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« Broadcom Updates Draft 802.11g Firmware | Main | Filleting the Herring »

February 27, 2003

T-Mobile Brings Pricing In Line

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T-Mobile bows to daily pricing, lower monthly fee: The timing is sensible. They now have a true national footprint, although substantively in Starbucks until closer to summer, and they should be focusing on increasing use of infrastructure even if it involves price reductions. I'm totally surprised and fascinated that they will offer a $6 daylong usage deal; it might encourage the kind of cybersquatting Starbucks was trying to discourage.

The article states that unlimited network access is currently $40, but the rate plan page (not updated yet) is in sync with my memory: $50 per month for unlimited national; $30 per month for unlimited regional. I'm speculating that they're cutting the national rate down to the regional rate, but I'll wait for clarification.

At $30 or $40 per month for unlimited national access, we're starting to see a rate that's casual-traveler friendly instead of road warrior oriented; when T-Mobile adds its airport executive lounges and Borders, it starts to become highly worthwhile. In fact, I cashed in some of what I hope will continue to be valuable frequent flyer miles to join United's Red Carpet Club in anticipation of the T-Mobile service. Don't let me down, bankrupt carrier of mine.

This new price is in line with Boingo's reduction a few months ago of their unlimited session rate to $50 per month. (Both require service commitments of a year, of course.)

T-Mobile continues the MobileStar policy of including only 500 Mb of access per month and charging 25 cents per additional Mb. 100 Mb = $25. Pretty steep. None of the other wISPs are bothering to track this, as far as I can determine. Also, if you use their prepaid minutes plan, there's no limit.

Of course, this will probably change with their new dayrate -- does that include unlimited downloads, too? I have $40-odd in a T-Mobile account, will be it be converted to day pass credit? Refunded?

I'm going to put on my Sky Dayton hat here and ask another question: With the quotes in the article at News.com that broke this news from the eyeforwireless conference, it's clear they need to increase the revenue load on their infrastructure. You don't have to read between the lines. Why don't they establish a standard and open to roaming? I believe their day-rate pricing is the first step towards roaming because it puts them on the same page as aggregators and competitors. Load the infrastructure, and profit might be obtainable. Stay isolated, and subsidize Starbucks intranet.

The Hotels Have Landed

Marriott pushes further: Marriott hotels, including the brands Marriott, Renaissance, Courtyard, Residence Inn, TownePlace Suites, Fairfield Inn and SpringHill Suites, have 200 properties set up with Wi-Fi--although the extent isn't mentioned in any article (rooms, meeting spaces, public areas?). They plan to unwire 200 more with Intel's help on co-marketing. Marriott charges a bizarre $2.95 for 15 minutes and 25 cents per minute thereafter according to several stories, but they must have a day rate as well.

Alongside Marriott, you have the long-established Wayport relationship with a number of property companies owning major brands (Westin, Four Seasons, Embassy, Summerfield, Wyndham, etc.) with wired and wireless combinations, Omni Hotel's recent announcement for free access in its 30 properties, and Starwood (Sheraton, Westin, and W).

In practical terms, some kind of broadband should be available in most premium hotels in the near future. In each room, it's likely that wireline Ethernet will still predominate, however, until Vivato's model proves itself. Less premium hotels could certainly poach customers and distinguish themselves by offering free or $2 per day unlimited Wi-Fi access.