Carrier Do you want AT&T, Verizon and Sprint to adopt T-Mobile uncarrier strategy?

[Applefan17]

I personally wouldn't want my carrier (AT&T) to adopt this system. For some, it is a liberating feeling to not be locked down to a carrier and getting to upgrade your phone as much as you want. I personally am just fine with the upgrade every two years and even if I had wanted to upgrade my iPhone more often I would most likely just use the double account that gives you an update every year by doing one line at a time.

I just feel having the un-carrier system would make things a lot less streamlined, it's actually the reason I recently went with AT&T as apposed to T-Mobile recently. Just the idea of having to buy the phone either outright, or using a monthly payment system to pay for the device is a bit of a turn-off.

 

[QCassidy352]

I personally wouldn't want my carrier (AT&T) to adopt this system. For some, it is a liberating feeling to not be locked down to a carrier and getting to upgrade your phone as much as you want. I personally am just fine with the upgrade every two years and even if I had wanted to upgrade my iPhone more often I would most likely just use the double account that gives you an update every year by doing one line at a time.

I just feel having the un-carrier system would make things a lot less streamlined, it's actually the reason I recently went with AT&T as apposed to T-Mobile recently. Just the idea of having to buy the phone either outright, or using a monthly payment system to pay for the device is a bit of a turn-off.

but paying for the device monthly is basically what ATT does -- they just keep charging you for it after it's been paid off (by not lowering the monthly rate). Just goes by a different name.

 

[Applejuiced]

I usually just call in and ask every 6 months or so and they have been letting me. Never said no.

Yeah, and I'm George Bush...

 

[2298754]

Yeah, and I'm George Bush...

I upgraded to a Galaxy S2 Skyrocket in November 2011. Since then I've upgraded to an S3 and now a Note 2 on the same line. I'm taking a different line's upgrade for the S4. I will call once again in the Fall when the next iPhone comes to upgrade my primary line (the one I used for the Note 2).

So yeah, if they think you're a loyal customer (almost 14 years here), they'll let you upgrade.

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I personally wouldn't want my carrier (AT&T) to adopt this system. For some, it is a liberating feeling to not be locked down to a carrier and getting to upgrade your phone as much as you want. I personally am just fine with the upgrade every two years and even if I had wanted to upgrade my iPhone more often I would most likely just use the double account that gives you an update every year by doing one line at a time.

You could even use Craigslist. Sell your current phone, spend a little money, and upgrade to the newest model.

 

[gmikesell]

The AT&T and Verizon approach to this model would be to first raise all rates by 30%, then eliminate the subsidy, reduce the monthly cost of your plan by 20% if you pay for your smartphone outright and then offer a monthly payment plan (with interest) for those who can't pay up front the phone.

I voted no for this exact reason, as posted by barkomatic. I would expect that Verizon and AT&T could take this as an opportunity to raise rates in such a way that it looks like a discount when, in fact, it could lead to more expensive plans in the end. I get new phones frequently enough that the T-mobile styled plan wouldn't help me at all and in fact, I think might make it more difficult/expensive to do early upgrades. That is not a plus for me.

 

[CEmajr]

I personally wouldn't want my carrier (AT&T) to adopt this system. For some, it is a liberating feeling to not be locked down to a carrier and getting to upgrade your phone as much as you want. I personally am just fine with the upgrade every two years and even if I had wanted to upgrade my iPhone more often I would most likely just use the double account that gives you an update every year by doing one line at a time.

I just feel having the un-carrier system would make things a lot less streamlined, it's actually the reason I recently went with AT&T as apposed to T-Mobile recently. Just the idea of having to buy the phone either outright, or using a monthly payment system to pay for the device is a bit of a turn-off.

It's pretty much the same thing except the rate plan and phone cost are separated. AT&T has already factored "paying for the phone" into their monthly rate plan prices.

It's like something triggers in people's minds when you tell them what they're actually paying for. It's like having two people both paying $90 per month for their bills but you tell one of them that $20 of that bill is for their phone and they get pissed even though its the same price.

Tmobile is in for a major challenge trying to get the average American consumer to understand and buy into this model.

 

[Applejuiced]

I upgraded to a Galaxy S2 Skyrocket in November 2011. Since then I've upgraded to an S3 and now a Note 2 on the same line. I'm taking a different line's upgrade for the S4. I will call once again in the Fall when the next iPhone comes to upgrade my primary line (the one I used for the Note 2).

So yeah, if they think you're a loyal customer (almost 14 years here), they'll let you upgrade.

