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T-Mobile to cut phone subsidies

M

mogelijk

Android Expert
T-Mobile announced that they are going to end phone subsidies and, instead, concentrate on lowering the prices of their plans. No date was given for the end of the subsidies, only that it would happen in 2013.

In some ways this seems like a gutsy move by T-Mobile and it will be interesting to see how it impacts business (and their plan prices). OTOH, the article states that about 80% of new customers are signing up for plans that don't include subsidies (either the Value or Monthly plans).
 
Well it should be interesting, and maybe they are on to something, but I know that I couldn't afford to buy these smartphones at full price. I'm thinking I am not alone here.
 
It's a decent idea, and it's something that works everyone else in the world. The problem is that they're the 4th largest, not the largest carrier in the US, and the average consumer is willing to subject themselves to being taken advantage of by the carriers just to save a few bucks upfront. It's also not like Verizon/AT&T/Sprint over discounts for buying devices at full retail, so financially it doesn't make sense to do so if you know you want to be on a particular carrier for sure.
 
damewolf13 said:
Well it should be interesting, and maybe they are on to something, but I know that I couldn't afford to buy these smartphones at full price. I'm thinking I am not alone here.
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My guess is they will operate it similarly as the do today with the value plans. While they won't subsidize phones, they will allow you to buy your phone on credit.

jhawkkw said:
It's a decent idea, and it's something that works everyone else in the world. The problem is that they're the 4th largest, not the largest carrier in the US, and the average consumer is willing to subject themselves to being taken advantage of by the carriers just to save a few bucks upfront. It's also not like Verizon/AT&T/Sprint over discounts for buying devices at full retail, so financially it doesn't make sense to do so if you know you want to be on a particular carrier for sure.
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I think that being fourth largest may be part of the reason they will do it, it will help show a difference between them and other carriers. It will also help make their plan costs look even cheaper against the other three major carriers. While I'll agree that I'm skeptical about how well it will work, the article does state that 80% of their new activations are plans without subsidies.
 
Well... it should all balance out in the end.. after all it wasn't t-mobile who were paying the subsidy out of there own pocket. They passed the cost straight on to you with your monthly fee.
 
I also don't think it will hurt much anyways because T-Mobile never subsidized the phone by the same amount that the other major carriers did. Either way, I think that I will probably be a customer of theirs once my Verizon contract runs up at the end of next year with a nexus 5.
 
jhawkkw said:
I also don't think it will hurt much anyways because TMobile never subsidized the phone by the same amount that the other major carriers did.
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Not true. They are great to existing customers. I paid something lke $150 (total) for 2 galaxy s 3s on day.

Very interested to see how the numbers wind up. Could be disruptive.
 
damewolf13 said:
Well it should be interesting, and maybe they are on to something, but I know that I couldn't afford to buy these smartphones at full price. I'm thinking I am not alone here.
Click to expand...

You don't pay full price for the phone. You can if you choose. But what they do is make you pay a small amount upfront, usually $100 or $200 like any other carrier, or even free some times, and then you make monthly payments for the phone every month on your bill.. So you end up paying the same amount, you just see where your money is going. Also once your payments are done, you can pay less since it's your bill without the phone payment.
 
They will let you pay for the full retail priced phone monthly with no interest. It's really no different, cost-wise, than a post paid account but you get to upgrade to a new phone whenever you want to instead of waiting 2 years for an upgrade when your contract is over.
 
The way I think of getting your own phone is this:

Get it off ebay. It is about 20% less. Use it for 1 year. I loose about 40% of the value. Sell it, and get another new phone.

I loose about $150 a year. Its just something you have to pay.
 
thebryceee said:
They will let you pay for the full retail priced phone monthly with no interest. It's really no different, cost-wise, than a post paid account but you get to upgrade to a new phone whenever you want to instead of waiting 2 years for an upgrade when your contract is over.
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No contract means no bondage. Its just a good thing to be free.
 
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