T-Mobile CEO Misleads on 'No Strings Attached' Free Data, New Customers Require $20 Data Plan to Finance iPads

[garylapointe]

This is the worst article I have read on this site recently.
...
If you have a compatible iPad no matter where you bought it, you get 200MB free data, no string attached.
If you want $0 down 0% financing, you need to sign up with a plan.

Exactly, it's not "New Customers Require $20 Data Plan to Finance iPads" it's you must pay for a data plan to get the "free" financing.

And from other confusing info, they might still get an additional 200MB free on top of the plan they are paying for. I'm not sure about this part....

Gary

 

[notmenwohere]

To pay $20 dollar for a 500mb data monthly to get 200mb is not FREE.

Its like saying, i will give you my one million dollar car for free but you have to buy my one billion door home first.

Is the car free? NO, the car cost you a billion dollar.

T-mobile Press Release read,"....we offer 200mb free data to everyone AND 0% finance...."

AND not OR!!!!!

 

[kingtj]

It WAS misleading, regardless of what's "good business"!

All of the major news outlets announced this plan as 200MB of free data for ANYONE who walked in and purchased a new iPad from T-Mobile, period!

For example:

http://www.nbcnews.com/technology/t-mobile-offers-free-ipad-data-plan-yes-free-beer-8C11448553

Where it said:
"Basically, when you pick up a cellular-enabled iPad Air, you'll have to choose a carrier, then a plan. If you go with T-Mobile, you'll have the option to pay nothing at all, forever, but still get 200 MB of data every month to do with what you please. You don't need to buy the device from T-Mobile, and you don't need to be a customer already. Just get your hands on a tablet that works on T-Mobile's network and you can bring it in to have it activated. It's free, and free as in "free beer," not "free speech" or "free of obligations."

I understand how T-Mobile can try to weasel out of it after the fact, by telling people, "Oh... obviously, this doesn't include the iPads you buy from us with our 0% financing promotion!" -- but that was NEVER explained anywhere up-front. All of this was announced in TANDEM with the announcement that T-Mobile was offering the financing on the new iPad -- making it sound like the two offers went together.

Certainly, like many people, I thought, "Wow... I wonder how this can be good business for T-Mobile, giving free financing AND 200MB of free data?" But I also figured, "Well, maybe they get the iPads from Apple at some kind of discounted rate that offsets the financing costs -- and they know once you buy the iPad from them and have it already on a very minimal data plan with them, you're likely to use more data than that and pay them for data?"

I don't understand what is misleading about this? Yes, the 200mb is still free for whoever. No, they aren't going to give you free financing and free data. You either buy the iPad straight up, or you pay for monthly access. It's called business.

 

[applestory]

Danng!!! That was close, I was about to buy a T-Mo iPad... money saved lol

 

[Taz Mangus]

All I'm saying is it's not smart to go into debt for something that can easily be saved for in a few months. There's no such thing as "free financing," especially if you accidentally pay a day late or something. Not worth it, especially for a $600 purchase.

If you are concerned about paying on time then do a on-line auto payment where the payment is always paid on time. Problem solved. In this case it really is "free financing". It is smart to take advantage of free financing if you intend to keep the iPad at least 2 years. I am and I did take advantage of the free financing. And yes, people need to be smart about managing their expenses.

 

[skafia]

So I'm assuming you've never taken a 0% interest balance transfer on a credit card before either? I'm not a rocket scientist, but usually, interest-free loans are smart.

Okay, let's be real here. If you have to finance an iPad, you shouldn't be buying one.

 

[applestory]

To pay $20 dollar for a 500mb data monthly to get 200mb is not FREE.

Its like saying, i will give you my one million dollar car for free but you have to buy my one billion door home first.

Is the car free? NO, the car cost you a billion dollar.

T-mobile Press Release read,"....we offer 200mb free data to everyone AND 0% finance...."

AND not OR!!!!!

One billion doors.... hmmmmmmm that's a lot of doors

 

[Taz Mangus]

And from other confusing info, they might still get an additional 200MB free on top of the plan they are paying for. I'm not sure about this part....

Gary

You would get 500MB + 200MB, 700MB total which is not trottled.

 

[sixstrings03]

This is ****** but honestly who can't secure a zero interest credit line these days? I don't get the benefit of financing thru t mobile.

