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T-Mobile to kill smartphone subsidies in 2013, offer value plans only

By Jos
Dec 7, 2012
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  1. In addition to yesterday's news that they'll be selling Apple products starting in 2013, T-Mobile also announced it is shifting to an unsubsidized "Value Plan" system exclusively. The company says customers will be able to either pay full price for...

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  2. Tygerstrike

    Tygerstrike TS Enthusiast Posts: 827   +93

    Ladies and Gentlemen.....Witness the US death of Tmoble!!!! There are way way too many cheap ppl who only get cell service because they can get free phones. Now that those phones wont be free, Tmoble is going to lose customers to the carriers that offer free phones.
     
  3. corrosive23

    corrosive23 TS Member


    Did you miss this part?

    "About 80% of T-Mobile's activations are already for their current Value Plans"
     
    psycros likes this.
  4. Jim$ter

    Jim$ter TS Enthusiast Posts: 127   +22

    Wrong Tigerstrikee....Not death but growth. A lot of people are realizing they can save money in the long if they pay for the phone upfront. Verizon/AT&T...sure you can get a free phone...but you pay more than double in Monthly fee's forever! People need to look at the bigger picture.
     
  5. psycros

    psycros TS Booster Posts: 718   +222

    Smartphones are now the most common wireless devices in the US, and the overwhelming majority of them are iPhones. No carrier I know of offers a free current or last-gen iPhone with either new contracts or upgrades. This is the smartest move T-Mo could make. Subsidized devices are an outdated concept that's already been largely abandoned in Europe. Within a few years subsidies will rare outside of the developing world. T-Mobile is likely to gain customers from this move.
     
  6. inventix1136

    inventix1136 TS Rookie Posts: 85   +14

    I have to agree that they will get market share because of it.

    What other carrier can you go to that allows you to bring your own device, put in SIM card, get prepaid as you go, which can be had for $9/month if you don't use too many minutes and don't need data -- and when you need data, just change the plan on the phone to get data/unlimites txt/unlimited mgs for $2 and then when you are done with data needs, change back to prepaid as you go. And this is for a Galaxy Samsung SII...

    P.S. Had the setting on prepaid on the go, was at museum but the queue to buy tickets was a mile long but they had online purchasing with electronic kiosks pickup so I changed my plan to the $2/day plan at the museum directly on phone via T-mobile app, purchased the tickets, and on end of the day switched back to prepaid minutes only. Total price of usage for entire month with that one day of data and my low minutes usages - $13...
     
  7. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,088   +716

    I agree, I think it's a great idea. Never hurts to have more than one price model. Right now carriers have to pay for part of the phone, but if T-mobile offers financing on their phones, they will actually make money on the sale. You'll be paying $15/month, but most likely it's going to be setup as a loan that you're paying off, and it won't be at 0% interest.

    People will jump at the opportunity to get high end phones for 'free' and pay for them monthly. The poison pill of course is while you don't have a contract keeping you with T-mobile, you will be sending them payments until your phone is paid off, even if you take your unlocked phone over to another carrier.
     
  8. Just an FYI no interest is charged on the loan and if you leave T-Mobile the whole loan becomes due in last bill.
     
  9. Sams Club - This week selling Samsung S 3 Phones for 96 cents. this does not cover the Value plan customers. What? This only covers the Family plan that they say they are getting rid of.
    The rest of us feel abandoned, hung out to dry, you get the feeling. Phones are too expensive, and I will probably hang on to my original 4G My touch until it turns to dust. My son has an old text button phone, same story folks. If T Mobile will play favorites with "Oh we cannot give you that deal, you have the wrong plan" I say that sucks.
     


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