By Thomas Gryta
MetroPCS Communications Inc. (PCS) will launch a new wireless
plan this week to provide unlimited data on its next-generation
network, as the carrier aims to keep up with larger players in the
competitive smartphone environment.
The Dallas-based, pay-as-you-go carrier made a bet four years
ago to upgrade its network using fourth-generation LTE technology
and is pushing customers to use the more efficient system. Part of
that strategy will include offering higher-profile devices to
customers, but the company is cautious to make the costly and risky
commitment to get Apple Inc.'s (AAPL) popular iPhone.
MetroPCS will offer unlimited talk, text and data on its
fourth-generation LTE network for $55 a month starting Thursday,
under a promotional offer that could last three to six months,
Chief Operating Officer Thomas Keys said in an interview. The
no-contract plan is branded "LTE for All."
When the promotion ends, the price goes up to $70 a month, its
current price for unlimited data, Mr. Keys said.
In comparison, basic wireless plans for smartphones operating on
LTE networks from rivals start around $70 but frequently cost more
than that and can include restrictions on either voice or data
usage.
The company also is launching a new LTE smartphone, the LG
Motion 4G, adding to its portfolio of devices that work on the
network. It plans to launch several more by year-end.
MetroPCS will offer the popular Samsung Galaxy S III on its
network, although Mr. Keys wouldn't give an expected launch date.
The company is currently testing the phone, he said.
While the next generation iPhone is expected to use LTE
technology, Mr. Keys expressed caution about bringing such a device
to the MetroPCS network because of the purchase commitments that
Apple often demands of carriers. Rival Leap Wireless International
Inc. (LEAP) struck a three-year deal with Apple to spend $900
million on iPhone volume purchases.
"I don't want to cut off my nose to spite my face," Mr. Keys
said of carrying the iPhone. While he would like to offer the
device, he worries that having to push the iPhone would damage
long-term relationships with other phone manufacturers. He declined
to comment on any talks with Apple.
Although the Galaxy S III has a similar price point to the
iPhone, it doesn't have the purchase commitment. He estimates that
only 2% or so of MetroPCS users would be interested in such a
high-end phone, equating it to a "Cadillac in the showroom."
Wireless carriers subsidize smartphones by hundreds of dollars
for customers that sign a two-year contract and charge higher
monthly prices, while prepaid plans generally have a lower monthly
bill but require a much higher upfront payment for the phone.
MetroPCS operates in 17 markets with a network that covers about
104 million people, Mr. Keys said. Its LTE network is rolled out on
97% of its cell sites. It first launched the network in late
2010.
All the major U.S. carriers are rolling out LTE networks, with
Verizon Wireless in the lead, followed by AT&T Inc. (T), Sprint
Nextel Corp. (S) and Deutsche Telekom's (DTE.XE, DTEGY) T-Mobile.
Verizon Wireless is a joint venture of Verizon Communications Inc.
(VZ) and Vodafone Group PLC (VOD, VOD.LN).
Write to Thomas Gryta at thomas.gryta@dowjones.com
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