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T-Mobile to Allow Hotspot on All Prepaid Plans With Data

According to TmoNews.com, effective Friday June 12, T-Mobile will remove most of its restrictions on customers using their phones as mobile hotspots. The report is based on a leaked internal document (screenshot below) that TmoNews obtained. The wording on the document is a little confusing but as I understand it:
  • Users on all T-Mobile plans that include a high speed data limit, including Simple Choice and Simply Prepaid plans, will be able to use their entire high speed data allowance for hotspot if they wish.
  • When a user reaches their high speed data limit, hotspot will be available at throttled speeds instead of being cut off. T-Mobile's throttled speed is 128 Kbps or less.
  • Currently available (not grandfathered) plans that include unlimited, un-throttled high speed phone data with a cap on hotspot data will get 2 GB more high speed hotspot data and unlimited throttled hotspot data after the cap is reached. The only prepaid plan this applies to is the $80/month Simple Choice plan which currently has a 5 GB hard cap on hotspot. Starting June 12, that plan will include 7  GB of high speed hotspot and unlimited throttled data.

This is a very welcome change for T-Mobile users. Data is data and whether you use it on the phone or for hotspot is nobody's business but yours. Blocking hotspot or charging extra to use all the data your paid for hotspot just seems wrong. Hopefully, this move by T-Mobile will put pressure on the other carriers to allow their customers to use their data as they wish.

Update: the hotspot changes are now in effect. All Simply Prepaid and Simple Choice plans now permit using their entire data allowance for hotspot with the exception of the $80 unlimited Simple Choice plan which includes 7 GB of unthrottled hotspot and unlimited throttled hotspot.

Unfortunately the $30/month 100 minutes, 5 GB plan has not been upgraded and is still limited to just 100 MB of hotspot use per month.

Images: Facebook, TmoNews

Related Post: Prepaid Operator Profile: T-Mobile

96 comments:

Comment Page :
  1. That's good. There's no reason not to allow people to do what they want with data they paid for.

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    1. Well, the carrier making more money is a good reason :-)

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    2. Tmobile is in business to make money for their investors. Nothing more.

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  2. This is a very welcome addition. I'm sure the FCC will impose this on all prepaid carriers soon anyhow. But the fact that T-Mobile was the first to do this makes me wish they would work here. I'd have switched to them based on that alone because Time Warner here is very unstable and causes my station to cut out.

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    1. I am just as sure that the FCC will not impose this on all prepaid carriers. If they do, some prices will probably go up, since carriers will compensate for revenue lost on data-only plans for hotspots, tablets and computers with cellular built-in.

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    2. I'm with Legacy on this. I hope the FCC fines those who make "some prices go up". Because all that is happening is people are using data they have already paid for.

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    3. These fees for hotspot data are ridiculous. It's like the municipal water board making you pay a special fee for water that you pay for that you decide to use to fill your aquarium or hot tub.

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    4. The last time we let a bunch of young lawyers regulate an industry we got stuck with government-controlled healthcare. Not more affordable like they promised. Whenever the government regulates, prices go up and choices are eliminated. No thanks. When you agree to a plan that restricts using the phone as a hotspot, the company can do the math and offer a more competitive price. I don't want to pay for something I don't want or need. Let the market decide. There are plenty of plans you can choose now if you want to use hotpot feature. Just pick one of those! Don't push to eliminate choices for me and most others. Choice is good, and your needs are different than other people's.

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    5. All that was said before "Don't push to eliminate choices for me and most others. Choice is good, and your needs are different than other people's." in the above paragraph contradicted the quoted conclusion.

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    6. That is only true for people who have a need for hotspot use on their phone. For everyone else, mandating hotspot eliminates the ability of carriers to offer a lower-price choice that restricts hotspot use. And that mandate increases regulatory compliance cost, so the carriers add even more to everyone's bill.

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    7. It costs the carrier the same whether you use 5 GB of data for hotspot or straming YouTube on the phone. Allowing tethering costs the carrier nothing vs. not allowing it.

