T-Mobile 'Jump' Plan to Require Customers to Pay 50% of Device Cost Before Upgrading

MacRumors · Feb 14, 2014

T-Mobile is planning to implement some changes to its "Jump" early upgrade program, according to TmoNews. The company has plans to nix the six month waiting period and eliminate limits on how often customers can upgrade their devices, but there's a caveat - under the new terms, customers must pay off 50% of their existing device costs before being allowed to upgrade. As with the existing program, device trade-in is also required.

Previously, customers could upgrade their phone twice per year after a six month waiting period, without a specific number of payments made on a device. T-Mobile would then cover the cost of the remaining payments, whereas now, the company will only cover 50% of the cost as outlined by a T-Mobile representative.

Whenever you're ready to upgrade, trade in your device and T-Mobile will pay your remaining device payments up to 50% of the device cost. There is no more waiting period or limit to the number of times you can upgrade per year.

For the entry-level 16GB iPhone 5s, a T-Mobile customer must pay either $648 or $27 a month with a $0 downpayment. Under the existing program, a customer could initially upgrade to a new phone after six months of payments, or $162. A subsequent, second yearly update could be even cheaper for the customer depending on the gap between updates.

Under the plan's new terms, customers will only be able to upgrade their phones after paying half of the cost of the iPhone 5s, or $324, the equivalent of 12 payments. To upgrade more frequently than once a year, customers will need to shell out additional cash to reach 50% of the device cost.

T-Mobile is allowing current Jump customers to be grandfathered in to the existing plan, which means they will be able to upgrade before paying off half of the device costs.

Along with implementing some changes to the way Jump works, T-Mobile is also adding tablets to the plan.

The changes to Jump will go into effect on February 23.

Article Link: T-Mobile 'Jump' Plan to Require Customers to Pay 50% of Device Cost Before Upgrading

ashwin4 · Feb 14, 2014

Much better than At&t and Verizon's next and edge programs which are straight up robbery

theheadguy · Feb 14, 2014

I thought their initial plan was unsustainable. But, kudos to them for doing it. They did the opposite of gouging customers for every single dollar they have, unlike ATT and Verizon. Even with this new change, the program is still very reasonable.

bookwormsy · Feb 14, 2014

Well, that makes this almost worthless. If I have to pay off half of the phone before upgrading, why pay the extra 10 bucks a month when I could just go onto Craigslist or eBay or Swappa or something and sell it?

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ashwin4 said:
Much better than At&t and Verizon's next and edge programs which are straight up robbery

Isn't this basically like Next and Edge now? Edge says you can upgrade when 50% is paid off, and with Next, you upgrade after 12/18 months (for 20mo and 26 month plan, respectively).

aristobrat · Feb 14, 2014

ashwin4 said:
Much better than At&t and Verizon's next and edge programs which are straight up robbery

How is that any different from Verizon's program?

After 30 days, with at least 50% of your phones price paid off, youre eligible to upgrade - faster than with any other carrier.

http://www.verizonwireless.com/wcms/consumer/devices/edge.html

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bookwormsy said:
Isn't this basically like Next and Edge now? Edge says you can upgrade when 50% is paid off, and with Next, you upgrade after 12/18 months (for 20mo and 26 month plan, respectively).

To me, AT&T's Next is different because they don't divide the phone into 24 monthly payments, ... they divide it into 20 monthly payments, and you can't upgrade until after month 12.

That means AT&T makes you pay off 60% of the phone before you can upgrade, and I don't see where you can pay extra to do it earlier than month 12.

spyguy10709 · Feb 14, 2014

This is really really bad for frequent upgraders. Whereas you could just pay for 1/4 of a device if you kept it for 6 months, and keep upgrading, you'll have to pay for 1/2 of the device any way you look at it now. Flagship smartphones don't depreciate that fast on the open market, as you can see on eBay and Amazon, phones launched 6 months ago are worth well more than 50% of the original price. Even phones a year old are worth more than 50% of their original value. This turns what was a fair deal into a stupid one.

