T-Mobile Lowers 5G Cost Barriers with ‘Partner Plus’ Channel Subsidy Program

Rhea-AI Summary

T-Mobile (NASDAQ: TMUS) has launched Partner Plus, a new channel subsidy program aimed at reducing the initial cost of 5G laptops and enterprise-grade 5G Fixed Wireless Access (FWA) equipment from Cradlepoint. The program offers:

• Up to $400 subsidy credit and business savings per 5G laptop
• Up to $700 subsidy credit on eligible certified 5G Cradlepoint routers and adapters
• Additional savings of up to $900 from Cradlepoint on NetCloud Manager

T-Mobile has partnered with Ingram Micro, TD SYNNEX, and Cradlepoint to make 5G technology more accessible to businesses. The initiative aims to overcome cost barriers and accelerate the adoption of 5G solutions, offering enhanced security, improved productivity, and operational efficiencies.

Positive

• Launch of Partner Plus program to reduce initial costs of 5G equipment for businesses
• Partnerships with major distributors Ingram Micro and TD SYNNEX to expand reach
• Potential for businesses to save up to $1600 per router or adapter
• Offering enhanced security options with T-Mobile Secure Access Service Edge

Negative

• None.

Insights

Technology Analyst

T-Mobile's Partner Plus program is a strategic move to accelerate 5G adoption among businesses. By offering substantial subsidies of up to $400 for 5G laptops and $700 for Cradlepoint routers, T-Mobile is effectively lowering the entry barrier for 5G technology. This approach could significantly boost T-Mobile's enterprise customer base and 5G network utilization.

The partnership with major distributors Ingram Micro and TD SYNNEX is crucial, as it leverages existing supply chains to reach a wider business audience. The inclusion of Cradlepoint's enterprise-grade FWA equipment adds credibility to T-Mobile's 5G Business Internet offering, potentially challenging traditional ISPs in the business sector.

However, the long-term success of this program will depend on the actual performance and reliability of T-Mobile's 5G network, especially in comparison to fiber-based solutions. If successful, this initiative could position T-Mobile as a formidable player in the enterprise connectivity market.

Financial Analyst

T-Mobile's Partner Plus program is a calculated investment in future revenue streams. By subsidizing 5G hardware, T-Mobile is essentially trading short-term costs for long-term gains. The program's structure, requiring a 3-year agreement, ensures a steady revenue flow and could significantly increase Average Revenue Per User (ARPU) in the business segment.

The potential $1600 savings per router or adapter is substantial and could attract price-sensitive businesses. However, investors should monitor the program's uptake and its impact on T-Mobile's operating margins in the coming quarters. If successful, this strategy could lead to increased market share in the lucrative enterprise segment, potentially driving stock appreciation.

The collaboration with established distributors and Cradlepoint also mitigates inventory risks and enhances T-Mobile's credibility in the enterprise market. Overall, this move aligns with T-Mobile's aggressive growth strategy in the 5G era.

The Un-carrier teams up with channel partners Ingram Micro and TD SYNNEX to make it more affordable for businesses to experience the benefits of 5G laptops and 5G Business Internet

BELLEVUE, Wash.--(BUSINESS WIRE)-- T-Mobile US, Inc. (NASDAQ: TMUS):

The Un-carrier teams up with channel partners Ingram Micro and TD SYNNEX to make it more affordable for businesses to experience the benefits of 5G laptops and 5G Business Internet (Photo: Business Wire)

What’s the news: T-Mobile is introducing Partner Plus, a new channel subsidy program that can make it more cost effective for businesses to experience the benefits of 5G laptops and 5G Business Internet.

Why it matters: The potential performance and increased security advantages of 5G are well-established, but the upfront hardware costs can be a significant barrier to entry for many businesses.

Who it’s for: Channel partners, original equipment manufacturers and the businesses they serve.

T-Mobile is helping to make it more cost effective for businesses to make the move to 5G. Today, T-Mobile (NASDAQ: TMUS) announced the launch of Partner Plus, a new channel subsidy program designed to reduce the initial cost of 5G laptops and enterprise-grade 5G Fixed Wireless Access (FWA) equipment from Cradlepoint, part of Ericsson.

T-Mobile certified 5G laptops offer performance with the convenience of always-on connectivity, powered by the largest, fastest and most consistent 5G network in America. This combination delivers blazing speeds, broader and more reliable coverage, as well as enhanced privacy and security compared to public Wi-Fi. T-Mobile 5G Business Internet provides a reliable, business-grade FWA solution you expect plus greater geographical flexibility and faster and simpler deployment. But despite the potential performance and increased security advantages of 5G, some businesses have been hesitant to invest in the technology due to the higher initial hardware costs.

