Print 44 comment(s) - last by Piiman.. on Jul 27 at 2:24 PM

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 MrBlastman on 7/17/2013 5:15:58 PM , Rating: 2
Should and are are two different concepts. How do you propose making this occur? Through regulations? Or are you speaking purely from an idealistic, conceptual point of view?

Idealistically I agree with you. They shouldn't exist, nor should lots of things in the pay-as-you consume digitial playground. The problem is people will buy them, so they are.

Unless some sort of law is written or regulatory body is imposed, I don't see it changing any time soon--unless, of course, a less-costly alternative is implemented. That's the impetus of all of this... cost and ease of acquisition.

I hate the whole phone game. I think it sucks. It exists the way it does though because the primary carriers who own the towers and equipment fight tooth and nail over maintaining control of it, much like they did back in the day when we relied on copper wire for everything. To do this it requires money and the best way to fleece money from the consumer is to disguise in a way they can never tell they're being robbed. Thus, you have these ridiculous offers and contracts.

The handset makers like the contracts because it increases revenue and helps give them free advertising (through the provider's store and clerks). They also can force in some instances the provider to pay them a ransom in order to market their product. The entire system is screwed up.

So beyond being idealistic as we both would like to end all of these shenanigans, what exactly would you do to stop this, realistically speaking (other than competition)?

RE: How to fix the cellphone industry.
By Motoman on 7/17/2013 6:02:19 PM , Rating: 2
I'd honestly vote for industry regulation. Knock it off with the shenanigans. Sell phones. Provide service. Period.

There's no reason in any possible universe why it shouldn't be that way.

By bigboxes on 7/17/2013 8:14:02 PM , Rating: 2
Again, I agree with you 100% on this front. There should be regulations that stop this anti-competitive behavior. There is no reason they can't offer all the required bands on one chip these days. You buy the phone at retailers that compete to offer you the best price/warranty and you then choose a provider that gives you the best price/service/customer service. Can't compete? Then get out of business. I'm tired of the industry lobbying to continue their anti-competitive behavior. The same with cable/satellite tv/internet providers.

RE: How to fix the cellphone industry.
By Reclaimer77 on 7/18/2013 12:55:32 AM , Rating: 2
I'd honestly vote for industry regulation.

On what grounds? The usual "I'm Moto and issue X should work the way I think it should"?

Calling for added regulation on an industry that's doing nothing essentially wrong, and is able to meet the needs of millions of consumers in an ever-growing field? That's just insanity.

You can't just snap your fingers and make everything work the way you think it should. Especially if you're calling for more Government claptrap. We have way too much of that already! Government is not the answer. If you want someone to blame for the current situation look no further than those around you, if you MUST blame someone.

RE: How to fix the cellphone industry.
By croc on 7/18/2013 3:18:17 AM , Rating: 2
Although I no longer live in the US, I still vote. So I do try to keep up with the issues. One issue that I do pay some attention to is the amount of monopoly / duopoly positions that are currently developing, especially in the communications field. Given that in many areas there is a LEGISLATED monopoly / duopoly, I see no reason for it not to also be REGULATED. However, I suppose that you are willing to once again let your conservative values bite your pocketbook in half. Gods... The rich boys must really have fun with you, toting their water and all...

By sleepeeg3 on 7/18/2013 9:48:31 AM , Rating: 2
Regulation costs money. The invisible hand always finds a way around it, at the expense of the consumer. Despite regulation, we have prepaid plans, because the smaller carriers brought them out and the larger carriers brought out competing plans (i.e. GoPhones and AIO). Go figure.

By retrospooty on 7/18/2013 7:50:02 AM , Rating: 2
"On what grounds? The usual "I'm Moto and issue X should work the way I think it should"?"

LOL... But in his defense, most of his "ideal scenarios" would be really nice. Too bad the world is completely nuts and his ideals aren't realistic given the world's relentless insanity.

By karimtemple on 7/18/2013 8:39:49 AM , Rating: 2
If I was making an action cartoon for children, the main villain would be like a reverse He-Man who would raise his sword and yell "THERE OUGHT TO BE A LAW!!®" He'd become imbued with evil society-destroying energy.

Here's how the rest of my day goes step-by-step, after reading your post:

1) Laugh to myself. "Thank God you're not in office!"
2) Reflect on the actual state of American politics.
3) Realize people like you ARE in office.
4) Weep deeply, alone.
5) Illicit substances as a coping mechanism.

"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer

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