T-Mobile Takes Another Shot at Rivals with ‘Stash’

The fourth largest wireless carrier in the United States, T-Mobile, will soon launch a new program that allows subscribers to bank unused mobile Internet data for up to one year. Starting Tuesday, customers will receive 10 gigabytes of free data.

If the data is rolled over and unused after one year then customers will lose that amount. In addition, subscribers will be required to first imbibe their free 10 gigabytes before they begin taking on their unused data.

Ostensibly, T-Mobile is turning to a model that was ubiquitous in the early-2000s. During these pioneer days of the mobile phone, companies made a majority of their revenues from voice calls so it offered customers the option to roll over unused minutes.

With smartphone users utilizing the Internet more than speaking to someone, carriers now offer unlimited minutes but charge customers for every gigabyte of data used. John Legere, the company’s chief executive, stated that the mobile phone industry has created a dangerous situation where customers are forced to just guess how much data they have used and how much is left, which can cost a pretty penny on their bills.

T-Mobile

Legere doesn’t think rollover is the term to use because it’s something from the 1980s. Instead, Legere prefers to refer to this program as “stash.”

“What you don’t use, you won’t lose. It’s a scam tactic guessing game,” Legere said in a video broadcast. “What other industry do you have to decide ahead of time how much you need and then you’re penalized either way?”

T-Mobile continues to exploit aspects that customers are normally peeved by. For instance, the wireless carrier removed the fee that consumers usually pay to use their phone overseas. It also pays for new customers’ early termination fees when they decide to join T-Mobile.

This comes as the company announced Tuesday that it will cover 300 million people with LTE next year. As CNet writes, wireless supremacy hinges on the reputation of maintaining strong coverage, something that T-Mobile has greatly expanded upon in the past year or two.