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I been a loyal customer since 1998 with never a late payment and multiple lines on my family.
The wouldn't budge even when threatened to leave them to move up my upgrade. I find it very hard to believe that they give you full upgrades every 6 months. I guess they must do it just for you cause everyone else has to wait 20 months or so.

 

[Kashsystems]

I been a loyal customer since 1998 with never a late payment and multiple lines on my family.
The wouldn't budge even when threatened to leave them to move up my upgrade. I find it very hard to believe that they give you full upgrades every 6 months. I guess they must do it just for you cause everyone else has to wait 20 months or so.

Last year I called on 3 lines and they budge. 2 of them were for iPhone 5 upgrades. They basically told me it is harder for them to do early upgrades for iPhones than other products. It was the first time I had ever asked though.

This was around the holiday season so I do not know if that makes any difference.

 

[wordoflife]

Last year I called on 3 lines and they budge. 2 of them were for iPhone 5 upgrades. They basically told me it is harder for them to do early upgrades for iPhones than other products. It was the first time I had ever asked though.

This was around the holiday season so I do not know if that makes any difference.

When someone on my account got their iPhone 4 (8GB) last summer, they realized that they didn't like speakerphone quality or something like that. Was too late to return it, but anyways we called AT&T and we did have to convince the lady and she offered an HTC One X for $79.99 and we could still keep the iPhone. She couldn't provision an iPhone 5 or anything though. But still nice that she was able to do that. Didnt buy it though - I guess I should have. Would've easily made a profit.

So yes they do sometimes But I'm a little skeptical With how many they've given you.

 

[2298754]

I been a loyal customer since 1998 with never a late payment and multiple lines on my family.
The wouldn't budge even when threatened to leave them to move up my upgrade.

Threatening them doesn't help you at all. Just ask nicely.

I find it very hard to believe that they give you full upgrades every 6 months. I guess they must do it just for you cause everyone else has to wait 20 months or so.

If you don't believe me, then that's fine. My phone history pretty much shows that AT&T has let me. I haven't paid the out of contract price on a phone ever.

 

[Applejuiced]

Threatening them doesn't help you at all. Just ask nicely.



If you don't believe me, then that's fine. My phone history pretty much shows that AT&T has let me. I haven't paid the out of contract price on a phone ever.

I tried all different approaches multiple times.
Nothing.
What you claim is not their standard practice or policy.
Wish we could all get full upgrades every 6 months but its not gonna happen.

 

[Dwalls90]

I tried all different approaches multiple times.
Nothing.
What you claim is not their standard practice or policy.
Wish we could all get full upgrades every 6 months but its not gonna happen.

+1, they won't give full early upgrades that often. They don't even seem to be moving them forward a month...

 

[Kashsystems]

When someone on my account got their iPhone 4 (8GB) last summer, they realized that they didn't like speakerphone quality or something like that. Was too late to return it, but anyways we called AT&T and we did have to convince the lady and she offered an HTC One X for $79.99 and we could still keep the iPhone. She couldn't provision an iPhone 5 or anything though. But still nice that she was able to do that. Didnt buy it though - I guess I should have. Would've easily made a profit.

So yes they do sometimes But I'm a little skeptical With how many they've given you.

Understand the skepticism, it was as stated the first time I had asked though, I have a feeling that it will be harder later on. They only other thing I might not have mention was I could only order the iPhone through them over the phone. I didn't care either way so I gave them my credit card.

The other guy upgrading 6 months is harder to swallow but I am wondering if he is doing non iphones. That seems to be the biggest issue and my belief is because Apple is very stingy on price breaks. I have client who resells electronics etc and they have told me Apple is notoriously strict on pricing and leeways.

 

[EbookReader]

I voted no for this exact reason, as posted by barkomatic. I would expect that Verizon and AT&T could take this as an opportunity to raise rates in such a way that it looks like a discount when, in fact, it could lead to more expensive plans in the end. I get new phones frequently enough that the T-mobile styled plan wouldn't help me at all and in fact, I think might make it more difficult/expensive to do early upgrades. That is not a plus for me.

if Verizon and AT&T have competitions in the USA, Verizon/AT&T raising their rates will mean they will lose customers to their competition.

 

[gmikesell]

if Verizon and AT&T have competitions in the USA, Verizon/AT&T raising their rates will mean they will lose customers to their competition.

I would tend to agree, but historically, I haven't seen that to be the case, at least not where telecommunications is concerned. Even Verizon is the most expensive carrier and they have the largest subscriber base. Of course, all this is in relation to what they have to offer in terms of coverage, services, etc. Hence, I don't think that the threat of loosing customers will be much of a price controller for them until they actually do ...start to lose customers. Then the tables will change significantly, I would expect.

