T-Mobile US Inc Makes a Decidedly Un-Uncarrier Move

By Evan Niu, CFA and Erin Kennedy – Apr 1, 2014 at 9:00PM

NASDAQ: TMUS

T-Mobile US

Market Cap

$195B

Today's Change

(-0.08%) -$0.13

Current Price

$164.05

Price as of April 25, 2024, 4:00 p.m. ET

T-Mobile gets rid of employer corporate discounts, effectively jacking up prices on many customers. That's in stark contrast to the aggressive price cutting that the company has been implementing elsewhere.

Recently, T-Mobile (TMUS -0.08%) has been shaking things up in the domestic wireless industry with its "Uncarrier" strategies. However, the company's latest move seems somewhat removed from this philosophy, and has caused some backlash among consumers. While T-Mobile has made pricing transparency a priority, CEO John Legere just announced that the company is getting rid of its corporate employer rate plan discounts. While this could make prices more transparent, it could also cause them to go up significantly for a large number of T-Mobile users.

In this segment from Tuesday's Tech Teardown, host Erin Kennedy and Motley Fool tech and telecom bureau chief Evan Niu take a look at T-Mobile's latest strategy, and why the $25 gift card it is now offering to customers who buy a new device could feel more like a consolation prize than compensation for customers who could easily see their service increase by $100-$150 or more annually.

Erin Kennedy has no position in any stocks mentioned. Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.