T-Mobile USA to Cease Offering Subsidized Device Pricing Options in 2013

T-Mobile Value Plan

tekmoe said:

I have been with T-Mobile for years and this does not surprise me. I bought my Note 2 at retail so that I could use it on the value plan. Ended up getting 500 whenever minutes, 2GB 4G data and unlimited 3G data, unlimited txt, unlimited nights/weekends for $49/mo plus tax. With the way they are pushing their new phones, it seemed inevitable that they would ditch the classic plan. Subsidized pricing is so last decade.

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I just switched to T-Mobile with my 4S. I get 3G in Chicago now. It's not the most consistent, but I lowered my bill by 40%, so I'll deal with it. It still feels surreal getting 3G speeds with an iPhone on T-Mobile's network.

T-Mobile Value Plan : 500 minutes $35, Unlimited Text $5, 2GB data (unlimited edge) $10
= $50/month (2 year contract)
My old AT&T plan: 450 minutes $40, unlimited text $20, 2GB data $25 (no longer available)
= $85/month (2 year contract)

Bottom line: consumers now have more OPTIONS.
The upgrade every 20 months + sell on ebay/Craigslist cycle wasn't cutting it for me anymore. But I'm glad there are new alternatives.

*Also note that no-contract plans are $10 more per month than the individual Value Plans. I just decided to agree to 2 years to save an additional $10/month.

AppleScruff1 said:

Sprint's unlimited data didn't shake anything up. And this move by T-Mobile probably won't either.

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Won't for me, unless VZW starts throttling my unlimited. Or kills it or whatever.

I think the big impact here is what it will do to the handset market. Right now at the end of a 2 year contract, the customer can unlock their phone and resell it for, say, $300 (usually to a t mobile user since they need unlocked device) and then buy the newest model for$200. The user gets the newest phone and $100 in his pocket.

But if this model changes, would people upgrade as often? I sure don't replace other technology (computer, stereo, tv) every 2 years.

Nevertheless, it's good for consumers but possibly bad for handset makers because 1) so few consider total cost of ownership and 2) customers less likely to upgrade as detailed above

quagmire said:

They should give customers options.

Subsidized phones, but pay higher monthly rates.

Unsubsidized phones, and pay lower monthly rates.

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So EXACTLY what they are doing right now?

I don't get why everyone is so excited over this because you always had that option to pay a lower monthly rate, now they are just taking away an option.

Though I really would love it if phones had to directly compete with each other along with cellphone services, none of these contracts and carrier exclusive phones.

bboyredcel said:

sounds awesome. makes me actually want to consider t-mobile.

too bad i <3 my straight talk.

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is straight talk good ? better service?

http://news.cnet.com/8301-1035_3-57394034-94/t-mobile-exec-subsidies-are-hurting-wireless-industry/
T-Mobile exec: Subsidies are hurting wireless industry

http://www.neptunemobile.com/2012/12/telefonica-exec-warns-t-mobile-over-dropping-subsidies/

There’s been no shortage of detractors over T-Mobile’s risky decision to move to a Value Plan only world in 2013. Now, Tracy Isacke, director of Telefonica Digital, a large Spanish multinational telecommunications company with more than 313 million customers worldwide is advising T-Mobile not to go down this path.

Isacke suggests taking it from experience as Telefonica decided to undertake the same move earlier this year with less than favorable results. In September of this year alone, Telefonica lost 253,520 mobile users as Vodafone, another large European operator (part owner of Verizon/Wireless) is also seeing negative results from the removal of subsidies.

hudson1 said:

How much are your text messages?

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Sorry for the late reply, the $18/month I mentioned includes unlimited texts(within the UK).

http://news.yahoo.com/why-dropping-phone-subsidies-could-put-t-mobile-163529858.html
Why dropping phone subsidies could put T-Mobile in jeopardy

Sprint drops subsidy in their new "Framily Plan"





The plans do not have a two-year contract or offer a device subsidy, so unless you want to use Sprint’s One-Up annual trade-in plan, you have to pay full retail price for your phone. Users who have the unlimited data add-on will also be able to do a device trade-in after one year.

The plans will be available to both new and existing customers starting on January 10th. Current customers that are on a traditional Sprint plan with a contract can sign up for the new Framily plan, but there will be a $15 per month surcharge until their contract is satisfied.