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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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RE: Exactly!!!
By mcnabney on 12/7/2012 10:56:34 PM , Rating: 2
Buyers want it more.

T-mobile has had discounted, contract-free service for a long time. And they have lost hundreds of thousands of customers every quarter. If customer's really valued it, T-mobile would be gaining customers. People might gripe about contracts, but they like getting expensive devices for cheap more.


RE: Exactly!!!
By Rukkian on 12/10/2012 10:20:41 AM , Rating: 2
I don't see how the unsub phones had anything to do with their subscribers as they have also had subsidized if you wanted them. While it was easier to see the difference (monthly price difference) I don't see how that would turn somebody off to have options.

Not having the iphone, having poor coverage in numerous areas, not have 4G lte, and possibly going under to me are the reasons for the low subscribers.


"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner

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