MetroPCS Communications (NYSE:PCS) Decided To Go Aggressive Against Rivals

MetroPCS Communications Inc(NYSE:PCS), the fifth largest company to target low-income urban households with 9.3 million subscribers, has made a massive movement, going against the flow of the biggest phone companies.

The company has decided and announced that its subscribers would now be able to browse unlimited data, calls and texting for $55 per month. Though the offer is live for a short span of time, but the customers can keep the rate if they sign up now.

The company had earlier been offering unlimited data for $70 per month and also a plan with 2.5 gigabytes of data for $50 per month. The limitation of this plan, however, is that it slows down data service once subscribers hit that limit.

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AT&T Inc.(NYSE:T) and Verizon Communications Inc.(NYSE:VZ), known as the biggest service provider, have stopped providing un-limited data and are even persuading to shift their customers to limited data plans from unlimited-data plans.

 Tom Keys, MetroPCS' chief operating officer said that "We're mindful of what capacity we have in every city — the bandwidth — and we wouldn't put something out there we couldn't handle". MetroPCS Communications Inc. has just activated a new fourth-generation, or "4G" data network, leaving it with some spare capacity.

However, when comparisons between the speed provided by MetroPCS Communications Inc. and that of AT&T and Verizon are drawn, it is found that the speed of MetroPCS is below average. AT&T and Verizon average download speed is 5 to 12 megabits per second whereas MetroPCS provides only 3 to 5 megabits per second. Being a low-cost service provider, it does not have enough space on the airwaves like AT&T and Verizon.