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:

  • Tim Cook posts photo from latest China visit - 10:10 PM EST
  • Twitter introduces Digits, a new way to log into applications - 9:32 PM EST
  • Apple found not guilty of infringing on expired GPNE patents - 9:09 PM EST
  • AT&T reveals third quarter earnings, falls short of estimates - 8:11 PM EST
  • Teardown of iPad Air 2 by iFixit confirms 2GB RAM, smaller battery - 8:00 PM EST
  • Google debuts Inbox as tool for managing email with automated bundling - 7:35 PM EST
  • Rare Apple I computer sold at auction for $905,000 - 6:42 PM EST
  • FCC freezes clock on merger reviews of Comcast/TWC, AT&T/DirecTV - 5:33 PM EST
  • OS X Yosemite nudges Chrome, Firefox users into trying Safari - 5:08 PM EST
  • iPad Air 2, Mini 3 now available for Personal Pickup at Apple Stores - 4:14 PM EST
  • FBI director asks Congress to update law to circumvent encryption - 3:50 PM EST
  • Avast 2015 adds Home Network Security, SecureDNS - 3:20 PM EST
  • Apple Pay bugs cause problems with card images, overcharging - 2:39 PM EST
  • Hands On: RapidWeaver 6 (OS X) - 2:18 PM EST
  • Unity Technologies names ex-EA exec John Riccitiello as CEO - 2:04 PM EST
  • Ricoh unveils three laser printers with 23 page-per-minute output - 1:49 PM EST
  • Early reviews call Air 2, Mini 3 best iPads ever, but just iterative - 12:56 PM EST
  • Pangu team debuts early, developer-only iOS 8.1 jailbreak - 11:07 AM EST
  • Briefly: Sky+ mobile app update, UberXL launches in United Kingdom - 10:55 AM EST
  • Apple CEO meets with Chinese official to discuss iCloud hijacks - 9:51 AM EST
  • Google Play Music updates Listen Now page, adds Songza playlists - 6:49 AM EST
  • Apple SEC filing reveals executive RSU bonuses, lobbying costs - 12:13 AM EST

    Today's iPodNN Stories:
  • Japanese man arrested for 3D printing guns gets two years in prison - 10:58 PM EST
  • Giveaway: Rapoo 3920P wireless laser mouse - 4:42 PM EST
  • Barnes & Noble unveils Samsung Galaxy Tab 4 Nook 10.1 - 4:14 PM EST
  • Moto 360 software update ships, wireless charging dock on Google Play - 8:33 AM EST
  • AR start-up Magic Leap secures $542M investment from Google, others - 7:32 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.