Print 43 comment(s) - last by Mike Acker.. on Dec 11 at 7:39 AM

T-Mobile won't subsidize the cost of the iPhone

Deutsche Telekom announced yesterday that T-Mobile would begin selling Apple devices next year. T-Mobile CEO John Legere went on to confirm that the iPhone would be among the Apple products the wireless company will sell next year. However, he is warning that T-Mobile will offer the iPhone in a drastically different way than other carriers. T-Mobile is ending subsidies on all of its phones.

What that means is if you want the iPhone on the T-Mobile network, you'll pay for the entire purchase price of the phone upfront rather than getting a discount in exchange for signing up for a contract. T-Mobile is planning to shift to unsubsidized Value Plans offering customers cheaper rates for voice and data.

T-Mobile has already stated that 80% of the activations it had last quarter were customers choosing its new Value Plans. The plans are so successful that T-Mobile believes there's a huge demand for the pay up front and get a discounted plan sales model.
It remains to be seen if T-Mobile customers are willing to pay full price for the iPhone when other carriers are offering them a significant discounts.

Pricing for the iPhone ranges between $650 to $850 for unlocked devices. However, it appears that T-Mobile has a plan to help offset the huge upfront cost for expensive devices such as the iPhone 5. Legere has hinted that T-Mobile will sell the iPhone for $99 upfront and in charge subscribers $15 - $20 a month in payments over the following 20 months.

Source: Gigaom

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RE: Exactly!!!
By quiksilvr on 12/7/2012 9:20:39 AM , Rating: 5
This is how all phones plans should be. Pay full price for a phone, get a cheaper plan and don't be tied to any useless contracts.

That's exactly what I have now in fact. 2 lines, unlimited talk and text, and 2GB each for $100 a month.

RE: Exactly!!!
By V-Money on 12/7/2012 11:13:28 AM , Rating: 2
Same here, in fact I just switched to that plan when I added someone to my account. Before I was paying 70 for 550 min, unlimited texts and unlimited internet (4g up to 2GB)and she was paying 50 for 550 minutes and unlimited texts. Now both cost 99 a month for unlimited everything (4g up to 2GB).

I got out of my 2 year contract because I bought my last phone (galaxy nexus) unlocked from the UK before they were offering them here, so I didn't re-up my contract. She has just had her phone forever and doesn't want to upgrade yet.

RE: Exactly!!!
By Souka on 12/8/2012 6:41:59 PM , Rating: 2
I bet that iPhone5 with a subsidized contract would have likely been cheaper than a non-subsidized contract and 2-years of service.

Just a hunch...

RE: Exactly!!!
By just4U on 12/8/2012 10:11:00 PM , Rating: 2
I wish we could get plans similiar.. Here in Canada for two phones the cheapest I could find included 1G of data Unlimited evening/weekends 600 min a month daytime /w free text all for the low low price of $175 a month. Includes 30 free long distance minutes but you can add unlimited to each device for another $100.

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