GoSmart, the prepaid arm of
) has joined forces with
) to offer unlimited access of the popular social media site to
its customers, including those who don't have data on their plan.
T-Mobile is the first operator in the U.S. to offer free FB
access to its customers.
From Jan 2014 onward, GoSmart customers simply have to log on
from a browser or from their Facebook application embedded in
their phones. This free access to Facebook will not eat up data,
thus allowing further scope for browsing. While the terms of the
deals remained undisclosed, T-Mobile might share its
advertisement cost with Facebook.
Facebook has gained tremendous ground in the last few years
and is undoubtedly the most popular social media site in the
world, with close to 1.2 billion active monthly users. Nearly
half of these users use their mobiles to stay connected to
Facebook and share their photos and videos. This tie-up with
T-Mobile is part of the social media giant's effort to make the
world more open and connected. In this context, Facebook has
already struck similar deals with operators in emerging
Prepaid service is quickly becoming a competitive segment
within the U.S. telecom sector as top shots lik
e AT&T Inc.
) is looking for expansion within the space. The no-frill nature
of the prepaid service is allowing carriers to tap new customers.
GoSmart is a low cost prepaid service with monthly plans starting
at $25 per month with unlimited call options. The company
attracted 24,000 GoSmart customers in the third quarter of
We believe that offering free Facebook access is a strategic
move by T-Mobile to bring in new customers, who were previously
not using data products and have been induced to access the
Internet from their mobiles. This in turn will increase the
prospect of T-Mobile's prepaid service.
T-Mobile, which operates with
Verizon Communications Inc.
) currently carries a Zacks Rank #3 (Hold).
FACEBOOK INC-A (FB): Free Stock Analysis
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