Rather than slapping customers with additional fees for those who exceed their monthly data quota, the company will reduce wireless speeds to kbps 2G for the remainder of the billing cycle. It's also possible to pay for more data instead of enduring the slower load time. For those with 10GB or more, customers get unlimited talking and texting to Mexico and Canada, as well as free plan usage in Mexico without roaming charges, too. Last month, Verizon VZ also announced a new "Safety mode" plan of paying an upfront overdraft fee after monthly allowances are met.
T-Mobile TMUS , however, doesn't charge overage fees but halts data after monthly quotas are used up. The carrier also gave free data to all of its customers to use on the wildly popular Pokemon Go mobile app. The change comes amid a renewed increase in competition amongst the wireless carriers, led by aggressive plays by T-Mobile and Sprint to lure customers.
Those moves have worked. In the most recent quarter T-Mobile added 1. With those speeds, users can check email or do light browsing on the web, but video watching and other data hungry tasks will be painfully slow. Users happy with any of the existing plans don't need to switch to the new plans, though they won't get the benefit of avoiding charges for exceeding data allowances. Additional higher data plans are available.
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