We are hearing some interesting news today out of the T-Mobile camp. It looks like those folks are looking to shake up the mobile industry and make some massive changes. T-Mobile hopes to completely get rid of device subsidies attached to contracts and such starting early next year. This means no more discounted phones and 2-year contracts, instead you’ll be on value plans and make payments towards your purchase.
According to FierceWireless T-Mobile will be completely killing off subsidies starting next year. This model is something T-Mobile has been offering for some time. Instead of signing a new 2-year contract and getting a brand new Galaxy S III for $199 you’ll have no contract, join a value plan, and pay an additional $20 a month (or so) on your bill as you pay off that smartphone. Whether this is less out of pocket or not depends on a few different variables.
T-Mobiles new man in charge Legere had this to say: “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,” Legere said. He noted that the Value plans T-Mobile will offer next year will be “fair and simple pricing” with “low out of pocket expenses” for consumers.
Whether or not Verizon or AT&T follow suite will be a big deal, considering you’ll be able to get contract free smartphones from T-Mobile and not on the others. This could really make a shift for the better and get the ridiculous 2-year contract model on the way out. With technology advancing as fast as it is and Samsung releasing new flagships yearly, do you really want to be stuck into a contract for 2-years. I sure don’t! Although this means we essentially finance our phones from T-Mobile instead of signing a 2-year contract.
In 2013 T-Mobile will offer cheap value plans, and what they’re calling “iconic devices” for just $99 with $15 monthly payments to go along with those unlimited 4G data plans offered from the company. Another benefit here is users can bring unlocked devices (like the Nexus 4) over to T-Mobile and enjoy lower value plans than the competition offers. T-Mobile stated 80% of their activations last quarter were these new value plans, so they expect an impressive and smooth transition next year.
Thoughts regarding T-Mobiles new plan? I just wish Google would buy T-Mobile already and start a mobile revolution. Yup, I just went there.