T-Mobile teams with Amazon, Google on prepaid 5G wireless
- T-Mobile renamed its MetroPCS prepaid wireless service as Metro by T-Mobile and started offering plans that include subscriptions to Amazon Prime and Google One, according to an announcement. Metro will begin launching 5G services and 5G-capable smartphones when the next-generation mobile broadband rolls out nationwide next year.
- Metro's top paid tier has a subscription to Amazon Prime, the e-commerce giant's membership plan that offers free two-day shipping on most products. Metro is the only wireless provider to offer plans with Google One, which gives users more data storage, direct access to Google experts and other exclusive services.
- Metro installed a pop-up store in New York City's Grand Central Terminal that lets visitors see interactive demos of its combined services on October 8-9.
T-Mobile's rebranding of its prepaid wireless plans and combined marketing push with tech giants Amazon and Google may give more mobile users a reason to try out one of its plans. Customer churn has dogged the prepaid wireless industry as many drop service or switch plans more often than those who maintain a monthly subscription with a carrier. Amazon's Prime tie-in may compel some prepaid customers to stick with their mobile plans in order to access the subscription features.
T-Mobile is currently in the middle of a merger with Sprint, a partnership that would use Sprint's mid-band 2.5GHz spectrum to support a stronger 5G network. Antitrust officials are said to be scrutinizing how the merger will affect the market for cellular service as other companies like Comcast and Charter develop mobile offerings, per Bloomberg. The merger of the third and fourth biggest wireless carriers will create a company with 127.2 million customers, making it a stronger competitor to Verizon (116 million customers) and AT&T (93 million). T-Mobile, as the new company will be called, plans to invest $40 billion in the next three years to upgrade to the faster 5G technology.
With a broader rollout of faster 5G mobile technology, marketers will have a more robust channel to support interactions with consumers. This tech is forecast to have an enormous effect on U.S. economic growth as it opens a way for more autonomous vehicles and smart appliances. Development of 5G is predicted to lead to 3 million new jobs, $275 billion in investment and $500 billion in economic growth in the U.S., Accenture estimates.
- T-Mobile / Business Wire Metro by T-Mobile Goes Live, Commits to 5G
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