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T-Mobile's value strategy pays dividends

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Thu, 03/04/2014 - 00:07
Ted Marzilli

The relentless marketing battle between wireless carriers has recently pushed T-Mobile and Verizon Wireless into a virtual tie on value perception.

Verizon Wireless’ “More Everything” plans launched February 13th with a blitz, touting more data for some customers, free international messaging and some free cloud storage. It would seem that their new plan and its campaign are not effective enough to blunt T-Mobile’s aggressive no-contract unlimited data promotions.

T-Mobile’s value perception with consumers has been steadily rising since the beginning of the year. Their ‘Uncarrier’ strategy has seen them unbundle services, eliminate service contracts and phone subsidies and offer free international data roaming.

Value perception of AT&T had been increasing modestly since the beginning of the year. The company’s has recently been attempting to poach current and potential T-Mobile customers with money offers to switch carriers. That proved effective at raising its value perception through early March, but that campaign seems to have run out of steam, and its levels have returned to pre-promotion numbers.

AT&T, Sprint, T-Mobile and Verizon Wireless were measured with YouGov BrandIndex’s Value score, which asks respondents, “Does it give good value for what you pay?" All respondents were adults age 18 and over.

YouGov BrandIndex’s Value scores range from 100 to -100 and are compiled by subtracting negative feedback from positive. A zero score means equal positive and negative feedback.

Also since the beginning of the year, smartphone users planning to switch mobile carriers in the next six months are increasingly naming T-Mobile, and to a lesser extent, AT&T, as their most likely choice for a new carrier according to YouGov’s CategoryView data. During that same period, Verizon Wireless and Sprint have lost ground among those planning to move carriers.

Value: AT&T, Sprint, T-Mobile, Verizon
Value: AT&T, Sprint, T-Mobile, Verizon
Most likely Carrier to Choose Among Smartphone Owners Planning to Switch Carriers in Next Six Months
Most likely Carrier to Choose Among Smarthphone Owners Planning to Switch Carrie
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