MacNN | T-Mobile to drop phone subsidies in 2013
Mac News Network View: Standard | Headlines | Categorized | Slim
Mac News Network
Mac News iPod News Reviews Forums
 

Desktop Headlines
T-Mobile to drop phone subsidies in 2013
Thursday, December 6, 2012 @ 5:12pm

During Deutsche Telekom's annual investor conference, T-Mobile USA CEO John Legere announced his intent to do away with subsidies for cellphone purchases with contracts. Legere said that customers will pay an upfront fee for the devices, and pay the remainder of the phone's value in affordable monthly installments.



T-Mobile currently offers a "Classic" plan that subsidizes the device, requiring a two-year contract. The carrier's "Value" plan allows consumers to pay the full cost of the phone in exchange for lower monthly plan rates. Legere said the initiative to do away with the Classic plan will begin in 2013, and only the Value plan will be offered going forward. Legere claimed that "We think there is a huge room for a carrier to change in a way that the larger players will choose to or will not be able to respond to." He added that consumers will be able to purchase the "most iconic device in the world," presumably the iPhone, for $99 and pay monthly installments of between $15 and $20 for 20 months after purchase. Legere noted that T-Mobile will directly target AT&T in its forthcoming advertising, saying that he is "very certain in the coming months you are going to see dramatic change." Legere said that the tactic slams AT&T, while praising the iPhone, and to "get used to that tone because that is the way we're going to play."

Comments on this Article
Print Friendly Version
Email to a Friend
Add MacNN to Your RSS Feeds
Buy from the Apple Store


Related Stories:

Today's MacNN Stories:

  • Forums: new channels on Apple TV and more - 12:09 PM EST
  • Apple deals: Mac desktops from $929 - 12:08 PM EST
  • DealNN: iPad mini for $200 - 12:07 PM EST
  • Sonos software update adds home Wi-Fi support to speaker system - 11:49 AM EST
  • Video shows alleged rear shell for 5.5-inch iPhone [u] - 10:33 AM EST
  • Sony QX1 Smart Lens leaks with E-Mount lens compatibility - 9:55 AM EST
  • iWatch still in engineering verification phase, rumor claims - 9:47 AM EST
  • Uber Germany facing shutdown country wide, appealing order - 9:26 AM EST
  • Elgato launches trio of HomeKit compatible home automation devices - 8:01 AM EST
  • Briefly: LinkedIn retires InMaps, BBC's kids' coding, computing shows - 1:00 AM EST

    Today's iPodNN Stories:
  • AMD ships three eight core FX processors based on Piledriver - 11:46 AM EST
  • European anti-trust regulators probing Facebook's WhatsApp deal - 10:50 AM EST
  • Attorney Danny Marti nominated for US intellectual property czar - 10:16 AM EST
  • Samsung invites media to Photokina event for possible NX1 launch - 8:21 AM EST
  • Microsoft mistakenly teases Windows 9 in China - 6:57 AM EST
  • No comments posted on this story yet. Please post yours.
    Your Comments
    In order to post comments, you must be a registered member of the MacNN Forums and logged in. Please login with your MacNN Forums username and password.

    MacNN Forums Login:

    MacNN Forums Password:

    Not a member of the MacNN forums? Register now for free.