T-Mobile Making Big Shifts in Prepaid Strategy and Forecasting 5G/LTE Expansion

The T-MO Report recently released information regarding a change in prepaid strategy for T-Mobile, “A recent email sent to employees seems to suggest that their ‘Metro by T-Mobile’ prepaid services will soon be sold directly in T-Mobile corporate and third-party stores. ‘For Prepaid, we have an enormous opportunity in front of us” the email states. “While we’ve been historically very successful in the nation’s most urban and densely populated segments throughout the history of T-Mobile, we have more to do especially in rural America.’

It goes on to say that ‘You will see us launch our Metro by T-Mobile premium prepaid products in our T-Mobile branded COR and TPR stores in rural America, and see us expand distribution of prepaid products in new and innovative ways as well. This includes our traditional voice and new non-voice products too!'”

This news comes as GlobeNewswire released a report about T-Mobile suggesting that “There is a strong reason to believe that the combined company will make more significant changes post-merger including rationalization of pricing, feature functionality, and ultimately brand consolidation.”

They go on to speculate that “T-Mobile subsidiaries will likely evolve to a purely T-Mobile. Along the way, these subsidiaries are expected to receive better feature functionality, support, and differentiation as a Mobile Network Operator(MNO) owned brand.”

This shift by T-Mobile is definitely not the last change we’ll see in 2021/2022. We expect to see a lot of shake-ups by the Network Operators (Verizon, AT&T, and T-Mobile) in the prepaid space. We already see Verizon making similar investments and changes to their approach to prepaid.