Print 14 comment(s) - last by Myrandex.. on Jul 24 at 8:58 AM

T-Mobile says AT&T only wants to make more money

T-Mobile is coming out swinging in its fight against AT&T and the other major carriers in the mobile phone industry. T-Mobile will be running a new print ad Tuesday (the same day at AT&T’s earnings report) in the USA Today where it lashes out at AT&T and its new Next smartphone upgrade program. AT&T's Next program is billed as a way to allow customers to upgrade their devices more frequently.

However, T-Mobile says that AT&T's plan is simply another way for the carrier to make more money. The ad features a quote from a story written by The Verge reading, "AT&T’s reaction to T-Mobile’s transparency is to be more deceptive than ever."

T-Mobile writes in the ad, "We wouldn’t call it deceptive, exactly. Calculating, sneaky, underhanded, maybe, but not deceptive."

T-Mobile has its Jump program that allows subscribers to upgrade their device up to twice a year at a $10 monthly fee plus trading in their current smartphone. T-Mobile says that the other carriers early update programs don't benefit consumers because AT&T and Verizon eliminated phone subsidies without lowering the monthly rate.

T-Mobile's Jump plan eliminated all smartphone subsidies when it launched back in March and lowered monthly plan rates as well. T-Mobile also added financing plans that allow users to pay devices out over a period of months.

“There are real and material differences between what we are doing and the so-called upgrade programs that AT&T and Verizon are doing,” T-Mobile marketing chief Mike Sievert said in a telephone interview on Monday with AllThingsD.

Sievert says that the plans offered by AT&T and Verizon, "are a mechanism for AT&T and Verizon to take more money from customers than even those companies have ever done before."

Source: AllThingsD

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By talikarni on 7/23/2013 12:53:36 PM , Rating: 4
Most major carriers charge you a $30 upgrade fee, and now you pay almost full price for the phones, yet still they charge us the same higher prices they did before when they had the subsidized phones... If I wasn't getting mine through my work, I would have gone to T-Mobile by now.

RE: truth...
By GulWestfale on 7/23/2013 2:16:12 PM , Rating: 2
it's not much different in canada. i'm with telus, and use their pay as you go service for my galaxy note (N7000, international version, unlocked and unbranded, paid for in full). this way i spend 50 bucks a month (20 for unlimited weekend calling and unlimited text; and 30 for 1GB data), and have no contractual obligations such as early cancellation fees.
but if i were to sign up for a contract i'd have to pay more each month, regardless of whether i brought my own phone or not. it's ridiculous.

By Jeffwagner on 7/24/13, Rating: 0
By Motoman on 7/23/13, Rating: -1
RE: derp
By Kurz on 7/23/2013 1:10:14 PM , Rating: 2
This is the reason I will only buy Google Nexus Phones.

RE: derp
By flyingpants1 on 7/23/2013 1:13:37 PM , Rating: 4
Except everyone has the option to do that already.

RE: derp
By Motoman on 7/23/13, Rating: -1
RE: derp
By Myrandex on 7/24/2013 8:56:16 AM , Rating: 2
Unless you are using that Google Nexus phone on a plan that offers discounted pricing, and not a full price plan on AT&T, Verizon, etc., you are giving the carrier extra $ every month that would typically be used to pay off the phone subsidy.

All AT&T and Verizon are doing is giving users the option to theoretically pay off the subsidy early. I do think it is complete BS that the monthly rate doesn't drop after the phone is paid off, and I always have. When my contract is up, I am more than likely jumping out to a cheaper MVNO and will be saving up to purchase devices at full price. Those Cheap / Free devices are what gets people into these contracts, and scoring high end phones for free is quite nice.


RE: derp
By Concillian on 7/23/2013 1:38:19 PM , Rating: 2
And which is the only of the 4 major carriers offers a discounted plan with an unsubsidized phone in the US?

I realize that they're all out to get us, but in this case T-Mo is right. Bring your own phone that you buy off-contract to AT&T and you pay the same price as someone who buys a subsidized phone. You have to give T-Mo some points for trying here.

RE: derp
By Deadeye37 on 7/23/2013 2:58:57 PM , Rating: 2
And that's why T-mobile's plans are now great. You're not locked into a contract. You buy a phone and if you don't like the service, you can cancel the next month. The only caveat is if you bought the phone using the payment plan. You have to pay off the phone first before you cancel service (which you can do any time you want).

As for T-mobile's JUMP! program, it is a good plan if you already buy handset protection for your phone. It either saves you $3/month or you just pay an additional $2/month depending on your coverage. The JUMP! program has handset protection built into it already, so you don't have to pay for it separately.

So, no contracts, option to pay the phone interest free using monthly payments, and a lower monthly rate because of no subsidizing. Definitely sounds like the answer to your gripes :)

RE: derp
By Motoman on 7/23/13, Rating: -1
RE: derp
By Reclaimer77 on 7/23/2013 10:52:06 PM , Rating: 2
All of those things would go away, if consumers didn't choose them en-mass. That's how capitalism usually works.

I'm trying to understand how anyone is better served by having less options in a market.

I realize you feel things *should* be a certain way, but when you start talking about forcibly making the world fit your ideology, you're talking like a tyrant.

We get your point, we just don't HAVE to agree with it.

RE: derp
By wolrah on 7/23/2013 11:24:35 PM , Rating: 1
The practice of offering long-term contracts with subsidized phones and ETFs should be gotten rid of entirely.

Except that's already exactly what T-Mobile has done. There is no contract on the phone service itself. The only commitment is if you choose to finance the phone, in which case the "ETF" is to pay off the remaining balance. No penalties, just pay what you owe and the business relationship is over. There's no interest or anything like that, for my GS4 it's literally $20/mo for two years on $480 financed.

Basically the only "catch" is that they won't finance your purchase of a phone that's not being used on their service. I really can't see any good reason to bitch about that. If you want to have a phone you don't pay for up front and can jump between carriers with on a whim, just use a credit card like you would with any other product. The amount is exactly the same.

RE: derp
By Myrandex on 7/24/2013 8:58:43 AM , Rating: 2
I give them credit here too! If only they offered the same coverage as AT&T (my current choice) and Verizon in my area, inclusive of LTE. I'm more than likely hopping off to an AT&T MVNO when my contract is up due to the coverage, but I really applaud T-Mo's efforts here.


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