Mobile without Borders
In the last part of this series, we saw that T-Mobile’s (TMUS) Simple Choice plan aided the company’s robust postpaid subscriber growth. T-Mobile continues to make its Simple Choice plan more attractive.
On July 9, 2015, T-Mobile announced its Mobile without Borders initiative. Elaborating on the initiative, T-Mobile stated in a press release, “Beginning July 15th, calls to, from and between the U.S., Mexico & Canada – whether mobile or landline – are included in our latest plans at no extra charge. And, when you’re in Mexico & Canada, you’ll use 4G LTE data straight from your Simple Choice 4G LTE data plan.”
Mobile without Borders to address high demand of wireless customers
Mobile without Borders should help T-Mobile tap into the significant voice traffic from the United States to Canada and Mexico. The initiative will also take care of international roaming expenses for T-Mobile customers in Canada and Mexico.
According to T-Mobile, 35% of international calls originating from the United States were to Canada and Mexico in the previous year. Also, small and medium business travelers predominantly go to these two countries while on international trips.
According to T-Mobile, the pricing of the Simple Choice plan with Mobile without Borders is highly attractive in terms of international long distance and roaming charges. It’s also attractive relative to comparable offerings of other top US wireless carriers, including AT&T (T), Verizon (VZ), and Sprint (S).
You can take a diversified exposure to T-Mobile by investing in the iShares U.S. Telecommunications ETF (IYZ). IYZ held ~5.6% in the wireless carrier on June 30, 2015.
For a diversified exposure to the wireless carrier, you may consider investing in the iShares Russell 1000 Value ETF (IWD). IWD held ~0.1% in T-Mobile on the same date.