How T-Mobile Wants to Get Ahead of Competition
T-Mobile to start offering Netflix to its family-plan subscribers
America’s third-largest carrier, T-Mobile (TMUS), announced on Wednesday, September 6, that it will start offering family plan subscribers free access to Netflix’s (NFLX) streaming service starting September 12. The move comes amid fierce competition among the top four telecom companies with T-Mobile trying to differentiate its offerings from the likes of Verizon and AT&T.
This move could lead to other carrier-content partnerships. With AT&T’s acquisition of Time Warner (TWX) likely to go through, AT&T could offer something similar. It already started offering HBO to its customers with premium plans earlier this year.
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T-Mobile has been differentiating its services
T-Mobile has been successful in luring away customers from competitors. Verizon (VZ) changed its unlimited plans recently and put limits on video streaming quality. T-Mobile mentioned that average LTE speeds for Verizon (VZ) and AT&T (T) have fallen since the carriers revived their respective unlimited data plans.
T-Mobile also offers better download speed. According to OpenSignal, T-Mobile offers the highest download speed of 17.5 mbps as of June 29. Meanwhile, Verizon, AT&T, and Sprint (S) have download speeds of 14.9 mbps, 12.9 mbps, and 9.8 mbps, respectively. T-Mobile has been gaining users, while Sprint has been losing its users, as the graph above shows. The former has replaced the latter as the third-biggest carrier in the US over the last few quarters.