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    8. " mandating hotspot eliminates the ability of carriers to offer a lower-price choice that restricts hotspot use"

      Just like mandating the freedom to watch Netflix eliminates the ability of carriers to offer a lower-price choice that restricts Netflix use.

      ... or just like mandating the freedom to search map utilities eliminates the ability of carriers to offer a lower-price choice that restricts map use.

      ... or just like mandating the freedom to download manga eliminates the ability of carriers to offer a lower-price choice that restricts manga reading....

      etc etc etc. With all due respect, your claim is nonsensical. There is no need for a lower-price choice that restricts anything done with the data we have paid for from a consumer OR seller point of view, beyond the very transparent attempts to create the perception of a difference.



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    9. Dennis said: "It costs the carrier the same whether you use 5 GB of data for hotspot or straming YouTube on the phone. Allowing tethering costs the carrier nothing vs. not allowing it. "

      Exactly. Dennis. Did you know that mandating that a carrier allow you to download pictures of trees is an outrage against consumers, as it prevents the carrier from selling a lower-priced, tree-pic-free, special service? As well all know, consumers clamor for this, no more and no less than the consumers clamor for hotspot-free services. An outrage, I tell ya. An outrage!

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    10. "Allowing tethering costs the carrier nothing vs. not allowing it."
      I don't agree. If you can use hotspot on your phone, you are more likely to use more of the data you bought each month. And the more data customers use, the more the carrier pays to the network operator for (bulk) data. I am confident that carriers keep track of the numbers, and they know that if they allow hotspot, overall data consumption and their related costs will rise. If they prohibit hotspot use, they can count on many, if not most customers not using their full allotment each month. Which saves them money. They probably keep track how much data is not used. And to be more competitive, they can pass on some of this 'savings' in the form of lower prices to gain more customers.

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    11. There are more shady marketing practices in the cellular industry than any other business I can think of.

      Charging extra to use some of the commodity (data) you paid for a specific purpose (tethering) is an one.

      Another is requiring users to buy a set amount of data that expires in 30 days. People buy a bigger data plan than they need for fear of running out.

      What other business does this? Would you accept it if your water utility said you can buy 2000 gallons of water a month for $30 or 5000 gallons for $50. But whichever you choose, If you use it all up in less than 30 days your water is cut off or reduced to a trickle until the end of the 30 day period. That's the way the cellular industry sells data.

      The fairest and most equitable way to sell data is the same way water or electricity is billed, by actual usage like traditional PayGo or Google Fi works. That way no one is buying more than they need and the carriers don't need to create arbitrary rules like "fair use" or a ban on tethering to maximize profit.

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    12. So ironic. Government deregulation allowed new players to invest billions in new, innovative telecomm products and services. And provided an opportunity for this blog to succeed with all those choices. Now it sounds like many readers want the gov to re-regulate the market again, which will discourage investment and raise barriers to entry into the market (e.g., reg compliance cost increases). Reduce innovation and options for customers. But these same readers want prices to continue to go down, not up. That is unrealistic.

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    13. Mobile comm business practices are sweet and innocent compared to software licensing practices. Oracle and Microsoft are just two of the huge number of offenders that lay traps that they spring on customers after baiting them into contracts with illusory discounts. The end user license agreements are written in such a way that they are almost impossible to understand. A company needs a huge internal audit and compliance team to avoid being put out of business by a successful lawsuit for violating their use rights. It's very ugly, and orders of magnitude more complicated than anything you can complain about on this blog.

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    14. "There are more shady marketing practices in the cellular industry than any other business I can think of."

      Have you ever heard of the healthcare and health insurance industry?

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  3. This is great news. Cricket and Boost mobile need to do the same with their plans.

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    1. Numerous Cricket CS have told people it is OK to use hotspot on Cricket.

      I have done it personally myself. Now are there any anendotes of them lowering the boom on it, stopping it?

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  4. When I read this I thought it was a good thing and about time. Then I realized that I am left out, simply because I signed up for the unlimited when it was $50 + $20. Punishment for early adoption and torment for loyal customers, as usual.

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    1. $10 for 2gb of extra tethering is a good deal. They won't make you happy x2. You're already grandfathered so why feel punished?

