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T-Mobile launches FMC nationally in USA

***Update: I went to the T-Mobile store this morning and signed up. The service here in Dallas is $10 per month, not $20 as reported by Reuters. The store manager also told me that people with poor cellular reception at home can use the UMA service at no additional monthly charge, but that this usage is treated the same way as cellular usage – in other words, it counts against your cellular minutes.***

***Update 2: Here are some details on the T-Mobile launch campaign. ***

Reuters reported this morning that T-Mobile is rolling out FMC service nationally.

Subscribers would pay an extra fee of up to $19.99 per line or $29.99 for five lines on top of regular monthly cellular bills for unlimited calls in a subscriber’s home or the nearly 8,500 places T-Mobile runs Wi-Fi, like Starbucks coffee shops.

This pricing model seems ambitious, compared to what it is competing with. T-Mobile’s MyFaves 300 plan gives you unlimited minutes nights and weekends and unlimited minutes to a list of five people that you choose. So the 300 minutes are consumed during the day, calling to people whom you call infrequently. For $20 more you can bump this to 1,000 minutes. Alternatively, you can spend that $20 on the FMC service. It seems like the FMC service would only be a better deal for people who are home all day (or at Starbucks), who want to talk a lot to people beyond their five most frequently called. MyFaves 1000 would be a better deal for people who want to talk to a large variety of people during the day when they are not at home, for example in the car or out of range of a Starbucks – like at work, for example.

So who are these people that this “HotSpot@Home” service is aimed at? Surely there can’t be many. Why doesn’t T-Mobile use this technology to gain more customers, by giving it away free to subscribers? This would appeal to all the people who have poor reception at home, who would feel bilked by having to pay extra just for acceptable quality of service there (Hey! They do! See the update above). Another way to increase customer appeal would be to go with a wideband codec for Wi-Fi calls, guaranteeing CD-quality sound to Wi-Fi on-network calls. Or why not do both? This would provide a viral motivation to complement MyFaves, it would be unique among US carriers, it would improve retention, and it would bring new subscribers to start exploiting all that spectrum that T-Mobile picked up in the AWS auction in September 2006.

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