T-Mobile CEO Insults AT&T's New "Next" Upgrade Plan
July 17, 2013 11:06 AM
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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
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.
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RE: How to fix the cellphone industry.
7/17/2013 8:14:02 PM
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.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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