"The price tag of 5G devices, particularly laptops, has been a major obstacle for businesses looking to adopt 5G solutions,” said Patrick Moorhead, Founder, CEO and Chief Analyst at Moor Insights and Strategy. “However, with the strength and leadership of T-Mobile’s 5G network, coupled with their expanding business initiatives, T-Mobile is uniquely positioned to bring the right partners together to deliver new solutions and plans that make 5G more affordable for businesses.”

To help businesses overcome these cost barriers, T-Mobile has teamed up with major global technology distributors Ingram Micro and TD SYNNEX, and leading 5G enterprise wireless WAN solution provider Cradlepoint. This collaboration enables the immediate and convenient procurement of powerful 5G capabilities, through 5G laptops and 5G FWA solutions, at attractive price points.

Enter T-Mobile Partner Plus

For 5G laptops:

• T-Mobile provides a subsidy credit of up to $400 and subsequent business savings per laptop, for many popular network certified 5G laptop brands.
• Businesses can get enhanced security with the option to add T-Mobile Secure Access Service Edge, the first SIM-based SASE solution that uses International Mobile Subscriber Identity and International Mobile Equipment Identity for clientless authentication.

For T-Mobile Business Internet:

• T-Mobile provides a subsidy credit of up to $700 on eligible certified 5G Cradlepoint routers and adapters.
• Cradlepoint provides up to two additional years of NetCloud Manager at no cost with the purchase of an eligible 5G Cradlepoint router or adapter (up to $900 value).
• Businesses could see up to $1600 in savings per router or adapter.

“5G is delivering enhanced security, improved productivity, operational efficiencies and lower total cost of ownership,” said George Fischer, SVP of Sales, T-Mobile Business Group. “Our mission is to enable businesses to accelerate the realization of the many benefits of 5G. We are bringing together industry-leading partners to provide added value and make the advantages of 5G more accessible to all organizations.”

For more information about T-Mobile Partner Plus, including pricing, plans and eligible devices, please visit: www.experience.t-mobile.com/partnerplus

To learn more about how to become a part of the Partner Plus ecosystem, go to: www.t-mobile.com/business/partner

See 5G device, coverage, & access details at T-Mobile.com. Fastest/Most Consistent based on analysis by Ookla® of Speedtest Intelligence® data median, overall combined speeds & download speeds for Q1 2024. Ookla trademarks used under license and reprinted with permission. Delivered via cellular network; speeds vary due to factors affecting cellular networks. Device Subsidy: Limited-time offer; subject to change. Tax on pre-credit price due at sale. Qualifying credit, business account, new line of service & 3-year agreement required. $25 SIM kit may be required. If you have cancelled lines in past 90 days, you may need to reactivate them first. Up to $400 laptop subsidy/$700 Cradlepoint subsidy. May not be combinable with some offers or discounts.

About T-Mobile

T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Sprint. For more information please visit: https://www.t-mobile.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240805919796/en/

Media Contacts

T-Mobile US, Inc. Media Relations

MediaRelations@t-mobile.com



Investor Relations Contact

T-Mobile US, Inc.

investor.relations@t-mobile.com

https://investor.t-mobile.com

Source: T-Mobile US, Inc.

FAQ

What is T-Mobile's Partner Plus program for 5G adoption?

T-Mobile's Partner Plus is a channel subsidy program designed to make 5G laptops and enterprise-grade 5G Fixed Wireless Access equipment more affordable for businesses, offering up to $400 in subsidies for laptops and $700 for Cradlepoint routers and adapters.

How much can businesses save with T-Mobile's Partner Plus program (TMUS)?

Businesses can save up to $400 per 5G laptop and up to $1600 per router or adapter through T-Mobile's Partner Plus program, which includes subsidies from T-Mobile and additional savings from Cradlepoint.

Who are T-Mobile's partners in the Partner Plus program for 5G adoption?

T-Mobile has partnered with global technology distributors Ingram Micro and TD SYNNEX, as well as 5G enterprise wireless WAN solution provider Cradlepoint, to implement the Partner Plus program.

What additional security features does T-Mobile offer with its 5G laptops?

T-Mobile offers the option to add T-Mobile Secure Access Service Edge, the first SIM-based SASE solution that uses International Mobile Subscriber Identity and International Mobile Equipment Identity for clientless authentication.