T-Mobile offers free video streaming; Sprint restructures

Telecom industry observers had paid attention on two U.S. carriers this week: T-mobile that plans to offer free streaming service, and Sprint that plans to restructure the company.

T-Mobile announced that it plans to give some benefits of its postpaid service to its prepaid MetroPCS brand, including unlimited music and video streaming.

According to the New York Times, the wireless company would let customers watch as many movies as they wanted on video streaming services without incurring higher data usage.

The announcement following the launch of T-Mobile's Binge On, a program that offers unlimited video streaming from 24 of online video providers including Netflix, Sling TV and HBO Now at no charge to all its customers who subscribe to 3GB or higher per month.

T-Mobile noted that the offer comes by utilizing the technology to optimize streaming video for mobile device screens, and to maximize resolutions at DVD or better quality while minimizing data consumption.  The optimization technology limits free videos to a resolution of 480p.

T-Mobile said that its free streaming plan is good for consumers and for Internet businesses because it does not charge companies to be part of its free service.

But according to Forbes,  T-Mobile appears to use the offer as a means to attract new subscribers, while encouraging customers on its low-end plans to migrate to higher plans.

The offer raises concerns that free streaming video with large bandwidth could end up crowding the carrier's network on its middling spectrum position. In addition, Binge On could raise net neutrality concerns with its free streaming offer.

Meanwhile, the U.S. number 4 carrier, Sprint Corp., announced plans to restructure the company, including a split into four regional offices, and job cuts.

A Bloomberg report revealed Sprint's CEO statement that the company takes the action to ensure its strength and long-term success.

The move will help the company to cut costs to reverse a seven-year streak of subscriber losses. While the current structure includes separate teams for each sales channel, the company's  new structure will include united team based on geographical units.

Kansas-based Sprint plans to organize its sales operations from a centralized model to a local decentralized model. The restructuring plans include the creation of four regional offices with its own head and separate presidents in charge of 19 key markets.

The move also includes job eliminations which could take place before the end of January 2016. The company is aiming to cut as much as $2.5 billion in run-rate reductions from its more than $20 billion in annual costs.