What’s the news
T-Mobile is starting an invitation-only pilot for in-home internet service on LTE with the goal of connecting up to 50,000 homes this year in rural and underserved areas of the country, laying the foundation for the New T-Mobile’s plans to disrupt the home broadband market.
Why it matters
With its scale and network capacity, the New T-Mobile can disrupt one of the most un-competitive and un-customer-friendly industries in existence and save American consumers billions of dollars in the process.
Who it’s for
For now, only a limited few T-Mobile customers – the goal is to reach 50,000 households this year, less than .04% of U.S. households. But the New T-Mobile plans to cover more than half of U.S. zip codes by 2024 with the capacity for 9.5 million households to cut the cord.
The Un-carrier is prepping to disrupt one of the most uncompetitive industries in existence. Today, T-Mobile (NASDAQ: TMUS) began piloting home Internet service, sending invites to a limited group of T-Mobile customers in rural and underserved markets for high-speed fixed wireless service. It’s all part of the Un-carrier’s effort to give Americans real choice and competition for home broadband – and save consumers billions – with the New T-Mobile.
The T-Mobile Home Internet pilot is offered exclusively in areas we expect to deliver speeds of around 50 Mbps through fixed unlimited wireless service over LTE – with no data caps. It’s just $50 per month with AutoPay, and because it’s from T-Mobile, there are no annual service contracts, no hidden fees and no equipment costs. Setting up the in-home router is simple, and pilot customers get support from a dedicated team of real people – from the company that consistently ranks #1 in customer service satisfaction year after year.
Due to LTE network and spectrum capacity constraints, the T-Mobile Home Internet pilot is limited by invitation-only to existing customers in specific areas, with the goal of reaching 50,000 households by the end of the year – or slightly less than 0.04% of U.S. households. But if T-Mobile’s pending merger with Sprint is approved, with the added scale and capacity of the New T-Mobile, the Un-carrier plans to cover more than half of U.S. households with 5G broadband service – in excess of 100 Mbps – by 2024. And Americans stand to save billions. Today, consumers typically pay around $80 per month for wired in-home broadband service – $960 per year. Thanks to lower prices and more competition, one economist estimates that the New T-Mobile will save customers up to $13.65 billion a year on home broadband by 2024!
“Two weeks ago, I laid out our plans for home broadband with the New T-Mobile. Now, we’re already hard at work building toward that future,” said John Legere, CEO of T-Mobile. “We’re walking the walk and laying the foundation for a world where we can take the fight to Big Cable on behalf of consumers and offer real choice, competition and savings to Americans nationwide.”
Almost half of American households have no competitive choice for high-speed in-home broadband with speeds of 100 Mbps, and in rural areas, more than three quarters have no high-speed broadband service or only one option available. And when there’s no choice, customers suffer. It’s no wonder internet service providers and cable and satellite TV companies have the lowest customer satisfaction ratings out of 46 industries according to ACSI (American Customer Satisfaction Index)! The New T-Mobile will be armed with spectrum and network assets that will build the highest capacity wireless network in U.S. history, covering millions with 5G, not just a few people in a few blocks of a few cities like the other guys. The New T-Mobile will have the capability to cover more than half of U.S. zip codes with un-wired and un-cabled in-home broadband by 2024 and will be able to support 9.5 million American households for its high-speed in-home broadband service.
Current T-Mobile customers in select areas eligible to participate in the pilot will receive T-Mobile Home Internet invitations this week by email and U.S. mail with information on how to sign up.
During congestion, Home Internet customers may notice speeds lower than other customers due to data prioritization. Sales tax & regulatory fees included in monthly service price for qualifying accounts. Qualifying account and credit approval required. For use only with T-Mobile LTE Wi-Fi Gateway for in-home use at location provided at activation. If canceling service, return gateway or pay $207. Video streaming resolution depends on available speeds. AutoPay: Without AutoPay, $5 more. May not be reflected on 1st bill.
About T-Mobile US, Inc.
As America’s Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is redefining the way consumers and businesses buy wireless services through leading product and service innovation. Our advanced nationwide 4G LTE network delivers outstanding wireless experiences to 79.7 million customers who are unwilling to compromise on quality and value. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and Metro by T-Mobile. For more information, please visit http://www.t-mobile.com.
Important Additional Information
In connection with the proposed transaction, T-Mobile US, Inc. (“T-Mobile”) has filed a registration statement on Form S-4 (File No. 333-226435), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on October 29, 2018, and which contains a joint consent solicitation statement of T-Mobile and Sprint Corporation (“Sprint”), that also constitutes a prospectus of T-Mobile (the “joint consent solicitation statement/prospectus”), and each party will file other documents regarding the proposed transaction with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE JOINT CONSENT SOLICITATION STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The documents filed by T-Mobile may be obtained free of charge at T-Mobile’s website, at www.t-mobile.com, or at the SEC’s website, at www.sec.gov, or from T-Mobile by requesting them by mail at T-Mobile US, Inc., Investor Relations, 1 Park Avenue, 14th Floor, New York, NY 10016, or by telephone at 212-358-3210. The documents filed by Sprint may be obtained free of charge at Sprint’s website, at www.sprint.com, or at the SEC’s website, at www.sec.gov, or from Sprint by requesting them by mail at Sprint Corporation, Shareholder Relations, 6200 Sprint Parkway, Mailstop KSOPHF0302-3B679, Overland Park, Kansas 66251, or by telephone at 913-794-1091.
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