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T-Mobile Is Giving Customers a Year of Free Data to Play Pokemon Go

There are few executives in telecommunications—or most other industries for that matter—who are better masters of free publicity than T-Mobile CEO John Legere.  —  And so, with the popularity of the Nintendo smartphone game Pokemon …

Fortune Aaron Pressman

Context & Ripple Effects

This move is the latest beat in John Legere's Un-carrier playbook, which by mid-2016 already included letting customers store and roll over unused data, lending phones and paying ETF fees to poach Verizon users via the Never Settle Trial, and handing out free shares of T-Mobile stock alongside movie tickets and Gogo Wi-Fi. Each giveaway doubles as a press event, and the Pokemon Go craze gave Legere his most viral hook yet.

The timing matters: Pokemon Go's surge made mobile data consumption suddenly visible in pop culture, and T-Mobile is converting that attention into brand equity at near-zero cost — the same formula the later coverage credits with more than doubling revenue since 2012.

First-order effects

  • T-Mobile customers get a year of zero-cost data specifically for Pokemon Go, an immediate perk aimed at the game's massive active base while costing T-Mobile only bandwidth it has already provisioned.

Second-order effects

  • Verizon and AT&T face pressure to answer with their own app-tied promotions or risk looking expensive by comparison, continuing the competitive dynamic the Never Settle Trial set off against Verizon.

Third-order effects

  • If the pattern holds, carriers compete less on raw data pricing and more on curated freebies and app-specific perks — turning network operators into marketing platforms that attach themselves to whatever consumer app is peaking.

The trend: T-Mobile's Un-carrier strategy keeps converting cultural moments into free publicity, with each giveaway raising the bar for what US carriers must bundle to stay competitive.