Well, T-Mo must be giving up on the whole uncarrier thing. This is exactly like AT&T and Veri$on's plans.

Spock · Feb 14, 2014

I'm currently on the Jump program and I'm going to use it to get a 5s next month. What does being "grandfathered" mean? Will I have to pay 50% of the iPhone 5s before I can upgrade to a iPhone 6? If that's the case, I'll buy the unlocked iPhone 6 direct from Apple with my credit card and save the $10 a month I pay to T-Mobile for the Jump program.

SR71 · Feb 14, 2014

Spock said:
I'm currently on the Jump program and I'm going to use it to get a 5s next month. What does being "grandfathered" mean? Will I have to pay 50% of the iPhone 5s before I can upgrade to a iPhone 6? If that's the case, I'll buy the unlocked iPhone 6 direct from Apple with my credit card and save the $10 a month I pay to T-Mobile for the Jump program.

Grandfathered means that if you're currently on the JUMP program, your terms will not change. As long as you keep the JUMP program on your line, you'll be able to upgrade every 6 months as per the old terms.

69Mustang · Feb 14, 2014

spyguy10709 said:
This is really really bad for frequent upgraders. Whereas you could just pay for 1/4 of a device if you kept it for 6 months, and keep upgrading, you'll have to pay for 1/2 of the device any way you look at it now. Flagship smartphones don't depreciate that fast on the open market, as you can see on eBay and Amazon, phones launched 6 months ago are worth well more than 50% of the original price. Even phones a year old are worth more than 50% of their original value. This turns what was a fair deal into a stupid one.

Well, T-Mo must be giving up on the whole uncarrier thing. This is exactly like AT&T and Veri$on's plans.

Apparently someone in Accounting at TMobile informed management that 6 months and 1/4 of device cost was unsustainable if they wanted to remain in business. Just spitballing, but they would have needed AT&T/Verizon to double their churn rate to break even over time. Even on that, all the churn would have to go to TMo.

Regardless, I think we still owe TMo a hat tip for getting the others to get off their butts and make the market more competitive.

WhoDaKat · Feb 14, 2014

The rub here is that you have to turn in your old device. On my family plan, with 3 iPhones, I can make a lot more money selling them on eBay or even to Gazelle and then paying off the contract myself. I'm sure T MO would be glad to take $1000 worth of phones and pay off your $350 early termination fee.

Rocco83 · Feb 14, 2014

spyguy10709 said:
This is really really bad for frequent upgraders. Whereas you could just pay for 1/4 of a device if you kept it for 6 months, and keep upgrading, you'll have to pay for 1/2 of the device any way you look at it now. Flagship smartphones don't depreciate that fast on the open market, as you can see on eBay and Amazon, phones launched 6 months ago are worth well more than 50% of the original price. Even phones a year old are worth more than 50% of their original value. This turns what was a fair deal into a stupid one.

Well, T-Mo must be giving up on the whole uncarrier thing. This is exactly like AT&T and Veri$on's plans.

How did it turn a fair deal into a stupid one? This is still a fairly good deal in comparison to what is out there. I guess with every decision there are going to be those who whine because they don't get everything for free.

Paying 50% of a phone's cost to shut it off early when the phone is still worth that is a bad deal to you? Seem fair to me. I usually buy the top end iPhone each iteration and then sell it for about half value after upgrading to the new one each time.

There is no way Tmo could have sustained their original Jump plan, and even with the change it seems a pretty decent deal.

MrXiro · Feb 14, 2014

I never liked the Jump program to begin with... I went into an Official T-Mo store to pick up a 5S and they tried to force it on me and I walked. Went to another one (reseller) and told them straight up that I refuse Jump and would walk if they put me on it.

