T-Mobile's new "uncarrier" strategy/plans

[ChadBroChillz]

I hope they follow tmobiles new uncarrier plans.

 

http://www.tmonews.com/2013/03/breaking-down-t-mobiles-new-uncarrier-no-contract-one-rate-plan-fits-all-approach/

 

 

 

 

[Bob Newhart]

I hope they follow tmobiles new uncarrier plans.

 

http://www.tmonews.c...s-all-approach/

 

 

 

T-Mobile just raised all prices to that of the current level with the device subsidy, but without giving a subsidy.

 

It looks like each line has its price raised $20 to $25.

Plus they added "no overages", which I don't understand, as they charge you $10 per 2GB, after you go over 500MB.

 

This makes Sprint's plans look a lot better.

[JeffDTD]

I get what tmobile is going for, im just confused as to how they expect this to cause them to grow. If I were a current sub in contract paying more, paying extra to convert would piss me off. If I were a current sub paying less, paying more per month would piss me off. Current customers seem to be split on how they feel about the changes.

[Bob Newhart]

I see T-mobile losing even more customers by doing these changes. They are now charging the costs of what a other cell companies charge, one with a much large network that isn't stuck on Edge/GPRS speeds outside of large cities.

 

They are doing similar upgrades as Sprint, just upgrading their existing towers and not improving their coverage.

 

It might drive down the cost of the cell phones, or at least show us the true cost of them.

[khammondnm]

I see T-mobile losing even more customers by doing these changes. They are now charging the costs of what a other cell companies charge, one with a much large network that isn't stuck on Edge/GPRS speeds outside of large cities.

 

They are doing similar upgrades as Sprint, just upgrading their existing towers and not improving their coverage.

 

It might drive down the cost of the cell phones, or at least show us the true cost of them.

I don't think it's going to drive down cellphone costs until another major carrier jumps on board with no subsidies, maybe even another two carriers.

 

Sent from my SPH-L900 using Tapatalk 2

 

 

[ChadBroChillz]

IMO, these plans are the best way to compete with ATT/Verizon's shared data plans. I just like the flexibility of these plans. You can add a mobile broadband device for just 10 bucks. Unlimited data comes with 500MB of tethering free. i think those could entice Grandfathered Verizon/ATT unlimited data holders.

 

The main people complaining are the people who grandfathers into plans with less than unlimited mins, but I am sure Tmobile will grandfather them. It will likely be hard on the contract customers who pay less and have the subsidy included.

[Bob Newhart]

A large problem is them advertising no overages, BUT really charging for overages.

 

Right now, if you have a 2GB data plan, and you go over, the speed gets reduced to less than edge speeds.

In the new plan, the high speed, keeps going and you get charged $10 for each fraction of 2GB.

 

No,the plan doesn't come with 500MB of free tethering, they come with a data allotment of 500MB, where you can use on your phone or tether.

 

Nothing is free.

[Fraydog]

Sprint should go with this model, IMO.

 

I think Mr. Son would do something like that... If I had the choice to pay full price for a device to save over the life of a contract, guess what choice I take? The choice to pay full price.

 

The subsidy model is based on a house of cards, the more people know about it, the more they want to get out of that model.

[dedub]

The problem with non-subsidized model,once everyone doing it and there is no choice left, is eventually they will raise the non-subsidized prices to near or same as the previous subsidized plans. Which saves them a whole lot of money, but customers not so much.

[khammondnm]

The problem with non-subsidized model,once everyone doing it and there is no choice left, is eventually they will raise the non-subsidized prices to near or same as the previous subsidized plans. Which saves them a whole lot of money, but customers not so much.

I see it differently. I think if companies like Apple continue to sell their phone for lets say $600 that your average person is going to instead by a huawei for $300 despite features differences. The only reason people buy the best phone now is because $200 doesn't seem like a huge investment and its not going to matter if they buy the Apple or the huawei, there monthly price will be the same. Once subsidy prices are excluded from monthly fees, it will force the top phone makers to push their prices lower if they want to sell phones. That is my theory at least. It's all dependent on the carriers being honest and actually removing the subsidy money from monthly rates and not just taking us for all we got.

 

Sent from my SPH-L900 using Tapatalk 2

 

 

[WiWavelength]

The problem with non-subsidized model,once everyone doing it and there is no choice left, is eventually they will raise the non-subsidized prices to near or same as the previous subsidized plans. Which saves them a whole lot of money, but customers not so much.

