• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
TechThe Mobile Executive

Here’s How Sprint and T-Mobile Are Battling With New Unlimited Data Plans

By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
August 18, 2016, 2:18 PM ET
T-Mobile USA Boosts Customers as Takeover by AT&T Drags On
People pass by T-Mobile USA Inc. and Sprint Nextel Corp. stores in New York, U.S., on Tuesday, Nov. 15, 2011. T-Mobile USA, the fourth-largest U.S. wireless company, added customers for the first time in a year and reported profit last week that beat estimates as its German owner fights to complete the proposed sale of the unit to AT&T Inc. Photographer: Stephen Yang/Bloomberg via Getty ImagesPhotograph by Bloomberg via Getty Images

Just moments after T-Mobile unveiled a new wireless plan with unlimited data usage on Thursday, rival Sprint announced its similar offering at a lower price.

The new Sprint plan, which includes unlimited voice, texting and data usage, will cost $60 for one line, $100 for two, and $130 for three. T-Mobile’s new unlimited plan starts at $70 for one line, $120 for two, and $140 for three.

The new plans come as growth is slowing in the U.S. wireless market, which already provides more phone lines than there are people in the country. With customers switching brands at record low rates, the carriers are looking for new promotions to attract switchers.

Sprint, along with market leaders AT&T and Verizon Communications, all reported shrinking wireless revenue for the second quarter. T-Mobile’s revenue grew, but its subscriber gains have been slowing compared to the past few years.

With the pressure on, all four carriers have revamped their pricing over the past month. Verizon announced increased prices in July, but also gave customers larger data allowances. Earlier this week, AT&T increased prices on its cheapest plans, cut prices on top-of-the-line plans and increased data allowances for all.

Get Data Sheet, Fortune’s technology newsletter.

Then on Thursday, T-Mobile and Sprint slashed prices from their prior unlimited data plans. But both also included a variety of limitations in the fine print of the new plans to cushion the blow to their networks.

Unlimited customers who use more than 26 GB per line on T-Mobile or 23 GB on Sprint could have their service slowed. Both carriers will limit the quality of video streaming to DVD equivalent quality on the new plans. Sprint will also limit bandwidth for streaming music and online game play. Finally, T-Mobile will dramatically slow any data used for tethering another device, such as a laptop, to pre-broadband levels, while Sprint will do the same only after providing five gigabytes of high-speed tethering in a month.

T-Mobile’s prior unlimited plan, which had fewer restrictions, started at $95 for one line. Sprint’s prior unlimited plan, also with fewer restrictions, started at $100.

Both carriers defended the trade-offs. T-Mobile, which is majority owned by German carrier Deutsche Telekom, said in the past when it offered a choice to let customers turn off the lower-resolution video while using more of their data allowances, 99% opted to stick with the lower quality. Sprint said 90% of customers did not notice a difference in media quality when it tested the limitations earlier this year.

Despite the similarities, there was one huge difference between the two carriers new plans, reflecting a major strategic split. T-Mobile said it would phase out all its limited data plans for new customers starting next month when the new unlimited plans are available. Sprint said it would keep its other offerings.

The T-Mobile strategy aims to attract more customers craving simplicity. The new unlimited plans are a better deal for people who use lots of data or have multiple family members on their account. But by raising the lowest price plan to $70, T-Mobile risks scaring off potential new customers with lower data needs or less money.

“A lot of people dab promotionally into these kind of offers,” T-Mobile CEO John Legere said on a call with analysts and reporters. “For T-Mobile, this is it.”

Company executives said that the vast majority of new customers were already signing up for plans costing about $70 or more and those who wanted cheaper plans could opt for one on the carrier’s prepaid MetroPCS brand. By targeting the higher end of the market, particularly family plan customers, the strategy is consistent with AT&T and Verizon’s recent changes.

Sprint, which is majority owned by Japanese carrier Softbank, said it would continue to offer more choices, and added an even cheaper version of the new unlimited plan to its Boost Mobile prepaid brand starting at $50 per month.

Among the two market leaders, AT&T currently offers an unlimited plan only to subscribers of its DirecTV satellite service, while Verizon has no unlimited offering. But analysts said the two larger carriers could start to feel pressure to better match the new unlimited deals.

“T-Mobile and Sprint have already been taking share from Verizon and AT&T at an unprecedented rate,” says longtime telecom analyst Craig Moffett of MoffettNathanson. “This will only accelerate that. And it will put tremendous pressure on Verizon and AT&T to follow suit.”

To learn about an earlier Sprint Twitter spat, watch:

After Thursday’s dueling announcements, Sprint CEO Marcelo Claure got into a name calling spat on Twitter with T-Mobile CEO John Legere. Claure called the new T-mobile plan “crappy” and accused Legere of being a “con artist.” Legere said Sprint was copying T-Mobile’s strategy.

Investors didn’t show the same degree of passion about the new plans. Shares of Sprint (S) and T-Mobile (TMUS) gained less than 1% each in afternoon trading on Thursday, while shares of AT&T (T) and Verizon (VZ) were each off about 1%.

About the Author
By Aaron Pressman
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Man in a white shirt and jacket.
InnovationBrainstorm Tech
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
2 hours ago
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, June 3, 2026
InvestingWall Street
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
5 hours ago
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
AIBrainstorm Tech
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
By Sharon GoldmanJune 9, 2026
5 hours ago
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
EnergyAutos
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
By Nick LichtenbergJune 9, 2026
6 hours ago
Tesla cofounder: ‘We should be really worried’ about the U.S. grid as China speeds ahead in the power race
EnergyBrainstorm Tech
Tesla cofounder: ‘We should be really worried’ about the U.S. grid as China speeds ahead in the power race
By Jordan BlumJune 9, 2026
6 hours ago
The AI industry spent years chasing bigger models. Now it’s chasing efficiency
AIBrainstorm Tech
The AI industry spent years chasing bigger models. Now it’s chasing efficiency
By Sharon GoldmanJune 9, 2026
7 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
1 day ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
10 hours ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
1 day ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
2 days ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
1 day ago
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
Success
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
By Preston ForeJune 7, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.