent in Opensignal’s methodology. I continue to think there are serious selection bias issues with Opensignal’s latest 5G metrics. Still, I don’t think my qualms are significant enough to dismiss T-Mobile’s apparent lead in 5G speeds and 5G coverage. T-Mobile is killing it. Here’s another bit from today’s press release:

With the first and largest nationwide 5G network, T-Mobile’s Extended Range 5G covers more than 280 million people across nearly 1.6 million square miles – offering 2.5x more geographic coverage than AT&T and nearly 4x more than Verizon. With Sprint now part of T-Mobile, the Un-carrier is widening its lead, using dedicated spectrum to bring customers with capable devices download speeds of around 300 Mbps and peak speeds up to 1 Gbps. The Un-carrier’s Ultra Capacity 5G already reaches more than 1,000 cities and towns and covers 106 million people.

Early in its 5G rollout, T-Mobile relied on low-frequency spectrum around 600MHz. While this spectrum was great for coverage, it had lousy speed potential. In 2020, T-Mobile put a lot of effort into bragging about how it led the nation in 5G coverage. While the bragging was technically accurate, the whole thing was bullshit in practical terms. 5G delivered with T-Mobile’s low-frequency spectrum was often slower than a typical 4G connection.

Recently, T-Mobile started rolling out large-scale 5G deployments using mid-band spectrum. T-Mobile’s mid-band 5G now covers about a third of Americans. Mid-band 5G actually delivers speeds that are substantially better than consumers are used to with 4G.

Verizon is still crushing the competition in terms of coverage with ultra-fast, millimeter wave 5G. However, Verizon’s achievements with millimeter wave don’t have much value for consumers yet. Even Verizon’s millimeter wave coverage is lackluster, and practical applications for ultra-fast cellular speeds are rare.

While I think T-Mobile legitimately holds the top spot for 5G coverage and average 5G speeds, I also think Verizon will overtake T-Mobile as 5G rollouts reach more mature stages. In my view, the interesting thing to watch will be whether T-Mobile or AT&T ends up with the second-place spot in the 5G competition.1 T-Mobile’s spectrum holdings and financial position may give the network a significant edge over AT&T.

T-Mobile Launches Inseego 5G MiFi M2000 & New Hotspot Plans

Last week, T-Mobile announced new mobile hotspot plans and the release of the Inseego 5G MiFi M2000.

Inseego 5G MiFi M2000

The Inseego 5G MiFi M2000 is T-mobile’s fanciest hotspot, and I believe the company’s first 5G-capable hotspot. The device supports both 4G service and sub-6 5G service. It does not support millimeter wave 5G, but that may be unimportant for now since T-Mobile’s millimeter wave coverage is extremely limited.

The hotspot has a base price of $336 (or 24 monthly installments of $14). With a promotion T-Mobile is running, customers that add a new line and purchase the device on a 24-month installment plan can get the M2000 for 50% off ($168 paid in $7 per month installments).

While I haven’t got my hands on the M2000 yet, I have been testing a very similar model offered by Verizon, the M2100, and I’m impressed.

New mobile hotspot plans

With the release of the M2000, T-Mobile also launched a handful of new plans for mobile hotspot devices. Most notably, a plan with a 100GB monthly allotment costs only $50 per month. Well-priced plans with 10GB and 30GB monthly data allotments are also available. T-Mobile shared this graphic in its press release:

Image detailing T-Mobile's new hotspot plans

While T-Mobile’s new offerings are excellent, the graphic represents T-Mobile’s competition unfairly. AT&T and Verizon don’t always offer plans with the data allotments shown in the graphic. To show prices competitors charge in these cases, T-Mobile slyly includes competitor’s overage charges. Additionally, T-Mobile doesn’t mention Verizon’s add-on hotspot plans. Verizon’s add-on plans are available to a substantial portion of the carrier’s subscribers, and the plans offer good value: 15GB for $20 per month or 30GB for $30 per month.1

T-Mobile’s Ultra Capacity 5G

In a press release shared yesterday, T-Mobile started referring to some of its 5G services as Ultra Capacity 5G. We’ve seen this kind of branding move before. Verizon calls its 5G service using low-frequency signals 5G Nationwide and its millimeter wave service 5G Ultra Wideband. AT&T calls its millimeter wave service 5G+.

T-Mobile’s Ultra Capacity 5G will typically deliver excellent speeds, but it isn’t well-suited for extensive coverage. Ultra Capacity 5G stands in contrast with T-Mobile’s low-frequency 5G, which T-Mobile is branding as “Extended Range 5G.” T-Mobile’s Extended Range 5G has better coverage potential than Ultra Capacity 5G, but Extended Range 5G will tend to deliver slower speeds.

I expect T-Mobile intentionally copied the word “ultra” from Verizon’s term 5G Ultra Wideband. While Verizon reserves the phrase Ultra Wideband for millimeter wave 5G, T-Mobile is using Ultra Capacity to refer to both mid-band and millimeter wave 5G.1 I’m guessing T-Mobile is hoping consumers will incorrectly conflate the two terms.

While I’m not a fan of T-Mobile’s deceptive naming, I have to acknowledge the company’s cleverness. T-Mobile is leading the nation in mid-band 5G coverage, but the network is way behind AT&T and Verizon in millimeter wave coverage. By using a single branded term for both mid-band 5G and millimeter wave 5G, T-Mobile can brag about how extensive its Ultra Capacity 5G coverage is without drawing attention to how little millimeter wave coverage the network offers.

