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T-Mobile doesn't want to spend billions just to get the iPhone like some competitors did

With the massive popularity of Apple's iPhone, you would think every carrier in the United States would want the device on their network. Verizon, AT&T, Sprint offer the iPhone, as do several smaller regional carriers. However, T-Mobile isn’t officially on the iPhone bandwagon yet.

A T-Mobile executive as recently stated that the carrier knows it has lost customers by not carrying the iPhone, but it's not willing to make major sacrifices just to get the device on its network.

Jim Alling, COO of T-Mobile USA, said, "Make no mistake about it: We would love to carry the iPhone. However, we want the economies to be right for us."
 
Alling also noted that T-Mobile didn't want to sign a deal similar to its competitors. Fierce Broadband and Wireless reports that Alling is making a veiled reference to a deal Sprint made to carry the iPhone in 2011 that cost $15.5 billion. Sprint doesn't expect its iPhone operations to become profitable until 2015.


Apple iPhone 5

Alling did note that T-Mobile's SIM-only Value Plans have attracted numerous iPhone owners from other networks. He said that there are 1.5 million unlocked iPhones operating on the T-Mobile network right now.

The comments were made during a discussion at the 12th annual Morgan Stanley Technology, Media & Telecoms Conference in Spain. Some comments were also made about T-Mobile and its upcoming merger with MetroPCS. That merger is expected to take place early next year and it seems both T-Mobile and MetroPCS feel the same way about offering the iPhone.

Metro PCS COO Tom Keys said last summer, "It would be harmful to MetroPCS to have to cut out part of our handset portfolio to accommodate one phone from one provider that the economics could be at risk."

Source: Fierce Broadband and Wireless



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By tayb on 11/21/2012 10:31:02 AM , Rating: 2
Okay so I did a bit of research and it turns out that Sprint committed to buying 30 million iPhones and THAT is why Sprint took such a large hit. That answers the HOW for Sprint but it doesn't answer the WHY and it doesn't explain T-Mobile. Is Apple requiring carriers sign contracts guaranteeing they'll buy a certain number of phones in a given time frame?


By sprockkets on 11/21/2012 11:44:23 AM , Rating: 5
Just look at verizon and all the concesions they made to have the iphone, no 1 year contracts, no early renewals, no employee discounts, higher ETFs, etc. It practically took anything worthwhile out of Verizon.

Apple requires all sellers sell the the iphone for $200, while the cost of the phone unlocked is around $100 more than most other phones. In other words, they can screw carriers of $100, because they can. Plus those carriers get no branding on the product either.


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs














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