The war is on! T-Mobile Puerto Rico recently launched its new business model, which unleashes current customers from their contracts and offer no annual service commitments. In addition, customers can choose their favorites phones with $0 down payment, if qualify, with service plans starting at $40 a month. In addition, customers may also add lines for only $10 to family plans, with or without credit check. If a comparison among service plans prices between T-Mobile Puerto Rico and T-Mobile USA is made, it is noticeable that Puerto Rico’s offers are more aggressive. Puerto Rico’s wireless service market is a very competitive one.
The new offering by T-Mobile Puerto Rico responds to the growth and demand for no-contract wireless service in the island. This concurs with the Wireless Service Subscribers Report 2002-2013, published on February 4, 2014 by the Telecommunications Regulatory Board of Puerto Rico (JRTPR, for its acronym in Spanish), which shows an increase each year in the customer base with no-contract wireless service. In the last 5 years, the number of customers with no-contract wireless service increased by 444,099.
T-Mobile Puerto Rico’s strategy relies on what customers do not like about wireless carriers, explained Jorge Martel – General Manager of T-Mobile Puerto Rico. He also explained that T-Mobile Puerto Rico spent a long time doing market research about the main complaints that AT&T Puerto Rico’s customers were having, which main complaint are its inflexible contracts.
Also, T-Mobile Puerto Rico’s market research identified that Claro’s customer complaints were centered in the excessive penalties charges.
It is more than clear that T-Mobile Puerto Rico’s new business model is a strategy to target, capture and reduce the market share of the biggest wireless carriers in the island. In 2012, AT&T had a 31% market share, while Claro captured a 32% and T-Mobile Puerto Rico a 17%, respectively.