 

[Herdfan]

Too many people are voting YES, so it probably won't happen. The carriers won't want to give the people what they want.

We currently have 7 lines on AT&T, so it would be a big savings. And we rotate phones down, so even buying a new one every year would still be big savings.

 

[2298754]

if Verizon and AT&T have competitions in the USA, Verizon/AT&T raising their rates will mean they will lose customers to their competition.

This is wrong. VZW and AT&T dropped their unlimited plans, and look what happened. They GAINED more customers and people are LEAVING T-Mobile/Sprint because their services are junk.

 

[CEmajr]

If they do decide to adopt it the reason will not be because of competition from T-Mobile. AT&T/Verizon currently have more than double the subscriber base of T-Mobile so it would take several years of remarkable growth to significantly close the gap.

If AT&T/Verizon decide to do this it will be because they believe it will make them more money AND continue to increase their subscriber base.

So if T-Mobile begins to grow due to this new method and consumers buy into it, AT&T/Verizon will find a pricing structure that makes it attractive to potential new customers but I'm pretty sure overall it will still be more expensive than T-Mobile. They would give the customer some type of discount on the rate plan but people have to remember that most people get new phones as soon as the carrier allows so there won't be too many people who are actually holding onto 2-3yr old phones. T-Mobile isn't within range of their subscriber bases so they don't need to drop prices to their levels in order to compete. They'll always have a coverage advantage for the foreseeable future.

People here are missing the point that the most attractive part of Uncarrier to the carriers is that the carrier no longer has to subsidize the device and the consumers pay full price for the phones. AT&T/Verizon would LOVE for their customers to pay full price for their devices but they are unsure if the US consumer is ready to give up the current "subsidy" model. Think about it. T-Mobile's current model is a goldmine for the carrier. People can upgrade "whenever and as often as they want" as long as they pay off their devices. People are impulse buyers and when you tell them all they have to do is trade in their 1 yr old device for the latest and greatest and just pay a down payment and sign up for another $20 month financing plan, they hop all over it. The carrier then makes even more money off the device that was traded in. AT&T/Verizon will be watching T-Mobile's numbers this year and determine whether or not they think the public is ready.

 

[Truefan31]

Uh Verizon and AT&T are getting their money back on the phones, it's called their higher rates that you pay every month. And after 2 years it doesn't go down like tmobile would

 

[EbookReader]

I would tend to agree, but historically, I haven't seen that to be the case, at least not where telecommunications is concerned. Even Verizon is the most expensive carrier and they have the largest subscriber base. Of course, all this is in relation to what they have to offer in terms of coverage, services, etc. Hence, I don't think that the threat of loosing customers will be much of a price controller for them until they actually do ...start to lose customers. Then the tables will change significantly, I would expect.

If they can raise their rates and not lose subscribers, what are they waiting for? They could do it right at this minute and they will have bigger profits.

for example, If they raise their rate by $2 per subscriber, that's 100 million subscribers x $2 a month x 12 months = $2.4 billion extra in profits each year.

 

[gmikesell]

If they can raise their rates and not lose subscribers, what are they waiting for? They could do it right at this minute and they will have bigger profits.

for example, If they raise their rate by $2 per subscriber, that's 100 million subscribers x $2 a month x 12 months = $2.4 billion extra in profits each year.

Good point! Lets consider for a moment that the carriers already keep metrics on how much money goes to device providers vs. money that goes to services. Now, they eliminate the money that goes to the device providers and pass that on to customer directly by adopting the 'uncarrier' business model, then up their service fees by $2 or $5 or even $10 per month! Then produce "us too" marketing and dress it up all nice and pretty. We, as customers, unwittingly raised our rates by virtue of what we "asked for".

You're right. What are they waiting for? Somehow, I still don't see this as a win for us, the customer. At least, not for those that will inevitably upgrade our phones every 2 years or less. For those that keep their mobile devices for more than 2 years, this 'uncarrier' model could represent a cost reduction. I suppose that, from this perspective, it would be a good thing. However, I don't see me keeping my device for that long. Consider the overnight line-ups for repeat iphone buyers who replace their 6mth-1yr old iphones... and now we have the Samsung Galaxy line, I just don't see people waiting to buy the newest tech simply because their current phone is still functional and they could drop their plan costs by $20 or so per month. Sure, there will be some, but not as a rule I don't believe.

I must say, this discussion is a lot more interesting that I thought it would be. Thanks for the provoking thoughts!

 

[EbookReader]

http://www.tmonews.com/2013/04/as-t-mobile-drops-contracts-verizon-moves-in-the-opposite-direction/
As T-Mobile Drops Contracts, Verizon Moves In The Opposite Direction

Announced early this morning, Verizon Wireless has changed how it will handle device upgrades for customers nearing the end of their contracts. Customers on a two-year agreement will now have to complete the entire 24 months before being allowed to upgrade. That’s a four-month change from today’s current policy of allowing the upgrade at 20 months.

