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T-Mobile's CEO ranted about the plan on Twitter

With three out of four of the major U.S. wireless carriers rolling out upgrade plans, there was bound to be some heated competition -- and even an exchange of words. 

T-Mobile CEO John Legere bashed AT&T's "Next" upgrade plan on Twitter several times over the last 24 hours, claiming that T-Mobile's "Jump!" upgrade plan is cheaper and better for consumers. Here are some of the tweets, starting from oldest to newest:

Last week, T-Mobile launched its new "Jump!" program, which lets customers upgrade every six months for an extra $10 fee each month on top of their regular, monthly wireless charges. However, it differs from the "Next" plan in that it applies to only smartphones, not tablets. Also, customers have to pay the $10 monthly fee unlike AT&T, which doesn't require an activation fee or down-payment for using its plan, but does make customers pay the remaining months’ fees. 

Earlier this week, AT&T announced its "Next" plan, which will allow customers trade in their smartphones and tablets every 12 months on a post-paid basis -- meaning they pay a monthly fee on top of their regular AT&T plan based on a 20-month cycle.

For example, if a customer were to get a new smartphone or tablet, the retail cost of the device would be divided by 20. That number would then be added to the monthly bill on top of the traditional or family-share AT&T plan. In 12 months, the customer can upgrade to a new device and start the process over again. 

The "Next" plan won't lay any extra fees on the customer other than the retail price divided by 20, but customers will be forced to pay the remaining months’ fees. You can expect to see it roll out on July 26. 

T-Mobile and AT&T aren't alone in offering new upgrade plans. Verizon is planning a big reveal of the "VZ Edge" plan, which will reportedly allow customers to upgrade to new devices as soon as they pay off 50 percent of their current smartphone. 

Source: Phandroid

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RE: How to fix the cellphone industry.
By Red Storm on 7/17/2013 12:26:38 PM , Rating: 3
To be fair, if you walked into a carrier store and paid for a phone as you said, then you wouldn't be tied to a contract. That's for subsidized phones.

But I agree with you, unfortunately it's just wishful thinking, I don't see it ever happening.

RE: How to fix the cellphone industry.
By Motoman on 7/17/2013 1:12:55 PM , Rating: 4
Yes, and I'm saying there should be no option at all for a subsidized phone plan, and/or long-term contracts.

If you want a phone and find that you can't afford to pay it's full price at once, USE A CREDIT CARD. Or maybe, *gasp*, buy a phone you can actually afford.

Vast herds of consumers literally have no idea what they're actually paying for a cellphone. They honestly think they paid $99 for their latest iThing, since that's what the initial payment was.

If they actually were confronted with the *actual* cost of the cellphone they want to buy, and then realize they're considering carrying around a $600 device that they're prone to drop, sit on, and forget somewhere...maybe they'll reconsider. And at some point, maybe the manufacturers will switch from using advancing technology to perpetually increase the cost of cellphones by stuffing more crap in them that doesn't help 99% of the population, and instead use technological advances to simply decrease the cost of cellphones over time, granted that we're already at a point where any given smartphone is likely to provide vastly more functionality and capability than the vast majority of users would ever care to do, or even want to know about.

RE: How to fix the cellphone industry.
By crimson117 on 7/17/2013 1:30:59 PM , Rating: 2
Or instead of using a credit card, phone retailers could offer 2-year no-interest or low-interest financing, like they do in europe.

By Rukkian on 7/17/2013 2:03:53 PM , Rating: 2
Or instead of using a credit card, phone retailers could offer 2-year no-interest or low-interest financing, like they do in europe.

Isn't this exactly what they are rolling out with this?

As for double dipping, yes they are, but you did get the last phone to do with what you want. At this point, it just shows the actual difference in cost of service is around 30-40$/month from Tmobile to everybody else. Just wish they had coverage more than 2 miles from my house, or for my way to work.

By Bateluer on 7/17/2013 4:24:23 PM , Rating: 2
This is exactly what TMO does with their uncarrier plans.

RE: How to fix the cellphone industry.
By Mint on 7/18/2013 11:25:51 AM , Rating: 2
Yes, and I'm saying there should be no option at all for a subsidized phone plan, and/or long-term contracts.
Yeah, but that eliminating an option from the marketplace. I don't think that would fly.

What we really need is a consumer protection law where all fixed-term contracts are required to print in a large font "TOTAL CONTRACTUAL OBLIGATION" and "MAXIMUM TERMINATION FEE". So when Verizon sells you a $200 iPhone on a two year contract with a $100/mo plan, you see $2600 in bold.

The problem is not financing options. The problem is duping people into committing to things they aren't aware of.

RE: How to fix the cellphone industry.
By rountad on 7/18/2013 1:11:46 PM , Rating: 3
I'm not defending AT&T because I think that they are scumbags, but how difficult is $200 + ($100 x 24) to determine?

I do agree that the numbers should be laid out clearly and not buried in a mound of legalese.

By sorry dog on 7/18/2013 2:16:46 PM , Rating: 2
Not hard at all.

But the truth of the matter is that if you see a $2600 dollar bold print figure and $800 termination fee, then they might think a little harder about what they can afford and how much that shiny Iphone 7 really costs.

Then after they think about it twice, they will probably still pay the 30% premium because your not cool if your phone doesn't have I in the name....but at least they got screwed over on the up and up.

By alpha754293 on 7/18/2013 10:43:38 AM , Rating: 2
While I can't speak for their carrier speeds or reliablity etc., but you CAN do that already with Virgin Mobile USA. Buy the phone outright, and then for example, the cheapest iPhone plan is $35/month a month (300 minutes, unlimited data). No contract.

That's EXACTLY what you're talking about.

Now, if you don't like the carrier for whatever reason, can't help you with that. (You can also go with like MetroPCS which I think has like $40/month plans which is advertised (IIRC) as unlimited everything (I think - I dunno, I never checked/looked into it.))

So it can be done already. And back when landlines were still owned by a majority of households, you were pretty much stuck with one carrier anyways, so if that carrier sucked, there wasn't much that you could have done about that back then either.

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