 

[31 Flavas]

They must be honoring some of the people who did the EIP and 200 mbs. I have confirmed with multiple reps that I will get the EIP and 200 mbs for free.

As far as I understand all plans get 200mb free or the 'first' 200mb free. As in the data plans add to your initial 200mb. However, I might be wrong on this. But I do not think so.

However, it seems pretty concrete now that no one will get $0 down + 0% interest without either a new/pre-existing voice line or adding a $20/mo data plan.

 

[spb3]

I guess consider yourself lucky you can shell out cash for an iPad, but don't judge others.

Are you saying it is wrong to tell people that their actions are wrong?

 

[bpcookson]

Okay, let's be real here. If you have to finance an iPad, you shouldn't be buying one.

For 0% down and only $25/mo you get all the perks of having an iPad while retaining your own finances for alternative investing. So not only can you use the free cash for alternative investments, but then consider that $25 today is worth more than $25 in two years due to inflation. Assume 4% inflation and you're saving $20 on a $500 iPad... enough to justify buying XCOM.

If no strings are attached, you'd have to be a fool to NOT finance it.

 

[Renzatic]

Okay, let's be real here. If you have to finance an iPad, you shouldn't be buying one.

Same with iPhones. If you have to get one subsidized, you're too poor to own Apple products.

Scoff scoff scoff.

 

[saturn88]

no such thing as free lunch

 

[kingtj]

Yep... exactly....

As I posted when I first went into my local T-Mobile store on iPad Air launch morning, I had a sales rep. who insisted I wasn't even allowed to buy the new Air on 0% financing unless I agreed to at least a 2.5GB per month data plan!

I tried to tell her that was incorrect and the details were even on the T-Mobile website, but both her and her manager would have none of it.

(Mind you, I'm already a T-Mobile customer with an iPhone 5.)

I finally relented and signed up with the 2.5GB data package, only because I have a corporate discount with them and my contract indicated I was getting a $10 discount on the data package for that. When I thought about it more, I figured I could always call in to cust. service and get the plan changed to something else, if need-be. (I would probably just tether from my iPhone 5 to the iPad via wifi anyway, most times where I didn't have a wireless connection available.)

You could have had THOUSANDS of new customers with this, but instead you have now further turned potential customers away by doing it this way.

I went to the T-Mobile store in Temecula and they waited until I got to check out to tell me about the $20 a month data plan - needless to say I walked away and they lost 2 new potential customers (myself and my bf).

We went ahead and went to Best Buy and got a regular wi-fi ipad airs with 18 months interest free financing, and no lame $20 a month data package!

 

[bbeagle]

I don't know why you're taunting me and being a jerk. I was just giving my story and made it clear it's more my own fault for making assumptions.

I'm sorry. I guess you're right, I was being snarky.

I said that T-Mobile wouldn't care if they lost a 'customer' that didn't earn them any money. And you're right, that leaves a bad taste in your mouth for T-Mobile. It's actually WORSE for their brand name than even offering it in the first place. I don't think T-Mobile's management understands this. I think they look at the bottom line for a 'customer' not making their money and treat those 'customers' like I treated you. And that's bad for their brand.

I use AT&T - I've never used T-Mobile. I've only heard bad things about them, like how slow their network is. This is yet another bad mark I have against T-Mobile. If T-Mobile ACTUALLY offered this for free, without strings, like they say, then it would be a GOOD mark in my book for T-Mobile. And someday I might switch to them...

But this move makes me even MORE not want to use them.

 

[madrich]

iPad Air

I was considering the TMO offer, but I am now totally confused.

 

[malexandria]

big deal

don't understand why everyone is so "outraged." It isn't like 200 mb of data is a lot of data, that's what maybe a 1/2 hour of surfing the web a month? I have the T-Mobile iPad and had zero issues setting it up at home. Just signed up, didn't prompt me for a credit card or anything, I just had to create an account. I mean my nonexistent count already ate up 201 kb and I haven't done anything!

 

[adub35]

Wait, so in order to finance an iPad through T-Mobile you have to be a paying customer?! This is outrageous!!! T-Mobile should be ashamed of themselves! /sarcasm

But really though, the title of this article is more misleading than anything. Requiring customers to have some sort of data plan through T-Mobile in order to FINANCE an iPad is not worth all this fuss. They're not a bank. Finance your iPad through Barclays and get the free data, or buy it outright and get the free data. I think it's funny people get so worked up and act like they're entitled to free things. Yeah, it would have been cool to get an iPad financed at retail price and free data along with it, but I don't think this policy is in the least bit surprising or uncalled for. And really, all the CEO said is that everyone gets free data, which is still true. All that changed is that new customers who want to finance an iPad with no money down have to have a monthly data plan. Seems reasonable.