Trouble At Teltik

Teltik, a reseller of T-Mobile business lines, has been running into trouble lately. This summer, Teltik abruptly suspended activations of new lines. Starting yesterday, many subscribers began to report service outages. Hundreds of comments have been shared on a Reddit thread about the current issues.

Subscribers who lost service yesterday were often told Teltik would restore service within two hours. That appears not to have been the case. Today, Teltik’s website has a banner running across the top that reads, “Teltik is working aggressively with T-Mobile to resolve the service disruption we are experiencing. We anticipate a resolution by the end of the morning.”

Reports about the issues vary. Several commenters on the Reddit thread reported receiving an email from T-Mobile explaining that their accounts had been deleted. One user reported receiving the email three separate times over the last day. While most commenters reported losing service yesterday, a handful of commenters say their Teltik service hasn’t been interrupted. At least one commenter reported that his or her service worked yesterday and only ceased to work today.

I’m not sure what’s going to happen. I don’t think Teltik will manage to resolve the issue this morning.

2:47 MT Update: Teltik has updated the notice on its website. It now reads, “Teltik is working aggressively with T-Mobile to restore service on all disrupted lines. We anticipate all service interruptions to be resolved by the end of the day.”

Rumors About T-Mobile SIMs on Tello

While Tello has historically used Sprint as its host network, Tello announced plans to transition to T-Mobile’s network following the merger between Sprint and T-Mobile. It looks like that transition may be starting.

A user in Reddit’s NoContract community recently shared a transcript from a conversation with a Tello support agent. Among other things, the support agent mentioned a date for the beginning of Tello’s transition to the T-Mobile network:

Starting 12/07/202, Tello will switch to the T-Mobile Network

Based on the rest of the conversation, it looks like the agent was suggesting 12/07/2020 will be the first date new subscribers can order service and SIM cards running over T-Mobile’s network. When the support agent was asked when existing Tello customers would be moved over to T-Mobile’s network, he could share a specific date. However, the agent suggested existing customers that wanted to transition to T-Mobile as soon as possible may be able to order new SIM cards at their discretion:

However, you will have the option to purchase a Tello SIM if you want to switch networks.

Tello’s website as of 12/7/2020

When I looked at Tello’s website early today, I didn’t notice major changes. The coverage page still showed a Sprint coverage map. The page about Tello’s bring-your-own-device program still suggested Tello ran over Sprint’s network:

Screenshot from Tello's website suggesting the service works for phones built for Sprint's network

I’m not sure what to think. Tello may already be shipping T-Mobile SIM cards, and an update to Tello’s website could be coming soon. It’s also possible the transition to T-Mobile’s network didn’t start today. Whatever is going on, I expect we’ll see Tello beginning its transition soon. A blog post Tello shared in October indicated that the carrier planned to start transitioning to T-Mobile’s network by the end of 2020.

Thanks For Approving My Merger!

T-Mobile’s former CEO, John Legere, was extremely successful in branding himself as an advocate for consumers. While I admire Legere’s success, I don’t think he lived up to the persona he created.1

Today, Legere shared a tweet that reaffirmed my feelings:


While I think a lot of criticism of Ajit Pai has been unfair, “advocating for wireless competition” is quite the phrase. It feels particularly insincere coming from Legere who made the better part of $100 million from a bonus and other compensation tied to the closure of the merger between T-Mobile and Sprint. I’m on the record saying I expected the merger to be bad for consumers. Eight months later, I continue to stand by my view.

FCC Hits T-Mobile With A $200 Million Fine For Sprint’s Abuse Of The Lifeline Program

The FCC fined T-Mobile $200 million for Sprint’s abuse of the Lifeline program. Under the Lifeline program, wireless carriers can get a nearly $10 subsidy for each eligible, low-income American they provide phone service to. Often, the Lifeline subsidy is large enough for carriers to offer basic service at no cost to eligible consumers.

According to the Lifeline program rules, carriers are only supposed to get subsidies for lines that are in active use. Lines that go unused are supposed to become ineligible for a subsidy. Here’s how the FCC explains the rationale for rules about usage:

The FCC developed this and other rules after investigations showed that companies were aggressively selling free Lifeline service, knowing that they would get paid each month even if consumers didn’t use their phones. Since there was no bill, consumers had no incentive to relinquish the subscription.

Before Sprint’s merger with T-Mobile, the carrier was receiving subsidies for almost a million lines that we’re in violation of the usage rules. Since T-Mobile now owns Sprint, T-Mobile is on the hook for the FCC’s $200 million fine. The FCC’s press release describes the fine as the “largest fixed-amount penalty to be paid in Commission history.”

T-Mobile’s Update On Mid-Band 5G

In today’s press release from T-Mobile, the company claims that it has doubled the number of cities where it offers mid-band 5G service over the last month. The company expects to further expand mid-band, 5G coverage by the end of 2020:

Engineers are lighting up 1,000 sites per month with 2.5 GHz 5G and T-Mobile has plans to cover 100 million people with mid-band 5G by the end of the year.

While the press release involves an obnoxious amount of hype and marketing-speak, I think T-Mobile’s basic claim that mid-band service will bring consumers what they expect from 5G is more-or-less accurate. Low-band 5G doesn’t deliver speeds much better than what consumers are used to with LTE connections. Millimeter wave 5G coverage is still extremely sparse. With mid-band 5G, network operators can offer high speeds while still covering decent-sized areas.

For more information, see my page dedicated to T-Mobile’s 5G strategy.