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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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 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
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.

"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
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