Anyway... on the previous JUMP plan, you were better off buying the phone and selling it on Craigslist 11 months later.
Essentially you're dropping $37 a month (27 for iPhone and 10 for Jump) which equals out to $407 in 11 months. Just to give the phone back to them... or you could sell it for around 450-500 if you time it right. $715 (CA tax is $65 + $650) - 500 = $215 so you're not out nearly as much as giving them the phone back.

Don't like any of these "programs" at all.

It's even worse now as you'll need to pay X amount of months at $10 + $325. Going by 11 months again it's now $435 to upgrade after 11 months.

Blah, why waste my time?

TXCherokee · Feb 14, 2014

Why is this program even needed?

I'm on T-Mobile (I took advantage of their switch plan to pay off my EFT and left Verizon). The main reason I switched was to separate the phone cost from the service cost. I own both my iPhones, so my question is this:

What's to stop me from buying new phones whenever I want? Why would I pay TMo $10 a month to 'upgrade early' when, as far as I understand, I'm only paying for service and can upgrade whenever I feel like it?

doboy · Feb 14, 2014

Rocco83 said:
Paying 50% of a phone's cost to shut it off early when the phone is still worth that is a bad deal to you? Seem fair to me. I usually buy the top end iPhone each iteration and then sell it for about half value after upgrading to the new one each time.

But you are also paying $10 more per month for the Jump and you can usually get more than 50% for less than 1 year old iPhone.

Rocco83 said:
There is no way Tmo could have sustained their original Jump plan, and even with the change it seems a pretty decent deal.

I agree that the initial program was probably unsustainable.

RotaryP7 · Feb 14, 2014

bookwormsy said:
Well, that makes this almost worthless. If I have to pay off half of the phone before upgrading, why pay the extra 10 bucks a month when I could just go onto Craigslist or eBay or Swappa or something and sell it?[COLOR="#808080"[/QUOTE]

Jump also includes insurance for $10. It's still a better option than AT&T and Verizon.[COLOR="#808080"]

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[/COLOR]

TXCherokee said:

I'm on T-Mobile (I took advantage of their switch plan to pay off my EFT and left Verizon). The main reason I switched was to separate the phone cost from the service cost. I own both my iPhones, so my question is this:

What's to stop me from buying new phones whenever I want? Why would I pay TMo $10 a month to 'upgrade early' when, as far as I understand, I'm only paying for service and can upgrade whenever I feel like it?

Click to expand...

You can upgrade whenever you want, if you pay off your phone. Or if you currently have Jump, wait 6 months.

bearda · Feb 14, 2014

TXCherokee said:
I'm on T-Mobile (I took advantage of their switch plan to pay off my EFT and left Verizon). The main reason I switched was to separate the phone cost from the service cost. I own both my iPhones, so my question is this:

What's to stop me from buying new phones whenever I want? Why would I pay TMo $10 a month to 'upgrade early' when, as far as I understand, I'm only paying for service and can upgrade whenever I feel like it?

Most people aren't just paying for service. They're also paying for a device spread over 2 years. If you own your own phone there's not reason to do JUMP, and in fact you're ineligible. It only comes into effect when you have a device payment plan with a balance. In that case you can turn in the old phone and wipe out the remaining balance.

NT1440 · Feb 14, 2014

I'd say in a perfect world we wouldn't encourage this ridiculous "gotta have a new one every time a new one comes out" mindset, but you know....profits.

I'm not against upgrading, but damn, the smartphone market has matured to the point where there really isn't a night and day "gotta have it" difference between devices each year.

cmwade77 · Feb 14, 2014

I always find it amazing when people talk about the Jump plan, they ignore the fact that the $10 per month is also the insurance on the phone. If it is lost or stolen, you pay the deductible to have it replaced. If it is broken, T-Mobile can replace your phone in the store if you are on the Jump plan in most cases. If they can't, the phone is replaced free of charge by mail.