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    2. T-Mobile is not first. Verizon Prepaid has had free hotspot for awhile now. So has AT&T Gophone. Just saying.

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  5. Makes the Walmart $30 plan a viable option to replace your cable/dsl home internet.

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    1. ...for only the current small part of the country covered by the native T-Mobile network. Not viable for most of the country. At least until and if the T-Mobile expansion actually happens.

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    2. Mandating that a company allow tethering WILL cost the phone companies more. People who may only be using 2-3 GB of data on their phones because the screen is small or web pages are poorly formatted will begin using more by tethering to a computer or tablet. I agree that we did pay for it so let us use it as we wish. But the phone companies charge what they charge based on percentages of people who are paying for what they are not using to cover the people who are using tons of data. If the "over-payers" suddenly stop over paying, everyone's price will go up. Mandating almost always has consequences. That said, I still wish they all allowed tethering. Switch to a carrier or plan that allows it, that's the free market.

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    3. I knew somebody would complain about T-Mobile's smaller native coverage footprint eventually...

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    4. Secret plan is the BEST!

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    5. @ SDLOCK @ 4:22 PM...I knew you'd show up on THIS one! What took you so long My Friend?

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  6. They have not done this because it is not as profitable, just as prepaid customers are not as profitable as contract ones. My guess is contract ones do not use their data they have paid for and it is much more predictable whereas prepaid ones will use it all and hold back (higher usage and less revenue).

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  7. Does this include the $30 Wal-Mart plan?

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    1. Speculation is that it will but we won't no for sure until Friday.

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    2. If the notice is legit, all active plans with data are covered.

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    3. Dennis, do you think that EVENTUALLY T-Mobile MVNOs, i. e. PTEL & ULTRA, will allow tethering/ hot spot? Is it T-Mobile that sets the rules for its MVNOs?

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    4. That's hard to predict, MVNOs buy data by the GB from T-Mobile and determine their own terms of service. It's in their economic self interest to ban or block hotspot so that customers use less data. I don't think the MVNOs taht currently ban hotspot will start allowing hotspot unless they are forced to by regulation or competitive pressure.

      I believe that Ting and Google Fi are the only T-Mobile MVNOs that currently permit hotspot. It's to their advantage to allow it as they charge for data used rather than the "use it or lose it" system most MVNO plans use.

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    5. Consumer Cellular also allows hotspot use on their T-Mobile and AT&T tiered plans. Just call CS to turn it on. They want people to know this can use up the data pretty fast.

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    6. @ DENNIS @ 9:25 A.M. Thanks for the information! ... Hey, you never can tell...I thought once upon a time that MVNOs & subsidiaries, i. e. Virgin Mobile & BOOST, would never allow LTE, but the competition became so ferocious, they had to provide LTE in order to keep up or go ahead of the rest..

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  8. To be fair. This will cost carriers more because people will surely max out their HS data plans.

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    1. Thus, they have not done it.

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  9. So I am on the $30 plan and pay an extra $15 for hotspot right now. Does this basically save me $15/mo?

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  10. It's foolish to say this won't cost a carrier anything. Of course it does. The lose an add on and make people will max out their high speed data if it's" free",

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  11. Will this apply to my $30 plan?

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    1. If you are on the active $30 plan, yes. All active plans with data will enable hotspot.

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  12. The small T-Mobile native footprint is relaxant when there are mentions of the Walmart plan. It's rather tiny, you are stuck on it, and Walmart sort of hides that.

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  13. Mandating that the company let you use what you pay for isn't a bad thing. And shy single out tether fir a silly ban? I bet Apple's new streaming music system will max out data allotments FAR more than tether use.

    I know in my experience, I gobble data far more on streaming music than tethering. I'm sure this is the case in general.... all those kids listening to music, few of whom would even want to tether a PC or Mac.

    I don't think your case is very strong.

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  14. Don't forget the hotspot add on is/was $15,so this will cost them money. But it also will add new customers so maybe it could be a win win.