In fact, Verizon is taking the bold position of saying this actually benefits the customers by being “consistent with how the majority of customers purchase new phones today.” Pardon me while I go find an allergy pill, I’m allergic to nonsense excuses. Verizon says the first customers affected by this change will be customers who contracts expire in January 2014. So customers who thought they would be able to upgrade at 20 months are now going to be in for a rude surprise when they show up to a Verizon store and get told “sorry, four more months yo.”

 

[EbookReader]

http://news.cnet.com/8301-1035_3-57...aid-off-so-why-is-my-monthly-bill-still-high/
The phone subsidy is paid off, so why is my monthly bill still high?

The big question is whether AT&T, Verizon, and Sprint dislike subsidies as much as they like giving up the extra revenue they get from customers like you who hold onto their devices much longer than their contract period. We'll have to wait and see how popular T-Mobile's policies are

----------------------

Justice for subscribers who've paid off their phones
Dear Maggie,
I have been searching and have not been able to find the answer for this question.
I have an older iPhone 3GS that I bought coming up on four years now. I'm sure the subsidy that AT&T covered has been paid off by now. I really have no need to upgrade my phone. But I would like to renegotiate a lower rate with AT&T. Do I have any options and what could I expect for a reduction in my monthly service, if any?
Thanks,
Todd


Dear Todd,
Unfortunately, AT&T doesn't adjust the price of your monthly service based on whether or not your phone is fully paid for or not. This means that the price of your service when you buy a new phone with a subsidy is the same at the beginning of your new contract as it is 24 months later when the contract expires and you have finished paying off the phone. Carriers force customers to pay a hefty early termination fee to cover the cost of the device if they leave the service early.
Of course, it would be better for consumers if AT&T and other carriers had a policy so that when you finished paying off the subsidy your monthly service cost would be reduced, but most do not.
Why? The simple answer is because AT&T and the other carriers who have set up their plans in the same fashion want to wring as much revenue out of you as possible. And the truth is you are an ideal customer for them right now. You paid off of your phone subsidy many moons ago and now you're still paying for the service.

 

[Applejuiced]

http://www.tmonews.com/2013/04/as-t-mobile-drops-contracts-verizon-moves-in-the-opposite-direction/
As T-Mobile Drops Contracts, Verizon Moves In The Opposite Direction

Announced early this morning, Verizon Wireless has changed how it will handle device upgrades for customers nearing the end of their contracts. Customers on a two-year agreement will now have to complete the entire 24 months before being allowed to upgrade. That’s a four-month change from today’s current policy of allowing the upgrade at 20 months.

In fact, Verizon is taking the bold position of saying this actually benefits the customers by being “consistent with how the majority of customers purchase new phones today.” Pardon me while I go find an allergy pill, I’m allergic to nonsense excuses. Verizon says the first customers affected by this change will be customers who contracts expire in January 2014. So customers who thought they would be able to upgrade at 20 months are now going to be in for a rude surprise when they show up to a Verizon store and get told “sorry, four more months yo.”

Lol
Love how they say this change actually benefits the customers
Talk about greed....

 

[EbookReader]

http://www.change.org/contracts

130,079 signed

http://news.cnet.com/8301-1035_3-57580421-94/petition-for-verizon-to-go-contract-less-gains-steam/

Verizon Wireless customers and, in some cases, critics have been signing a petition at a torrid pace, asking the company to go contract-less.

The petition on Change.org now has approximately 94,000 signatures, roughly 56,000 supporters shy of its goal of 150,000. The petition, created by "longtime Verizon customer" Mike Beauchamp of Wichita, Kan., has called the petition, simply, "Verizon: Get rid of contracts for wireless service."

"Getting rid of carrier contracts is a win for customers. Verizon's CEO, Lowell McAdam, has already expressed his willingness to do away with them if consumers speak loud enough about it," Beauchamp writes. "So here's your chance: Sign this petition to tell Verizon to end carrier contracts and create an affordable way for consumers to purchase their devices."

How many signature would be required before Verizon CEO act on his words (Verizon to follow suit if consumers start asking for it).

Verizon CEO Lowell McAdam cracked open the door to a full no-contract wireless world.
McAdam said it was "pretty easy" to change up the model to eliminate contracts, and added that he would watch the consumer response that T-Mobile gets from its recent decision to drop contracts and phone subsidies altogether. He indicated a willingness to follow suit if consumers start asking for it.