T-Mobile goes after AT&T Next with print ads, tosses Verizon Edge into the mix

July 23, 2013

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Last week, T-Mobile responded to AT&T Next with some biting comments, criticizing the implementation of the program and the ultimate cost it presents to subscribers. Such resulted in a bit of a carrier-on-carrier battle, and T-Mobile has again called out the program, this time with a couple of print advertisements. Also pulled into the criticism was Verizon Edge, a newly unveiled upgrade program by the carrier.

The latest criticism is in the form of a couple of print advertisements, one of which has been published today and the second that will be published on Thursday. In the ads, there are quotes from media that criticize AT&T Next, followed by a fairly passive-aggressive jab on T-Mobile's part at the carrier. In addition, T-Mobile's CEO also made a lengthy statement on the program, adding Verizon's Edge program into the mix.

“Had AT&T with “Next” and Verizon with “Edge” really taken our lead and unveiled offerings worthy of serious consumer consideration, we’d have to give them credit … On the surface, their programs look okay. For the first time, these old guard phone companies seemed to be acknowledging that a certain segment of customers hates being locked into the same phone for 730 days. But dig a little deeper, and you’ll see they don’t get it at all. Or they don’t want to.”

Subscribers who take advantage of AT&T Next can get a device without a down payment, instead paying a monthly fee that ranges from $15 to $50, depending on the device. The payments must be made for 12 months, after which point the device can be swapped for a new one, or for 20 months, after which point the subscriber can keep the phone.

Verizon Edge works a bit differently, spreading the full cost of the smartphone over a 24 month period in monthly payments. After 6 months, the subscriber can then upgrade to a new device, but is required to have paid for 50-percent of the full retail price of the device.

The issue with both of these plans, says T-Mobile, is the failure to factor the amount saved by not subsidizing the price of the handset into the monthly plan fee. As such, the subscriber would end up paying a large amount for a smartphone, but the plan pricing is still set as if the device were subsidized. T-Mobile contends that as such, the carriers have gotten it all wrong.

SOURCE: SlashGear

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  • Phone_Junkie

    AT&T’s quarterly profits are damn near T-Mo’s total revenues for the same. Compare the entire year for a good laugh. I wonder how effective these little jabs are? If you compare AT&T postpaid churn rates to T-Mobile’s growth, I wouldn’t say the impact is that great. Keep improving your network T-Mo and highlight yourself. Stop trying to drag the big dogs through the dirt. It’s not working.

    • Wayne Peterkin

      No, T-Mobile happens to be in the right this time. Asking customers to pay that much is certainly unfair. It is a really sneaky plan that AT&T unleashed on to its customers. Unless you haven’t noticed, what T-Mobile is doing is called American marketing. I hope that dragging the big dogs through the dirt does work so that customers don’t fall for this trap. Though I really would want to see T-Mobile do better, I am more on the side of the consumer since I am a consumer.

      • Phone_Junkie

        If you noticed Wayne, I was not comparing their plans. My post concentrated on T-Mo’s persistence of running negative ads against their competition with seemingly little positive impact in their favor. I understand the marketing tactics but to me this type of stuff drives me away rather than pull me in. I would rather hear about what T-Mo has to offer, not what their competition is lacking (or doing wrong). This type of marketing happens everywhere and with everything, I am aware. It just stands out more in this space for me because, well, I am a phone junkie. 😀

      • Jason

        Maybe T-Mobile shouldn’t be the one to bring it up. I haven’t seen many blog posts really comparing the true cost of the plans. You could hardly consider most of us who read tech or mobile blogs mainstream consumers. Someone needs to bring up the… what should the word be… nonupfront way that AT&T and the other carriers market. AT&T and Verizon keep finding ways to gouge consumers. T-Mobile is actually trying to listen to consumers and improve. This is free-market working. They just recently installed a lot of LTE towers in our area and have agressively forced the big three to lose business or compete by upgrading their service. This marketting is GREAT. Noone cares if they bash each other a little in the mobile market. This isnt politics, it is the free market. Only die hards or those working for the companies themselves care about that. Consumers need to realize there are choices.

    • bitflung

      that’s funny – you point out that AT&T’s profits are huge compared to T-Mobile as a comment to an article that basically highlight’s T-mobile’s claims that AT&T price gouges customers.

      full circle anyone?
      i’m with neither company at the moment – my carrier has even lower profits than T-Mobile. and that’s a Good Thing for ME, since users are the source of their profits.

  • iamcris

    I switched to T-Mobile in July of last year from Verizon. I have saved over $50/mo in that time. That is over $600 in savings in a year. My S3 cost me $649. You do the math. There is no debate who is driving the market changes right now. All of which, benefit the informed consumer.