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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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ads on this article
By JimKiler on 12/7/2012 9:40:51 AM , Rating: 2
I wish i did not see an ad for a gay cruise when reading this article. It claims my ads are from my browsing history but if that was true i would never see a gay cruise ad.




RE: ads on this article
By BigEdMan on 12/7/2012 9:48:01 AM , Rating: 2
Ads? Where do you see ads here?


RE: ads on this article
By Motoman on 12/7/2012 10:14:06 AM , Rating: 2
He probably isn't using Opera...so he gets bombarded with ads.


RE: ads on this article
By Hellfire27 on 12/7/2012 10:27:26 AM , Rating: 2
Firefox + NoScript + FlashBlock = No Ads


RE: ads on this article
By johnsonx on 12/7/2012 2:22:27 PM , Rating: 4
quote:
It claims my ads are from my browsing history but if that was true i would never see a gay cruise ad.

so you haven't been cruise shopping? Then it's probably based on all the gay porn you've been viewing.


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