If you have read all the earlier forums there were many people who financed and only originally had to pay a $10 monthly fee which they were told would then be credited back on their bill. Until Sunday if you tried to do the financing online this was also the case, they just changed it to the $20 minimum monthly fee yesterday, so I would say there was a little misleading going on here. The original press release didn't say you had to have a minimum $20 service plan to get the free financing. I can almost guarantee you that there will be a class action lawsuit for all the people that bought an iPad during the weekend that were mislead into thinking they could finance for free.

 

[skafia]

Danng!!! That was close, I was about to buy a T-Mo iPad... money saved lol

I just bought one a few days ago and I will be returning it shortly. I had confirmation from a T-mobile customer service rep that I will not incur the $75 restocking fee, but their website states that a fee may still apply so I'm prepared to go to war with that.

 

[notmenwohere]

For 0% down and only $25/mo you get all the perks of having an iPad while retaining your own finances for alternative investing. So not only can you use the free cash for alternative investments, but then consider that $25 today is worth more than $25 in two years due to inflation. Assume 4% inflation and you're saving $20 on a $500 iPad... enough to justify buying XCOM.

If no strings are attached, you'd have to be a fool to NOT finance it.

effing well said, this is exactly why i went and got one. Now i just hope they honor what was promised to me on the phone

 

[Codyak]

no such thing as free lunch

Hmm, so I wonder how F2P/Freemium games work?

 

[c1phers]

I'm sorry. I guess you're right, I was being snarky.

I said that T-Mobile wouldn't care if they lost a 'customer' that didn't earn them any money. And you're right, that leaves a bad taste in your mouth for T-Mobile. It's actually WORSE for their brand name than even offering it in the first place. I don't think T-Mobile's management understands this. I think they look at the bottom line for a 'customer' not making their money and treat those 'customers' like I treated you. And that's bad for their brand.

I use AT&T - I've never used T-Mobile. I've only heard bad things about them, like how slow their network is. This is yet another bad mark I have against T-Mobile. If T-Mobile ACTUALLY offered this for free, without strings, like they say, then it would be a GOOD mark in my book for T-Mobile. And someday I might switch to them...

But this move makes me even MORE not want to use them.

This. It would be a good way to entire customers to switch to T-mobile provided they had a good experience with T-mobile. At least for me, its been a huge debacle from the start with this iPad, I never want to switch my 3 lines over to T-mobile after the trouble I've had to go through with my order.

 

[garya73]

LOL. I am annoyed at T-Mobile (but mostly myself for not investigating this more closely).

I decided to keep my iPad 3rd gen w/cellular for another year.
But when I read no money down and 200 free mb, how could I resist?
I sold my iPad on eBay that same day. (Mostly because my AT&T iPad 3rd gen cannot do LTE on T-Mobile. Otherwise I would have kept it, and brought it over to T-Mobile).

Now I have no iPad, and a bad taste in my mouth of T-Mobile that will be long lasting.

I suppose I will spring for either the wifi only version, or go with an AT&T/Verizon iPad.

Shame on you T-Mobile. And shame on me for not thinking about the old saying "if it sounds too good to be true, it probably is (especially when it comes to phone companies!)."

How much did you get for it? I have a Verizon 32gb in white that I am considering putting up for sale on there.

 

[Taz Mangus]

If you have read all the earlier forums there were many people who financed and only originally had to pay a $10 monthly fee which they were told would then be credited back on their bill. Until Sunday if you tried to do the financing online this was also the case, they just changed it to the $20 minimum monthly fee yesterday, so I would say there was a little misleading going on here. The original press release didn't say you had to have a minimum $20 service plan to get the free financing. I can almost guarantee you that there will be a class action lawsuit for all the people that bought an iPad during the weekend that were mislead into thinking they could finance for free.

I don't think it is clear what T-Mobile is doing with those people that did the free financing before today. I have read posts where people stated that T-Mobile is honoring the free 200MB offer for those that financed that are new T-Mobile customers.