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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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Switched to Virgin Mobile
By tayb on 12/7/2012 10:33:09 AM , Rating: 2
I switched to Virgin Mobile, upgraded to unlimited data, upgraded to unlimited texting, and upgraded my number of minutes. And I'm saving $50/month from my previous plan.

I went out and bought an HTC Evo V 4G at Best Buy and had them price match the $199 special that Virgin Mobile was having. The phone isn't top of the line but it has 4G, it has 3D (gimmicky but fun to play with), and it's running 4.0+.

The consumer market in the US is very confusing. People willingly screw themselves, they'll bitch about it, and then they'll do it again.




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