I don't see what the hoopla is about tmobiles new plans. All they did was separate the subsidy from the line. It's still pretty much the same pricing system they have had for years. I had tmobile in 2010. Due to the fact that I bought my nexus one directly from Google I was paying $20 less a month than someone with a contract and subsidy. Pretty much the same as now.
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Carrier Do you want AT&T, Verizon and Sprint to adopt T-Mobile uncarrier strategy?
- Thread starter EbookReader
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Yes. If I could pay $50 for one line with unlimited talk, text and web and $20 to add unlimited data and tethering (not mentioned but should be) on AT&T's network I would love it.
It sure sounds similar to the original iPhone and iPhone 3G plan I had. Damn AT&T changing things up on us.
I wouldn't go for it on T-Mobile since I don't like their coverage in my area.
It sure sounds similar to the original iPhone and iPhone 3G plan I had. Damn AT&T changing things up on us.
I wouldn't go for it on T-Mobile since I don't like their coverage in my area.
I pay for the service not the device. If I pay a little more for excellent service then I'm happy.
If the service sucks.. It doesn't matter what kind of deal I'm getting on a subsidized or financed phone.
So far, I haven't had a reason to switch from VZW. If I did, my motivation wouldn't be a cheap phone or contract. It'd be the quality of service.
So, I'm sort of at a loss with all this "contract free" stuff. If T-mobile had decent LTE service in my area, I'd start a new T-mobile account and move my iPhone there.
The carriers need to be on equal footing coverage wise before this is even an issue. If you don't get the same LTE speed with a cheaper, contract free plan then what is the point if moving your fully paid for iPhone to that network?
If the service sucks.. It doesn't matter what kind of deal I'm getting on a subsidized or financed phone.
So far, I haven't had a reason to switch from VZW. If I did, my motivation wouldn't be a cheap phone or contract. It'd be the quality of service.
So, I'm sort of at a loss with all this "contract free" stuff. If T-mobile had decent LTE service in my area, I'd start a new T-mobile account and move my iPhone there.
The carriers need to be on equal footing coverage wise before this is even an issue. If you don't get the same LTE speed with a cheaper, contract free plan then what is the point if moving your fully paid for iPhone to that network?
I voted no. It's tough to see how they can roll this out and make it fair and reasonable for everyone. There are so many variables at play. Definitely let me know if im off base here.
But consider Verizon and their 2GB $100/mo plan versus T-Mo' 2GB $60/mo. How far is Verizon really going to take this down. Well as an iPhone consumer, the subsidy is currently $450/2yr or $18.50/mo for 2 years. So this plan would make sense (somewhat) at $80/mo. But this is the break even point where I would not pay more and Verizon's returns wouldn't shrink. But for phones that Verizon is subsidizing less, their returns shrink. And at a higher price it would definitely not be worth it.
And there is this to consider. People are inherently cheap. It will rub some people the wrong way to pay more upfront.
But consider Verizon and their 2GB $100/mo plan versus T-Mo' 2GB $60/mo. How far is Verizon really going to take this down. Well as an iPhone consumer, the subsidy is currently $450/2yr or $18.50/mo for 2 years. So this plan would make sense (somewhat) at $80/mo. But this is the break even point where I would not pay more and Verizon's returns wouldn't shrink. But for phones that Verizon is subsidizing less, their returns shrink. And at a higher price it would definitely not be worth it.
And there is this to consider. People are inherently cheap. It will rub some people the wrong way to pay more upfront.
They don't pay more upfront. People pay less upfront for the iPhone 5 on Tmobile than they do any of the other 3 carriers.
It's pretty much the same thing as it has always been except the price of the device is separated from the service like it should be. Once you have paid the carrier back for the device then you are no longer charged for it and if you choose to bring your own device then you do not have to pay the same rates to the carriers as those who bought theirs from the carriers.
Then once the device it paid off then you truly own it and can leave or take it to any carrier that you please.
The current model used by the other 3 is almost like paying a fee to a car dealership even after you have already made all the payments on your car loan.
You missed the point. You are right if Verizon adopts similar payment plans. I'm trying to keep everything simple, because paying in full will definitely be an option, payment plan is speculation.
My point is that this is not feasible for Verizon unless they plan to take smaller returns. I speculated that $80/mo is likely our best scenario. But at that price you really see no net difference on the high end. If the customer sees no real difference and Verizon sees their margins decrease, there is no reason to confuse the customer by rolling out new plans.
This is only true using T-Mo's payment plan.
I was paying $60 for a single line back then, same plan was $80 with subsidy.
I would like for Verizon to adopt this method. Only because starting with the iPhone 5, I pay full price for the phone in order to keep my unlimited data. I'm officially off contract and I wouldn't mind the extra time to pay off my phone.
Yes, because on AT&T even if I decided to keep my iPhone past two years there is no benefit, however if there was no contract and a lower monthly price, I could.
In the past I use the discount and renew every 12-18 months, but if they went no contract, I would keep my device 2-3 years, or until I felt like upgrading, also offering the ability to pay $99 up front for an iPhone then $20 per month for 24 months, would be nice not to have to shell out $549 out of pocket
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Don't forget they are all charging upgrade fees now, I think VZ is $30, AT&T is $36, and not sure what Sprint charges.
It would be best to go with no contract because of the fact you continue to pay for the device after 24 months if you do not upgrade, and to be honest, the Carriers would benefit since they do not have to pay Apple $500 plus per phone as you would pay the full price.
In the past I use the discount and renew every 12-18 months, but if they went no contract, I would keep my device 2-3 years, or until I felt like upgrading, also offering the ability to pay $99 up front for an iPhone then $20 per month for 24 months, would be nice not to have to shell out $549 out of pocket
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Don't forget they are all charging upgrade fees now, I think VZ is $30, AT&T is $36, and not sure what Sprint charges.
