T-Mobile Cancels Unlimited Data Plan

T-Mobile cancelled its proposed $60 unlimited talk and data plan, highlighting the difficulties around offering such a good deals on smartphone contracts.

The “Even More Plus” plan, leaked but not officially announced yesterday, would have offered customers unlimited talk, text, and 2-gigabytes of data for $60 per month. But the Bellevue, Wash.-based carrier notified employees today that the plan will not be offered.

Customers can still sign up for the “Even More” unlimited plan, which costs $60 for calls and texts plus $20 for monthly data.

While the $60 plan would have been budget-friendly, the plan would also have capped users’ data at 2-gigabytes, subjecting them to undefined but reduced speeds after hitting this limit. T-Mobile says its average customer only uses 1-gigabyte of data per month; AT&T also caps its unlimited data plans, citing the same reason.

If the proposed merger between AT&T and T-Mobile is approved, it seems customers may either have to choose tiered-pricing data plans that offer more data or put up with slower speeds once they reach the 2-gigabyte limit.

Since AT&T won’t likely adopt T-Mobile’s lower pricing, affordable plans like the “Even More Plus” may disappear if AT&T buys T-Mobile.

Also, a looming “spectrum crunch” may discourage carriers already facing congested networks from discounting data plans, which would encourage heavier use. The Federal Communications Commission is moving to address the spectrum shortage, but the lengthy process is unlikely to be completed soon.

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