EW800 · Feb 14, 2014

Can anyone tell me what I am missing here, or if I may be correct? Perhaps the old TMo plan of upgrading after six months (with likely just 25% of the phone payed for) was indeed unsustainable, however isn't this new plan, and that of say Verizon Edge, basically robbery without a gun?

Perhaps if a person upgrades right at the one year (then 50% mark as far as paying for the phone) is not too horrible - perhaps it is the price you pay for having to have the latest and greatest, but if you for any reason wait any longer than 12 months, then it is pretty close to consensual robbery. If a person for whatever reason waits until month 15, 18 or worse close to month 24 when the phone is fully or nearly paid for, then you are taking a phone that you perhaps paid $650 or more for and handing it to the carrier - and you get to start all over with a new phone!

AND, if the phone that you already paid for and turn into the carrier is not in real good condition, then you get to pay even more to cover that!

It seems to me that all of these deals are pretty much just VERY expensive rental programs - or am I missing something??

Thanks!

ladeer · Feb 14, 2014

[deleted]

EW800 · Feb 14, 2014

ladeer said:
Carriers don't just come up with cheap plans. They are best at coming up with plans that look cheap but down the road grab you by the balls.

Exactly!!

869639 · Feb 14, 2014

At the end of the day, there is no way for T-Mobile to offer this "Unlimited" JuMP program without requiring customers to pay 50% of the phones value....you got to understand that carrier's cannot take losses for customers "wants" rather than "needs".

It makes perfect sense and at the end of the day T-mobile is not forcing you to upgrade every few months, but should you wish to....well you now have options if you are willing to pay for your "habit" of wanting a new phones every x amount of time [Which I think is crazy for most people....].

Also I'm sure the rules remain the same should the customer keep it for 12months....as for 18months...one would have to be an idiot to give in their smartphone [Esp If its an iPhone] to the carrier rather than making the last few payments......because you are basically throwing away money to get the latest and greatest when one can just sell the device on Craigslist or eBay or Swappa and make way more.

So it really comes to the customer...how smart they are in making the absolute best decisions.

kerrikins · Feb 14, 2014

ITT: people who are used to buying and selling phones on Craigslist and Ebay, otherwise known as the people who are NOT the target of this program.

Seriously, upgrading in itself is not designed for the tech-savvy, cost conscious consumer who is willing to buy their phones outright and sell them privately to get the best bang for their buck. Upgrading is designed for the people who either can't or don't want to pay for the device up front and/or don't want to resort to Craigslist or Ebay.

If you're sitting there thinking about how you can sell your phone yourself and make more money, this isn't aimed at you. All it takes is a glance at the market in Canada and the US to realise that there are millions of people out there who would rather just renew their contract to get a discounted phone, and they like being able to trade their device in through their carrier to do it.

macduke · Feb 14, 2014

Between all of these new confusing plans coming out from carriers, I just can't wait to see what they look like in 10 years:

Just trade in your next phone towards the purchase of your previous phone, pay 37% the fair market value on the regulated Phone.prices site, divide the amount of data that you want by your region code to compute your monthly payment. If you prepay the taxes on your current phone that you pay for on your next upgrade, then you get an 11% discount off any extra lines that you add to your ring of circles. You get 1.5 circles per line, up to 7. If today is a Thursday, add a $57.10 processing fee. If you purchase more than 3 devices, pay a 13% electromagnetic environmental protection fee. If upgrading from 5G to 6G service, take the number of circles you have times $42 and only pay 31% fair market value for your device.

Don't forget to add ridiculous names to each plan and constantly point out how much money they're (not) saving now.

dampfnudel · Feb 14, 2014

Looks like T-Mobile may be paving the way for SoftBank/Sprint to take over. I better hurry up and switch from Verizon to T-Mobile while I still can get some value there.

T-Mobile 'Jump' Plan to Require Customers to Pay 50% of Device Cost Before Upgrading

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