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.
7/18/2013 1:12:52 AM
How to fix the cellphone industry by Motoman:
-First, raise the price of the smartphone to $650.
-Then, in case anyone still wants to buy it, sell the phone and the cell phone service in two different physical locations, making them even harder to buy.
-Finally, stop offering contracts, which bring the cell provider anywhere from $1200-1700 per signup every 2 years.
All joking aside, I think you have the right idea. You just stated it in a way that sounds very impractical.
My friend does something similar with the Nexus 4 and Koodo (canadian provider). He walked into Koodo and got a Nexus 4 for $0 (he could have chosen to pay *any amount* between $0-300), on a $40 plan with no contract and no hidden fees. He owes the provider $300, they decrease it by $4 every time he pays his bill ($48/year) and he can pay it back whenever he wants. I think this is the best way.
For this model to work, phone prices have got to come down. No more 70% margins.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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