T-Mobile’s recent introduction of new Metro by T-Mobile prepaid bundle deals signifies a strategic expansion into a more diverse prepaid market. By offering phone and smartwatch bundles, T-Mobile is pioneering a shift in the US carrier-owned prepaid segment, targeting a customer base that is not strictly budget-constrained.

The prepaid market in the US is undergoing a transformation as carriers such as T-Mobile start to recognise the potential to serve a broader customer base. Metro by T-Mobile is at the forefront of this change, being the first major US carrier-owned prepaid brand to offer phone and smartwatch bundles. This move sees T-Mobile actively blurring the line between prepaid and postpaid. With these connected device and phone bundles, the carrier expands its target area into multi-line, multi-device accounts while poaching them from competitors. Customers who switch from another carrier can get a free Apple iPhone 12 and $99 Apple Watch SE bundle – saving approximately $800, or a free Samsung Galaxy A35 and $149 Galaxy Watch FE at a savings of $400. These deals do not require financing or contracts but do lock customers into the Metro Flex Plus plan for at least six months after purchase.

Meanwhile, the Metro Flex Plus service plan offers benefits that are traditionally found in postpaid such as 25GB of hotspot usage, an Amazon Prime subscription, and access to T-Mobile’s Scam Shield and T-Life app for $70 per month after the autopay discount and $35 per additional line. Aiming to increase retention, the carrier also promises an annual upgrade discount for Metro Flex Plus customers and increases that discount if customers wait to upgrade their device until year two or three. The addition of the smartwatch component and Metro Flex Plus plan requirement targets high-value customers, potentially increasing ARPU overall. This strategy is indicative of T-Mobile’s recognition that the prepaid market is not homogenous and that there is a segment willing to pay more for added value.

In the US prepaid market, device offers beyond smartphones are a new concept, and Metro by T-Mobile is setting a precedent by including smartwatches in its inventory, a move not yet matched by other prepaid providers such as Total Wireless or Simple Mobile. As the lines continue to blur between prepaid and postpaid, it is evident that premium customers are exploring new options and looking for the same connected device options that they are used to seeing in postpaid. Carriers who don’t meet this need will miss the mark on a premium customer base. T-Mobile’s recent efforts with the Metro brand underscore this blurring trend. While some customers are seeking ways to reduce their monthly service expenses, others are looking for the best device price and want to avoid long postpaid carrier financing terms, which range from 24 to 36 months. Metro’s newly launched bundles are strategically positioned to address specific customer pain points.

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