 

In theory, if subsidies were taken out of the equation, then the options for purchasing a device outright should expand. Many big box and online retailers would be happy to sell unsubsidized cellphones for minimal profit because cellphones really are (or should be) commodity consumer electronics, just like TVs, computers, etc. In other words, greater competition would keep prices in check.

 

AJ

[dedub]

It's all dependent on the carriers being honest and actually removing the subsidy money from monthly rates and not just taking us for all we got.

 

In theory, if subsidies were taken out of the equation, then the options for purchasing a device outright should expand.

 

That is my point, we are talking about big telecom businesses, consumers currently pay x amount of dollars for service with subsidized phones. Once the choice for that subsidy is taken away, they have zero incentive to lower the cost of the service.

 

We will get screwed with higher unsubsidized phone prices, and the same or minimally cheaper service.

 

The only people who will win, are the ones that keep the same phone forever and/or buy used devices.

 

I don't have time to do the math right now, but I am pretty sure that the current non-subsidized services with their pay up front full price phones, do not really save a significant amount of money if you want a new phone every 1.5 to 2 years. If one kept a phone for a long period of time, sure a 10$ month/120$ year savings might add up. But what everyone forgets or ignores is the cost of a new full price phone vs the ~$200 saved over ~2 years.

 

see for example;

 

http://www.fiercewir...mers/2013-03-01

Edited March 6, 2013 by dedub

[Deval]

I see T-mobile losing even more customers by doing these changes. They are now charging the costs of what a other cell companies charge, one with a much large network that isn't stuck on Edge/GPRS speeds outside of large cities.

 

They are doing similar upgrades as Sprint, just upgrading their existing towers and not improving their coverage.

 

It might drive down the cost of the cell phones, or at least show us the true cost of them.

 

Sprint is improving coverage by deploying 1xAvanced on their 800mhz spectrum, not sure what you mean by not improving coverage.

[Bob Newhart]

 

Sprint is improving coverage by deploying 1xAvanced on their 800mhz spectrum, not sure what you mean by not improving coverage.

 

Adding towers outside of metro/freeway areas.

[Deval]

Adding towers outside of metro/freeway areas.

 

Hopefully the addition of the 800mhz carrier will help with that. But honestly, it all comes down to cost/benefit.

[4GHoward]

T-Mobile is introducing revamp Classic Plans and Prepaid Plans for National Retailers as they can’t support the Value Plan structure.

 

http://www.tmonews.c...onal-resellers/

 

[dmchssc]

I just want T-Mobile to get some cheap stand-alone mobile broadband plans. If I could pay $20 and get 2 GB that I could use over a 30 day period, I wouldn't think twice to use that with my Nexus 7 occasionally.

[Bob Newhart]

Those T-Mobile prices are very high considering having to pay full price for phones, plus the overage fees.

[Fraydog]

Those T-Mobile prices are very high considering having to pay full price for phones, plus the overage fees.

 

The plans revealed today are the subsidy plans for national retailers who don't support EIP. Phones will be cheaper because Costco and the other national retailers still use the subsidy model and the phones will be cheaper upfront.

[JeffDTD]

More confusion is all this accomplishes

[WiWavelength]

More confusion is all this accomplishes

 

And some honestly believe that, with approval of the MetroPCS merger, T-Mobile is ripe to overtake Sprint as the #3 carrier...

 

AJ

[JeffDTD]

 

And some honestly believe that' date=' with approval of the MetroPCS merger, T-Mobile is ripe to overtake Sprint as the #3 carrier...

 

AJ[/quote']

 

Im curious of your opinion!

[WiWavelength]

Im curious of your opinion!

 

From a rational standpoint, T-Mobile's approach is in the right place. The contract-subsidy system needs to go away, yesterday. In fact, carriers should get out of the consumer electronics retail business altogether.

 

However, if only T-Mobile pursues this strategy, I think that it will backfire. Even price conscious consumers look mostly at upfront costs, not long term costs. And T-Mobile (not to mention, MetroPCS) subs tend to be those who are credit challenged and can least afford to purchase unsubsidized devices outright.

 

AJ

[JeffDTD]

 

And T-Mobile (not to mention' date=' MetroPCS) subs tend to be those who are credit challenged and can least afford to purchase unsubsidized devices outright.

 

AJ[/quote']

 

They also tend to be the hardest on their devices and struggle the most to maintain consistent monthly payments. Will a customer who has to pay the remaining balance of his device subsidy for the 12 month old phone he broke be any more satisfied than a customer who has to purchase an early upgrade or device outright? The only substantative savings I see for myself would be after the device financing is complete, which is no mans land for most of us who like new shiny phones.

[Deval]

Well it is official today, they are now the un-carrier.