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Updated T-Mobile US has unveiled a new initiative aimed at changing the mobile landscape: free calling from the United States to both Mexico and Canada.
Branded “Mobile Without Borders,” the announcement accompanies T-Mobile’s report of 2.1 million net customer additions in the second quarter of 2015, marking the ninth consecutive quarter with more than one million new customers.
While other carriers have offered similar options—AT&T introduced unlimited calling to Mexico earlier this year—T-Mobile’s inclusion of Canada represents a notable expansion of the concept.
T-Mobile CEO John Legere, known for his outspoken style, criticized competitors for moving too slowly. In a video blog he addressed customers directly: “There are a ton of customers out there living with this pain, and I bet you had no idea. Wherever you call, whenever you travel in North America, you get the same great Un-carrier experience.”
The carrier describes these changes as “Un-carrier Amped,” positioning them as an upgrade to prior Un-carrier moves such as the “Simple Choice” plan and Un-carrier 3.0, which targeted bill shock from international roaming charges.
T-Mobile cites data showing that 35% of all international calls from the U.S. are to Mexico and Canada, and that 70% of international trips by small and medium-sized business travelers are to those two countries. Last year, U.S. customers placed approximately 25 billion long-distance minutes to Mexico and Canada, which previously generated about $7.5 billion in pay-per-use charges. To support the Mobile Without Borders plan, T-Mobile has partnered with major carriers in Mexico and Canada that operate strong LTE networks.
Lynnette Luna, principal analyst at Current Analysis, said the offering benefits both sides. “International roaming and calling has been a significant revenue generator for all carriers, but T-Mobile is ushering in a new paradigm,” she said. “T-Mobile has negotiated some extremely competitive reciprocal roaming rates for both voice and data with the top two carriers in both Canada and Mexico. We will see Canadian and Mexican carriers now develop reciprocal offers with roaming on T-Mobile’s network.”
Following the addition of 2.1 million customers in Q2 2015, T-Mobile’s total customer base reached 58.9 million. In the race for third place in the U.S. wireless market, T-Mobile’s recent performance outpaced Sprint’s reported first-quarter 2015 subscriber count of 57.1 million. The rivalry has grown heated: Sprint CEO Marcelo Claure publicly dismissed the Un-carrier movement after Legere’s remarks, calling it “bullshit” in response to a tweet.
Whether T-Mobile or Sprint ultimately secures the third spot will depend on upcoming financial disclosures—T-Mobile indicated it expects to release full financial results for Q2 by July 30—but the carrier’s momentum appears steady. That growth is notable considering the company initially lost about 2.1 million customers overall when Legere became CEO in 2012.