Will Facebook Deal Attract More T-Mobile Customers?

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Dec. 26 (Bloomberg) -- GoSmart, a T-Mobile subsidiary specializing in low-cost, prepaid phone plans, will offer free access to Facebook and Facebook Messenger to all customers, even those who don’t have a data plan. Ari Levy has more on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Props for really pushing the envelope.

Is this another example of that?

T-mobile needs a niche.

At&t and verizon on the market.

They are the devices we all use, iphone, samsung.

T-mobile has to find its way into the market.

They are doing it with price.

One thing is to do -- giving people free access to facebook, which is what they are doing.

For people who do not mind buying the data package.

Facebook presumably will be providing some sort of specific application or features that allow the app to be launched without a data plan.

The technology, how they are going to work the technology is not in the press release.

But it is an easy thing, it effectively means the carrier will be handling that data cost.

Imagine other websites aren't happy about this.

It is an interesting thought.

We don't really know who teen nubile -- who t-mobile has been talking to.

It is an interesting question.

If you don't have the resources facebook has, are you at a disadvantage?

There is an argument about innovation.

Sure, does the bigger company win because it has more users?

Shouldn't we be fostering these deals for smaller companies, there is a argument there.

Mark zuckerberg has been saying facebook should be available to everyone for free.

In the same way we have access to electricity and gas.

T-mobile has been taking a lot of risk.

We have seen the other carriers following suit in some cases but how is it working in terms of getting more subscribers to come over to t-mobile?

Certainly when you are offering a low-cost alternative to these high-cost packages, you're going to get some users.

You will see the migration happening.

The issue comes as a financing angle.

If you look at the operating margin, it is about 4.5% to 5.5%. so t-mobile is saying we are willing to operate at a thinner margin to be relevant, which they have to do.

Arotech editor, thank you.

We will be back with more of

This text has been automatically generated. It may not be 100% accurate.

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