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  15. Watch them eliminate the $30 plan. It's the only monthly plan with metered minutes you know that takes a lot of customer support issues.

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    1. Tmobile has a contract with Walmart so they have to honor it as long as it is in force. PayGo also has "metered minutes," and the software to handle this is mature. I don't expect the $30 plan to go away. I suspect it is a gateway drug to Simple Choice. T-Mobile flipped 180,000 prepaid customers over to postpaid service in Q1.

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  16. The sky is hardly falling if we move toward regulating away the abhorrent practice of charging different rates for the "type" of data we use. This type of charging is not any sort of innovation, and good riddance to it.

    Data is data...

    Or to the grammar pedant, data are data.

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  17. The freedom of the Internet is in much, much more data from rumbles in the Federal Election Commission to censor political content in blogs than it is from FCC regs to ban carriers from such "innovations" as charging us more for Netflix data than for Facebook data.

    And for those who claim that stopping silly data discrimination will stifle carriers from "innovating"? Fine. Let the carriers provide the bandwidth, which we will pay for. Let others provide innovative content. It's very troublesome conflict of interest when common carriers get involved in the content business. This must by law be kept separate... so, say, Charter can sell cable TV and also act as an Internet common carrier, but it cannot do something destructive like kill Internet data that competes with its cable business.

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  18. Will this effect T-Mobile MVNOs?

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    1. Not directly although competitive pressure might make some MVNOs start allowing tethering.

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  19. "Blocking hotspot or charging extra to use all the data your paid for hotspot just seems wrong."

    The counter argument is that the plans are priced based on the expected usage of a phone as the endpoint, not a PC or an Xbox. Why don't people contend that the unlimited plan should have unlimited minutes? The data is the same, right?

    Sure, I'd love for tethering to b universally free, but I'm not going to pretend that I don't understand the distinction between the two use cases.

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  20. I don't think T-Mobile is doing this just for laughs. This might have something to do with the new rules about ISPs being classified as a public utility. T-Mobile may have feared an FCC lawsuit and acted preemptively. Being a European company they're accustom to more rules and regulations than US companies are. We might see other carriers get hit by the FCC over this and I wouldn't be surprised if they refused to comply and dragged it through the courts until the next election.

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    1. With this sensible regulations to stop abusive nonsensical practices and to make carriers act like carriers, we could become like Europe, with much more competition and lower prices.

      The US cell/data/carrier rates are among the highest in the world, and artificially so. ( and no, it is not because the US is spread out and sparse: other large countries have much lower rates, and US carriers in densely populated areas still way overcharge.

      I hope you are right that fear of the FCC has made T-Mobile treat its customers better.

      Carriers need to act like carriers.

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    2. No good Tmo deed goes un-criticized, apparently. Projecting an ulterior motive for Un-carrier moves looks pretty desperate to me. They are very popular, and they are really working.

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    3. Not sure what "uncarrier" means other than not being as good as a regular carrier. That certainly in my applies to TMO's much smaller coverage. I prefer carriers over uncarriers, personally.

      I don't see any ulterior motive, however. I just think they are improving their service, and won't feel it is necessary to clobber customers elsewhere for this change. As it is unnecessary.

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  21. This is like a test to see who understands what net neutrality is. Data is data, packets are packets, no judging or filtering or charging different rates for different data. That is what being neutral MEANS.

    I buy something, I get to use it. Yes, music freedom is not neutrality. Hotspot should not cost extra or be capped differently from any other use of data.

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    1. Yes, the "Music Freedom" scheme is the camel's nose under the tent flap.

      It's only a good idea if you make ALL music... and other data free. Otherwise, stop the scheme. Packets are packets. Outside of illegality, it is not a carrier's business what I do with the data I pay for.

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    2. Again though, the company is charging for the average use case. They will charge a certain amount for flip phone data plans, more for smart phones and still more for tethering.

      There are plenty of people out here who are spoofing their smartphones to look like featurephones in order to get $15 unlimited data plans that were meant for Motorola Razr's from 2006. Is that permissible?

