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Why T-Mobile is offering data rollover: CEO

T-Mobile announces rollover data

T-Mobile moved on Tuesday to further disrupt the mobile services market by offering customers the opportunity to roll over unused monthly data, a first for a major carrier.

CEO John Legere told CNBC's "Power Lunch" that the plan is meant to attack one of the most infuriating aspects of cellular service: how carriers handle the purchase of data.

"This is a $50 billion issue, where carriers are taking back on average 3 gigabytes of data a month per 100 million customers," he said.

T-Mobile customers will be eligible for the program, called Data Stash, beginning in January. The carrier will give every qualifying line 10 gigabytes of 4G LTE data to start.

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The carrier's aggressive pricing policies have contributed to a climate in which major carriers are increasingly offering discounts in a bid to win or keep customers.

Asked whether investors should be concerned about T-Mobile's profitability, Legere said the company is the fastest-growing wireless company in the United States.

T-Mobile posted lower-than-expected earnings in the third quarter, turning in a 12-cent-per-share loss on revenues of $7.35 billion. Shares of T-Mobile US are down about 18 percent over the last three months.