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:

  • Briefly: Free football on Apple TV, new acts for Apple Music Festival - 7:18 PM EST
  • Motorola debuts second-gen 360, new 360 Sport smartwatch - 6:12 PM EST
  • Hands On: Griffin Powermate Bluetooth - 3:07 PM EST
  • In the news: new Apple Watch bands, $149 Apple TV in latest rumors - 2:37 PM EST
  • Daily Deals: Toshiba 5TB external drive, Twelve South, Samsung printer - 2:25 PM EST
  • App Update: OmniFocus, Scrapbook, Notefile, more - 1:25 PM EST
  • FTC finds Machinima responsible for Xbox One ad 'deceptive conduct' - 1:25 PM EST
  • Briefly: Hulu commercial-free option, Amazon Instant Video offline - 12:45 PM EST
  • Apple again adds 18 more financial partners to Apple Pay list - 12:25 PM EST
  • Comcast tests $30 fee to remove Internet service data cap in Florida - 11:50 AM EST
  • Asustor rolls out quartet of Broadwell-powered NAS appliances - 11:48 AM EST
  • One More Thing podcast episode 2: Downton Apple - 11:20 AM EST
  • Troll Touch debuts TrollCover IR plug-and-play touchscreen for iMacs - 11:03 AM EST
  • Polaroid Snap resurrects instagram-like photos for 21st century - 10:13 AM EST
  • MacNN Deals: Software offers to organize and protect your Mac - 10:12 AM EST
  • Netgear launches D7800 X4S Nighthawk VDSL/ADSL Modem Router - 9:15 AM EST
  • Asus shows RT-AC5300 router with eight antennas at IFA - 9:12 AM EST
  • Toshiba Q300, Q300 pro SSD line unveiled at IFA trade show - 8:57 AM EST
  • Hands On 30/30 2.1.4 (iOS) - 8:32 AM EST
  • Toshiba completely refreshes desktop, laptop hard drive lines - 8:30 AM EST
  • WD shows My Book Pro Thunderbolt 2 RAID 0,1 drive array - 8:13 AM EST
  • Intel details entire range of sixth-generation Skylake processors - 7:57 AM EST
  • Second Apple vs Samsung damages retrial set for March or April - 12:03 AM EST

    Today's iPodNN Stories:
  • So long, and thanks for everything! - 2:31 PM EST
  • Lizard Squad member convicted over 50,700 computer crime charges - 9:58 AM EST
  • Microsoft offers grants to universities for HoloLens research - 7:25 AM EST
  • LG Display starts mass production of AIT display panels for notebooks - 7:47 AM EST
  • Briefly: EE fined £1M in UK, Unofficial YouTube app on Android Wear - 11:14 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.