      There are cricket customers who are satisfied with $35 for 2.5GB even though they only use 900mb. The carrier factors those kinds of users into the pricing. If every single $35 plan user had 3GB worth of traffic each month, the price would go up. Tethering is going to increase the average data usage of accounts (even ones with limits), which I believe justifies the price increase.

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    3. +1. T-Mobile can easily afford to do this because they have more spectrum deployed per customer than any other major carrier. There will be capacity issues in a limited number of places, and they are already addressing this in their network upgrades. Tmo users already consume more data than any other carrier's users. Tmo's marketing team will really promote this move, as usual. Fits their image as a 'cool brand.'

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  22. While it will be hard to calculate any added costs because of this, it will be easy to see the reduced revenue from hotspot charges, tablet plans, etc. They probably have a plan to get some of that back somewhere.

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    1. There should be no additional cost. The customers already paid for it. They should not try to screw over customers in other ways due to their own poor planning. If they sell someone 2Gb a month (one example) they should have planned on customers using 2Gb a month. I hope that any company that plans on clobbering their customers with rate hikes over customers using exactly what they paid for sees a loss in customers. As this would be unjustifiable.

      Besides, the new Apple streaming serving will use far more data than hotspots....

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    2. They might figure some people will move their plans up to a bigger LTE plan.

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  23. I've thought about going Verizon or AT&T because of this. Besides they can "Try" and limit my hotspot use all they want. I'll just "Hack" the phone or use a tethering app without their knowledge as I already do. If I use up my data what do I do? BUY MORE!! How does cause a company to Lose Money?? It does NOT. If fact if a hotspot user needs more data he or she will pay for another month of use. I've done it with my Us Cellular phone. You pay for more data and I can keep tethering right along. Meanwhile they think I'm using my phone. Don't think the phone companies suddenly were nice and allowed Unlimited USA Long distance. It was US phone phreakers who hacked the ANI (Automatic Number Identification) which was used to BILL you. We had figured how to make it look like a disconnected number and posted it on 2600 magazine years ago. Kids all over the USA had used this method and in order to stop it the phone company would have had to re invent the phone. So too is tethering. Hackers hacked it now they can't stop it. Cost them too much to re invent the wheel. Sometimes white hacks are for the good of mankind. Now you know why FREE long distance is FREE. The phone companies will never admit to it but it is as it is back around 1992 this happened and as more "Codes Kiddies" used the ANI jammer the more they could not stop/trace it. So now you have a fair flat rate for your long distance. Phone companies have tried for years to make 200-500% mark up and no other business has done it till 2002 when the RIAA tried it with music. And now you have people using VPN's and anonymous proxies to bypass their little IP Address tracking. See how this works? You can only bully the masses for so long until they fight back and take the big bullies down.

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  24. Hmm, takes effect Friday. What else takes effect Friday?

    http://arstechnica.com/business/2015/06/net-neutrality-takes-effect-friday-isps-scramble-to-avoid-complaints/

    "The FCC order's most specific guidelines prevent Internet service providers from blocking or throttling traffic or prioritizing content in exchange for payment. "

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    1. I'm going to celebrate Saturday by streaming Netflix to my bigscreen HDTV from my Hotspot-connected phone.

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  25. Music Freedom was an amazing innovation, and the FCC won't even review it. Now T-Mobile gives hotspot use on all plans with data. No need to break the security on your phone to use hotspot. Just two of the reasons why people are switching to Tmo in droves. Keep it up!

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    1. I think "Music Freedom " is a terrible idea and violates net neutrality. It is unfortunate that it survived through a loophole in the wording.
      http://www.theverge.com/2014/6/18/5822996/t-mobile-music-freedom-net-neutrality

      Treat all data the same.

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    2. Correction.Hotspot hasn't started yet. Don't jump the gun.

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    3. I love T-Mobile so far but they are still weak financially and thier parent company is Always looking to jettison TmoUsa.

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    4. Tmo is not weak financially. Their revenue is way up, and they are spending ~4.5B this year to improve the network. Their subscriber base has skyrocketed in the past 2 years, and every new customer is profitable.

