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T-Mobile’s Simple Choice Plan Adopted by More Customers in 2Q15

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T-Mobile’s Simple Choice plan

In the earlier parts of this series, we learned about T-Mobile’s (TMUS) solid postpaid subscriber growth. The Simple Choice plan is a key part of the wireless carrier’s strategy. The rising popularity of the plan has positively affected subscriber growth. Simple Choice largely applies to the wireless carrier’s postpaid base. In 2Q15, plan adoption grew to 93% of the telecom company’s postpaid subscriber base.

T-Mobile’s Simple Choice is a “no contract” unlimited plan. You should note that only Sprint (S) and T-Mobile (TMUS) offer unlimited plans, which include options for unlimited data. Verizon (VZ) and AT&T (T) don’t provide unlimited plans. However, they do offer high-data-usage plans.

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The 2Q15 sequential take-up growth of T-Mobile’s Simple Choice unlimited plan was marginal. But this is because at 92% in 1Q15, plan adoption was already high. But the YoY (year-over-year) growth in take-up of the plan has been significant. Adoption by T-Mobile’s postpaid subscriber base was 80% in 2Q14.

T-Mobile’s other plans

T-Mobile launched other new plans in June and July 2015. A key new plan is Jump! On Demand—a device-leasing plan. The carrier also launched its Mobile without Borders initiative to cater to the voice, text, and data traffic between the US, Mexico, and Canada.

The initiative eliminates the roaming charges for customers in Mexico and Canada, and gives them unlimited texting and calling to these two countries without additional charges.

You can get exposure to T-Mobile while diversifying risk by investing in the iShares Russell 3000 ETF (IWV) or the iShares Russell 1000 Value ETF (IWD). IWV invested ~0.05% of its portfolio in the wireless carrier as of July 31, 2015. T-Mobile made up ~0.1% of IWD’s holdings on the same date.

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