T-Mobile Takes on Tracfone, Boost, Virgin With GoSmart Brand

By Arselia Gales Comments

In an effort to move some of its business into the prepaid market, T-Mobile has launched GoSmart Mobile.

The company has been testing its new prepaid offering in nine markets since December. GoSmart Mobile launched on Feb. 19 with three tiers of services. T-Mobile says it has signed up tens of thousands of customers for the service since it began testing.

For $30 per month, customers can get unlimited voice minutes and texting, and for $5 more they get mobile Internet access. For $45 per month, customers can upgrade to a faster network.

"With T-Mobile moving its own core brand ever deeper into prepaid and so-called value-based pricing, it makes sense for it to launch a separate brand to attack the very lowest end of the prepaid market," noted Yankee Group senior analyst Rich Karpinski, commenting speficially on a Reuters article. "T-Mobile wants to be known as the ‘uncarrier’ and ‘value’ operator, but it doesn’t want its core brand to go too downmarket. That’s what the new GoSmart is for, competing with the lowest-cost end of the market with rivals like Tracfone’s StraightTalk, Sprint’s prepaid Virgin Mobile and Boost and others. It’s a strategy that also complements its pending MetroPCS acquisition very well."

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