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  26. I love this idea of allowing hotspot and I love Obamacare. A friend had pre-existing condition and could buy/afford health insurance before Obamacare. Hope you don't get sick.

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    1. Anon. Yes and I'm paying for it. You're welcome.

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  27. Official now.
    http://prepaid-phones.t-mobile.com/prepaid-monthly-plans/compare-monthly-plans?icid=WMD_PD_Q115CYRN_W1XQAMETHBJ1595

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    1. That page shows hotspot availability on Simple Choice Prepaid only not Simply Prepaid which is the way it's been since last year. Tomorrow Simply Prepaid will also get hotspot.

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  28. Way to confuse your customers Tmobile, "Simply Prepaid" "Simple choice prepaid" lol

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  29. That link is at least a year old.

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  30. It's June 12, and the high speed tethering is at 5GB for my account, which is on the $20 grandfathered unlimited 4G. So maybe after the leak, they read the blogs and figured it was easier and no skin off the real bottom line to give it to us.

    It amazes me how the vendors have managed to convince the masses that total downloaded bits are the same as bandwidth. We read about the evil bad data hogs. Honestly, if an account is causing the tower troubles, the network management will shut it down, one way or another, it's in the TOS. If the network is handling it fine, leave the people using what they pay for alone and let the people whose job it is to mange the network do that. The marketing people have calculated what to charge so they can make money and keep the data usage down to what they can provide. Realistically, I subscribe to unlimited so I don't have to worry about a cap. I don't torrent or even watch a lot of video.

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    1. It's June 12th and my account is the same as it was yesterday. On the $30 plan and still shows 100MB tethering.

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    2. T-Mobile doesn't seem to have updated their site to indicate the changes yet. MetroPCS has updated theirs to indicate that all data on capped plans and 6 GB on the $60 unlimited plan can be used for hotspot..

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  31. 82 posts later and not a single mention that today is June 12th. It's like people want to gossip about tethering but when it's supposed to go live. Not a peep.

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    1. Are the new hotspot rules live? I haven't seen or heard anything from T-Mobile indicating they are. Still waiting.

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    2. http://www.fiercewireless.com/story/confirmed-t-mobile-adds-2-gb-mobile-hotspot-data-customers-unlimited-smartp/2015-06-18

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  32. Smartphone Mobile Hotspot IS A GO with T-Mobiles Simply Prepaid and Simple Choice Prepaid . On the Simply Prepaid Plan page click "Compare Our Monthly Prepaid Plans" there it is.

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    1. Yes, and there is still no mention of tethering in the $30, 100 min, 5GB plan which is under "Browse Plans."

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    2. It's always said that. I have tethering on my $30 plan but it's just 100MB.

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  33. It's NOW June 14th...Has anyone gotten notification about getting the new "unlimited" hotspot on their Simply Prepaid, especially on the ( as SDLOCK puts it) $30 Secret Plan?...Would love to know...Thanks!

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    1. Nope. Not a peep about it. Starting to wonder if the $30 plan even gets it.

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    2. The $30 plan didn't get any love, unfortunately. It's still limted to 100 MB of hotspot use per month.

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    3. If you need to tether the 5GB and don't want to root, pick up an old LG Optimus T for a few bucks. Tethered the $30 plan just fine in stock condition for me. I got 3-5 Mbps with a decent signal.

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  34. NEGATIVE on the $30 plan. I got a message saying that I've reached my limit while tethering. Looks like the secret plan (unlimited text, 100 minutes, and 5 GB of LTE data with 100 MB worth of courtesy tethering) does not get the benefit of all-inclusive tethering.

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  35. I can no longer use my Hot spot since I call costumer service to add some top up now even though I change to the 60$ plan I can barely use it anytime I am trying to I only have the T-Mobile as my Home Page and I am not allow to navigate. I'm so disappointed cause they can't fixe that at the metro PCs store and I need my computer I feel like trapped.

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  36. I can not use my Hotspot since I moved on the $60 plan, I only have access to T-Mobile as my Home Page , I am not allow to navigate, I very disappointed cause it can not be fixed at Metro PCs store neither the customer sevices. I feel like trapped.

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