T-Mobile completely overhauled their cell phone plans today, droppping ‘myFaves’ and simplifying to just 3 plans each for individual and family plans.   The highlight is a new low-water price point for contract unlimited voice service — just $59.99 for one line and $99.99 for a two-line family plan.    All plans include unlimited mobile-to-mobile and free nights and weekends.    On a per-line basis, unlimited text messaging is $10.00.  The optional data feature is an additional $10 for regular phones, while the required data plan is $30 for BlackBerry and other smartphone devices.      At the same time, T-Mobile has launched an identical series of no-contract plans that are priced $10 ($20 for some family plans) less than the corresponding contract plan.     As with other no-contract and prepaid plans, you’ll pay significantly more for the phone.    To compare the new contract plans with other carriers’ options, visit our CellCalc rate plan comparison tool.

MyRatePlan Analysis: We’ve been forecasting that by the end of 2010, there will be just two voice plan options –a small bundle or pay-as-you-go for light users, and a flat rate unlimited voice for everyone else, with text and data as add-ons (probably marketed as bundled plans).  T-Mobile has taken a big step in that direction with these changes.     They’ve also addressed a pricing distortion in the marketplace, where contract unlimited service was $100 per month, while prepaid unlimited with services like Boost Mobile and Virgin Mobile is about $50 a month.   T-Mobile is now matching the $50 for no-contract service, and sets a price point for contract service that will force other carriers like AT&T and Verizon to respond.

Digging deeper into the changes, T-Mobile has actually raised some prices as part of these changes.  Data pricing for smartphones has increased $5 per line, while text messaging has been consolidated into a single $10.00/month plan.  Previously, there was a $5.00 plan offering 300 texts.  Since pay-as-you-go messaging remains $0.20 each, this will force more new customers to opt for a more expensive text bundle than they might have otherwise preferred.   The low-end $39.99 rate plan actually has fewer minutes now than before; this will also encourage more new customers to trade up to a more expensive rate plan.

Let MyRatePlan pay your activation fee!    For a limited time, MyRatePlan will rebate $36 for a qualifying single line plan or $72 for a qualifying family plan that is purchased via the site.  Since most carriers charge about $35 per line, this will offset the activation cost for up to two lines.   See rebate form for full terms, conditions and restrictions.

Use our rate plan or phone finder to find the best deal for your needs, and then save an additional $36 or $72 in this exclusive MyRatePlan offer.  Hurry, offer ends May 15.

T-Mobile has launched a number of improvements to its single and family calling plans, including its very popular myFaves plans. Already offering an attractive number of minutes at each price point (vs. its national competitors AT&T, Sprint, and Verizon), these changes further separate it from the pack.

1. Free mobile-to-mobile added on all plans $49.99 and above, including myFaves plans.
2. Introduction of Individual Plus plan which offers 1,000 minutes plus nights and weekends.  This plan sits nicely between the $39.99 1000 minute plan (no nights & weekends) and the $59.99 plan which offers 1,500 minutes with nights and weekends.
3. 500 minutes added to the family plans (myFave and regular) with 2,000 and 3,000 minutes (now 2,500 and 3,500).  For the two myFave family plans, the monthly fee was reduced by $10.
4. Creation of a promotional myFaves family plan — $89.99 for 1,800 minutes, a large improvement over the normal 1,000 minutes offered at this price point.

MyRatePlan Analysis: These are nice improvements for consumers.  T-Mobile was the last holdout on mobile-mobile among the major carriers.  Adding this feature slightly may reduce the value of myFaves for some of its customers, perhaps enough for them to switch over to a regular plan that offers more minutes for the same price.  However, the impact will be somewhat minimized as T-Mobile is only offering the feature on plans of $49.99 and above.

To see and compare all T-Mobile plans vs. those of other carriers, click here.

This Sunday, February 15th, Verizon will launch a new feature on select rate plans called “Friends & Family”. Similar to programs at T-Mobile (MyFaves) and Alltel (My Circle) — now owned by Verizon — customers will be allowed to select a group of numbers to whom they can make and receive calls, without the airtime counting against their monthly allowance. It will be available to both new and existing Verizon customers. Eligible single line plans will be able to choose 5 numbers, while eligible family plans can select 10 numbers.

MyRatePlan Analysis: As is usually the case with new wireless plan benefits, this one is more marketing smoke than actual fire. Few people will actually see their bills reduced. In fact, because the feature is not available on single lines under $59.99 or family plans under $89.99, the real winner will be Verizon — they will see a modest bump in their average customer revenue, an important financial metric in the wireless industry.

The new program should also yield higher profit per customer for Verizon, as the benefit for most customers will be minimal. For example, let’s take a look at a Verizon $59.99 plan. Today, this plan offers 900 anytime minutes, free unlimited nights and weekends and free unlimited mobile-to-mobile calling to the more than 80 million Verizon and Alltel wireless customers. This means there is no benefit whatsoever until a customer on that plan reaches their 900 minute allowance and makes a subsequent call that isn’t already free. Put another way, if you already have a plan with 900 minutes and you aren’t paying overage charges — move along, there’s nothing to see here.

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By the way, some may find the term “Friends & Family” familiar — it was a discount long distance program offered by MCI beginning in the early 90’s. Verizon acquired MCI, and the “Friends & Family” brand name in early 2005.