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John Legere  (Source: businessweek.com)
T-Mobile is the last of the major U.S. carriers to join the iPhone bandwagon

T-Mobile USA's CEO said that the company will finally begin selling the iPhone and eliminate cell phone subsidies in about three to four months.

"They're all, I would call them, in three to four months as opposed to six to nine months," said John Legere, T-Mobile USA CEO.

Last year, T-Mobile said it would try to bring in more customers from rivals by offering the iPhone and cutting cell phone subsidies in 2013. By eliminating these cell phone subsidies, customers can enjoy lower service prices and more flexibility (meaning that customers will pay the entire purchase price of the phone right off the bat instead of getting a discount in exchange for a two-year contract).

Meanwhile, rivals like Verizon and AT&T still depend on subsidizing cell phones to give device discounts while pulling customers into two-year contracts.

"If the old industry structure chooses to ignore what we do, that's a potential," said Legere.

T-Mobile is the last of the four major U.S. carriers to sell the iPhone. AT&T was the first carrier to sell Apple's smartphone when it was released in 2007. In early 2011, Verizon finally got its hands on the iPhone as well, and later that year, Sprint started selling the iPhone 4 and 4S with unlimited plans (which was a competitive edge, considering AT&T and Verizon had both nixed their unlimited data plans for tiered packages).

T-Mobile is now moving along with its introduction of the iPhone as well, and seeks a competitive edge of its own with the elimination of cell phone subsidies.

T-Mobile also has a few other tricks up its sleeve, such as a possible merger with MetroPCS. The companies are currently seeking approval.

Source: Reuters



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RE: Phone prices
By KOOLTIME on 1/9/2013 6:23:53 PM , Rating: 3
Incorrect,

Subsidies have nothing to do with your monthly phone bill.

All vendors use IPhone and other brands, its the monthly service contract

they want to make sure they keep YOU paying THEM.

Telco companies could care less what brand of phone a person uses. Since they dont manufacture them, all they get is a % commission for the device to access their networks. Other then that its the monthly recurring bill they charge, why they love 2 year contracts, due it keeps customers in check even if services is terrible.


RE: Phone prices
By SpartanJet on 1/9/2013 7:28:54 PM , Rating: 2
LOL its not incorrect, it is correct you do save money.


RE: Phone prices
By Cheesew1z69 on 1/10/13, Rating: 0
RE: Phone prices
By AEvangel on 1/10/2013 10:47:32 AM , Rating: 3
quote:
So, you are trying to say, someone like Verizon, if you buy it outright, that you save money? Bullshit, the bill is going to be the same as if you didn't buy it outright. That is not saving money.


No he is right if you buy a PREPAID plan rather then a 24 month contract plan with a subsidized phone you will end up playing on average of $15 to $25 a month less, which is about the cost of the phone.

The side benefit is that you can now upgrade your phone and or change your plan whenever you like.


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