T-Mobile to End Smartphone Subsidies, Offer Cheaper Value Plans
December 7, 2012 8:40 AM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
12/7/2012 11:13:28 AM
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.
12/8/2012 6:41:59 PM
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...
12/8/2012 10:11:00 PM
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.
"Game reviewers fought each other to write the most glowing coverage possible for the powerhouse Sony, MS systems. Reviewers flipped coins to see who would review the Nintendo Wii. The losers got stuck with the job." -- Andy Marken
Quick Note: T-Mobile to Begin Selling Apple Devices Next Year
December 6, 2012, 2:32 PM
HP Adds $99 Windows Tablet, $199 Windows Notebook to Stream Family
September 29, 2014, 7:17 PM
Following Quirky Passport, BlackBerry Aims to Release One Unconventional Device Per Year
September 29, 2014, 6:45 PM
New Optical Cloak is so Beautifully Simple You Can Build Them at Home
September 29, 2014, 5:10 PM
Samsung Galaxy Note 4 Owners Report Gaps Between Screen, Body
September 29, 2014, 3:40 PM
GoPro Introduces Three New "Hero" Cameras
September 29, 2014, 10:08 AM
LG Prepares Yet Another Smartwatch, Readies Call-capable Model for Sprint/Verizon
September 28, 2014, 12:00 PM
Most Popular Articles
iBend: Reports Grow of Razor-Thin iPhone 6+ Folding Like Origami in Your Pocket
September 23, 2014, 6:08 PM
Appalling Negligence: Decade-Old Windows XPe Holes Led to Home Depot Hack
September 8, 2014, 8:58 PM
iPhone 6's "Focus Pixels" Are Already Used in Galaxy S5
September 23, 2014, 3:10 PM
New AT&T Mobile Share Value "Double Data" Promotion Lasts Through October
September 28, 2014, 8:32 AM
Update: Apple Releases iOS 8.0.2 Update to Make Up for Botched 8.0.1 Release
September 25, 2014, 8:19 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information