It would be best to go with no contract because of the fact you continue to pay for the device after 24 months if you do not upgrade, and to be honest, the Carriers would benefit since they do not have to pay Apple $500 plus per phone as you would pay the full price.
It honestly doesn't change anything that much, I'll continue to use the carrier that suites my needs the best. Just a side note, carriers aren't your friends and aren't trying to give you a break, they're doing what will generate the most revenue for themselves.
My contract ends in march 14 but I'm thinking of canceling Att in a couple of months. Im only keeping them right now because of the insurance. I'll however port my number to their prepaid service and save $25 a month. That should cover the etf in 5 months.
I never thought about this. You're right about this subsidy. Why after 2 years is my monthly still the same if the reason why I signed a 2-yr. contract was to subsidize the phone.
I really don't see what the big difference is between their new uncarrier strategy and the regular plans from other carriers.
I pay $99 up front and I HAVE to agree to have a monthly service plan while I pay off the phone over the next two years.... I'm struggling to see how that is different than a two year contract at another carrier?
I can pay off the phone early and leave T-Mobile if I want. That would more or less be $580... I'm struggling to see how that's any different that paying $199 at another carrier up front and then paying an ETF of $300 or so to leave early.
I appreciate the fact that I could pay for the phone upfront completely and start service with no contract. But can't I do that today at an Apple store and slip in a SIM from ATT and TMobile? If I'm wrong on this one then kudos to them. But beyond this I'm not really seeing the full benefit.
They have a cheaper MRC and I think that's great. Everyone likes to save $$ every month. Overall though TMobile's plans are really a half step forward. I applaud them for doing it but to me there really isn't that much difference.
If you really want freedom just go pay for a phone completely upfront and activate it where you want and be done with it. But then again, 98% of us wont' do it because we don't want to pay $500+ for a phone and then pay the same price for a plan then if we would have just gotten the phone subsidized.
I pay $99 up front and I HAVE to agree to have a monthly service plan while I pay off the phone over the next two years.... I'm struggling to see how that is different than a two year contract at another carrier?
I can pay off the phone early and leave T-Mobile if I want. That would more or less be $580... I'm struggling to see how that's any different that paying $199 at another carrier up front and then paying an ETF of $300 or so to leave early.
I appreciate the fact that I could pay for the phone upfront completely and start service with no contract. But can't I do that today at an Apple store and slip in a SIM from ATT and TMobile? If I'm wrong on this one then kudos to them. But beyond this I'm not really seeing the full benefit.
They have a cheaper MRC and I think that's great. Everyone likes to save $$ every month. Overall though TMobile's plans are really a half step forward. I applaud them for doing it but to me there really isn't that much difference.
If you really want freedom just go pay for a phone completely upfront and activate it where you want and be done with it. But then again, 98% of us wont' do it because we don't want to pay $500+ for a phone and then pay the same price for a plan then if we would have just gotten the phone subsidized.
The point would be other carriers following suit and dropping the prices on their plans, so you could potentially pay less in the long run. You're assuming the price for their plans won't change. But for US carriers like AT&T and Verizon who don't compete on a price point with T-Mobile it's hard to see what kind of plans they can implement that would benefit the customer.
http://www.datamation.com/mobile-wireless/why-the-mobile-phone-subsidy-is-a-myth-1.html
Why the Mobile Phone 'Subsidy' is a Myth
There are no "subsidies." What carriers like AT&T, Sprint and Verizon call a "subsidy" is actually a very high-interest loan.
One of the UK biggest carriers is launching this:
http://www.o2.co.uk/refresh
Why the Mobile Phone 'Subsidy' is a Myth
There are no "subsidies." What carriers like AT&T, Sprint and Verizon call a "subsidy" is actually a very high-interest loan.
One of the UK biggest carriers is launching this:
http://www.o2.co.uk/refresh
Look like the "uncarrier" strategy is successful for T-Mobile
http://online.wsj.com/article/BT-CO-20130808-702463.html?mod=googlenews_wsj
T-Mobile US Customer Base Grows Rapidly
http://www.pcworld.com/article/2046...-million-new-customers-in-second-quarter.html
T-Mobile US adds 1.1 million new customers in second quarter
http://online.wsj.com/article/BT-CO-20130808-702463.html?mod=googlenews_wsj
T-Mobile US Customer Base Grows Rapidly
http://www.pcworld.com/article/2046...-million-new-customers-in-second-quarter.html
T-Mobile US adds 1.1 million new customers in second quarter
I have a feeling that Sprint might surprise everyone and be the first among AT&T/Verizon/Sprint to follow T-Mobile example and separate the cost of the phone from the cost of the service.
If Softbank feels like it want to compete and gain market share...
A pretty honest reaction from UK Carrier O2 to T-Mobile USA dropping handset subsidies
https://thelab.o2.com/2013/03/are-customers-addicted-to-handset-subsidies/
If Softbank feels like it want to compete and gain market share...
A pretty honest reaction from UK Carrier O2 to T-Mobile USA dropping handset subsidies
https://thelab.o2.com/2013/03/are-customers-addicted-to-handset-subsidies/
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Sprint might be the first carrier that HAS to because most of T-Mobile's new customers are being taken from Sprint.
AT&T and Verizon don't compete on price and have so far resisted major reactions except for the Next and Edge programs they reacted to JUMP with. AT&T did create AiO Wireless in reaction to T-Mobile though. We haven't seen any other reactions from Verizon mainly because Verizon is loosing the least amount of customers to T-Mobile.