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Thread: T-Mobile ending phone subsidies in 2013

  1. #1
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    T-Mobile ending phone subsidies in 2013

    This will be an interesting change to the U.S. market and options when it comes to choosing a carrier.

    Will it be like buying a car and choosing how much you want as a down-payment and the rest is financed over your 2-years?

    Or will we not see that much of a significant change at all?

    gizmodo.com/5966363/t+mobile-is-ending-subsidies-in-2013++that-means-expensive-phones-and-cheap-plans

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    T-Mobile ending phone subsidies in 2013

    They need to go all the way and eliminate contracts too.

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    what does it mean for someone under contract till 2014 like me?

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    I just saw that (and posted it in the $5.99 grandfathered plans thread). Here is a quote from the CEO

    Announced today,

    T-Mobile Phasing Out Phone Subsidies

    Today, 4:31 PM

    The CEO of T-Mobile USA today announced that the company plans in 2013 to stop offering traditional service plans that include a subsidy to cover the cost of the cell phone. Instead, the company will only offer its "Value" plans, which are typically cheaper than traditional postpaid monthly plans offered by other carriers. Customers can still get a phone for a low-up front price and pay over time with a monthly installment plan. Unlike a traditional phone subsidy, the installment plan ends automatically when the phone is paid off


    I doubt it will affect your existing contract, but I think its a move in the right direction. I tend not to upgrade my phones every time I get a chance, and the last one I brought my own unlocked phone, so it hopefully means I won't have to keep subsidizing everyone else's upgrades (Not that I didn't enjoy other users subsidizing my t-zones for years lol.

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    what does this mean? i dont know all these terms but ive had an upgrade for 2 years now waiting and will finally use it on the iphone 5 when it arrives. Does that mean i wont get it for cheap?

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    Don't know Bobby. Hopefully they will phase it in for loyal customers.

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    Bold move. It'll be interesting to see how this plays out. I found it interesting that 80% of new activations were the value plan, which seems a lot higher than what I expected.

    Carriers do seem to slowly be moving over to non-subsidized models, and T-Mobile seems to be at the forefront of this.

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    Hopefully they eliminate the 2 year contract for those who opt to pay full price for their phone upfront or buy their phones from another source.

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    Re: T-Mobile ending phone subsidies in 2013

    Quote Originally Posted by Bobbyburns View Post
    what does this mean? i dont know all these terms but ive had an upgrade for 2 years now waiting and will finally use it on the iphone 5 when it arrives. Does that mean i wont get it for cheap?
    Chances are there will not be an option for customers on an upgradeable plan to get an Iphone for 200.00 with an upgrade. Tmoblie wants everybody on the Value plan and they will use the IPhone as leverage to get current customers off the older plans.

    Sent from my HTC Incredible S using HowardForums

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    Finally, somebody stepped up the plate and get themselves out of a broken business model. There are better uses for the money besides subsidizing devices, in return for getting rid of the subsidy i would like to see better network performance, lower monthly rates and the elimination of 2 year contracts.

    IMO, device subsidies are nothing but money pits which prevent wireless carriers from truly being competitive.

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    If you bring your own phone, or buy the phone outright, are you still under a contract? I didn't think you were.

    The main point of a contract was to allow the carrier to overcharge you on a monthly rate to make up for the phone subsidy they gave you when you started your contract (in addition to being their client for the cell service). Once the phone subsidy is gone, they don't have any $ to make up for AND people would not have any incentive to switch because of the really low rates.

    Contracts, as they are today, would not be necessary. The closest thing to a contract is that you are still on the hook for the phone financing - but that is MUCH clearer than the mess that is "early termination fees".

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    Quote Originally Posted by Big Ang
    If you bring your own phone, or buy the phone outright, are you still under a contract? I didn't think you were.
    Yes, T-Mobile currently requires a 2 year contract for the Value plan without device subsidy and even if you bring your own. This is why if T-Mobile wants to insist on pushing their Value plans next year without any device subsidy then they should get rid of the 2 year contract requirement.

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    i can see big churn coming to tmobile when this new plan is implemented. the average american consumer is used to the phone subsidy. It looks like they will be competing with the mvnos and not they other big 3.

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    They better eliminate contracts too then. Whats' the point of paying so much and still be required to sign a 2-year contract. If they do not eliminate the contract requirement, I see them losing quite a few customers.

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    Phone subsidy doesn't work well for me because I change phone every six months. I'd pay lower monthly payment to offset the device cost.
    Value Plan is the best possible option for me.



    Optimum/Cablevision

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