T-Mobile One may breach net neutrality rules (TMUS)

This story was delivered to BI Intelligence Apps and Platforms Briefing subscribers. To learn more and subscribe, please click here.

T-Mobile’s newest unlimited talk, text, and data plan, T-Mobile One, could potentially breach US net neutrality rules, according to the BBC.

The plan is priced at $70 per month, but users can stream only standard definition videos. Sprint has also announced a similar unlimited plan with reduced streaming quality. However, it’s T-Mobile’s upgrade option that has caught the attention of policy makers. For an additional $25 per month, users can upgrade to high definition video streaming, which could breach net neutrality rules that prohibit broadband providers from blocking or speeding up connections for a fee.

This isn’t the first time that T-Mobile has been accused of violating net neutrality rules. T-Mobile was in the spotlight in January for its Binge On plan. The main feature, which allowed for unlimited low-resolution video content with partnered firms, questioned whether giving data away through zero-ratings programs violated net neutrality rules.

Although T-Mobile is yet to be found guilty, these events highlight the continued efforts by firms to provide competitive data plans while remaining within the confines of the net neutrality rules.

This situation could help tip the scales in the wireless industry, which is currently is in a state of flux. AT&T and Verizon have dominated the carrier market over the past seven years while T-Mobile and Sprint have struggled to gain subscribers. Then in 2013, T-Mobile tweaked its strategy to turn around its business.

This move, along with slowing smartphone adoption and other forces in the mobile industry, killed the two-year contract and initiated an ongoing price war between carriers. The movement away from the contract model is not only changing the way carriers operate, it’s affecting the myriad of industries that rely on carriers’ services.

BI Intelligence, Business Insider's premium research service, has compiled a detailed report on wireless carriers that examines how the wireless industry has fundamentally changed since carriers began aggressively responding to the launch of T-Mobile’s “Un-Carrier” movement. It also looks at the factors underpinning changes in the broader wireless industry and the challenges carriers face in 2016 and beyond, including the upcoming spectrum auction and the deployment of new wireless technologies.

Here are some key takeaways from the report:

Consumers are actually becoming more loyal to their current wireless operator even as competition between the carriers intensifies.
The wireless carriers are not only battling over device financing, they’re also trying to woo consumers through attractive data packages.
Intensified competition between carriers has lengthened the smartphone replacement cycle, posing a challenge for mobile software developers and handset makers.
With phone subscriber growth stagnating, carriers will look to alternative sources of revenue, including connected cars, tablets, and IoT devices, to drive growth.
The upcoming spectrum auction, the latest ruling on net neutrality, and new technology, will change the face of the broader wireless industry in next few years.

In full, the report:

Examines the impact of T-Mobile’s Un-Carrier movement on the wireless industry.
Forecasts how the death of the two-year contract will impact the broader mobile industry.
Identifies how carriers are helping facilitate the growth of mobile video consumption.
Explains the changing nature of subscriptions and the growing importance of connected devices.
Discusses what changes and challenges the wireless industry will face over the next five years.

To get your copy of this invaluable guide, choose one of these options:

Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the wireless carrier war.

Join the conversation about this story »