T-Mobile officially getting the iPhone - as in Selling Directly

Discussion in 'Mobile Devices & Gadgets' started by SunnyD, Dec 6, 2012.

  1. ImDonly1

    ImDonly1 Platinum Member

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    They will offer phone financing. So you pay a certain amount each month until the phone is paid off. Seems the same as before, except once you pay the phone off your monthly cost is lowered.
     
  2. TuxDave

    TuxDave Lifer

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    I read that as just going 100% unsubsidized which ended up being $20/month cheaper (and financing so you can get something that resembled a subsidized plan except that you don't pay the increased monthly rate forever). For me, that's the #1 reason to go to T-mobile. I really like the new plan. If the value plan is even cheaper than that, oh boy!
     
  3. dagamer34

    dagamer34 Platinum Member

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    So many stories about how "T-Mobile is ending subsidies" which is mostly inaccurate and mostly link-baiting. A far more accurate, though dull headline is "T-Mobile separating phone subsidy from monthly plan cost" which isn't as short, not as snazzy, but a lot closer to the truth.
     
  4. bearxor

    bearxor Diamond Member

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    I wonder when iPhone users on TMobile can finally start taking advantage of Visual Voicemail.
     
  5. dagamer34

    dagamer34 Platinum Member

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    My guess is that T-Mobile doesn't start selling the iPhone until they've got a sizeable 1900Mhz HSPA+ and LTE footprint in most major cities. Using an iPhone on EDGE is not enjoyable.
     
  6. Ravynmagi

    Ravynmagi Platinum Member

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    Don't really see what T-Mobile is switching to still a form of "subsidizing" though. You'll be put on a payment plan, that isn't subsidizing.
     
  7. lothar

    lothar Diamond Member

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    They won't.
    Unlike the idiots at Sprint that stupidly mortgaged their future on the iPhone and won't make a profit on it until 2015(4 years from when Sprint signed their deal with Apple), this deal will be accretive to T-Mobile's EBITDA and operating Free Cash Flow earnings.

    In other words, T-Mobile will report a profit on this deal starting by the end of the 2014 year.
     
  8. lothar

    lothar Diamond Member

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    Good news. :)
    The death of the crappy US subsidy model begins?
     
  9. lothar

    lothar Diamond Member

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    It's not subsidizing.
    With Verizon, AT&T, or Sprint...Whether you sign a contract or not and get a new phone, you still pay the same monthly bill.
    With T-Mobile's new plan, you have the option to pay out of pocket for a lower monthly bill, or pay a higher monthly bill if you want to buy their phone at a discount to finance it.

    T-Mobile's new version is not a form of subsidizing because you're paying the full cost of the phone eventually plus interest.

    Put it this way...
    On T-Mobile's old plan: Buy Nexus 4 at $200 with contract price + pay an extra $20/month on top of your regular phone bill for the 24 months.
    On T-Mobile's new plan: Buy a Nexus for $350 at the Play Store and pay your regular phone bill for 24 months.

    $200 + $480 extra to finance that Nexus 4 on the old plan or pay $350 with the Value plan once and be done with.

    Go to T-Mobile's website and compare the Classic vs. Value plans.

    On the Value plan(BYOD): T-Mobile® SIM Card + Unlimited Value—Talk + Text and Unlimited Nationwide 4G $69.99 per month.

    Versus on the old Classic plan with subsidized phones: T-Mobile® SIM Card + Unlimited Value—Talk + Text and Unlimited Nationwide 4G, $89.99 per month. And you still have to pay whatever the subsidized pricing of your phone is in addition to that $20/month extra for 24 months.
     
  10. magomago

    magomago Lifer

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    I hope it doesn't kill our great speeds :(
     
  11. TuxDave

    TuxDave Lifer

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    Really? Anyone who has that immediate reaction strikes me as a little odd in the head.

    Anything that helps T-mobile's popularity has a chance to kill your "great speeds". You can say that the Nexus 4 risked your great speeds because the most popular thing to do was to buy the cheap phone and go on an unsubsidized plan like T-mobile. Same thing with the Galaxy Nexus when it was cheap.

    Can't have your cake and eat it too. Unless you're willing to pay T-mobile a TON more than what you are now, it's only inevitable that you'll have to start sharing your bandwidth if you want T-mobile to survive. And to survive, it has to attract more customers.
     
    #36 TuxDave, Dec 7, 2012
    Last edited: Dec 7, 2012
  12. lothar

    lothar Diamond Member

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    Except the Nexus 4 and Galaxy Nexus doesn't sell millions of units like an iPhone does.
     
  13. TuxDave

    TuxDave Lifer

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    And T-mobile sells the SGS3. I heard that's a pretty popular phone too. :p

    (I hope I'm right on that, didn't actually check)

    It's a really silly argument.
     
  14. abaez

    abaez Diamond Member

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  15. TuxDave

    TuxDave Lifer

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  16. SunnyD

    SunnyD Belgian Waffler

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    Those Value Plans already exist. They're approximately $5-10 cheaper per month than their subsidy counterparts.

    They have existed for about 2 years now. What T-Mo is doing is streamlining, they say that about 80% of their new activations over the last year have been on the Value Plan segment anyway.
     
  17. dagamer34

    dagamer34 Platinum Member

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    There are plenty of iPhone 4/4S devices floating around on craigslist and eBay from people who upgrade every year on AT&T. The beneficial thing is that someone will be able to buy that device and get official support on T-Mobile and Apple. You'll get Visual Voicemail. You won't have to worry about setting up the APN. FaceTime should work out of the box. And on and on.

    T-Mobile will be able to support the iPhone without having to pay it's stupidly expensive subsidy. It's a brilliant plan that avoids them going under because they didn't sell as many phones as they committed to like Sprint did (and I think will be their undoing).

    Put another way, 5% of all T-Mobile customers want the iPhone (1.7/33 million) so badly that they are willing to put up with EDGE speeds. How many more customers do you think they'll get when they have access to DC-HSPA+ instead at amazing prices?
     
  18. lupi

    lupi Lifer

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    That's the thing, they are a little cheaper if you're happy getting a used or not so recent release phone that you buy; but they're not nearly cheap enough for all those that max out their handset renewals compared to standard cost structures. If multiple networks went this rouyte I could see if sticking, but this sounds more like them wanting to go as a national pay as you go vendor with its own network.
     
  19. magomago

    magomago Lifer

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    Oh i know its completely illogical :D

    The reality is that most everyone who wants an iphone probably has one; we've gone through 5 generations of the phone, where the previous 2 (Iphone5, and iphone4s) have been on the top 3 carriers. I don't imagine a mass exodus of people to tmobile for the iphone it is now ubiquitous among all the major carriers.

    I disagree with you about the Nexus 4; no one outside of the online world that I know is aware of this phone.

    Anyways you are smart enough - i switched from Classic after almost 10 years to Value because I realized how much I could save, even if I bought a full price phone. And a Nexus4 (Or Galaxy Nexus as I was considering earlier) just makes the deal even sweeter.
     
  20. dagamer34

    dagamer34 Platinum Member

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    People won't switch because of the iPhone, they'll switch because of the significantly cheaper plans. And in the future, it will likely be because of the ability to rollout 15x15Mhz and 20x20Mhz LTE/LTE-Advanced which none of the other big 3 have talked about yet because their spectrum is disjointed. They are likely to have the fastest 3G and 4G LTE networks, far more international roaming agreements because of 1900Mhz HSPA+, and hopefully a wider selection of phones as well. Like the HTC One X but hate AT&T? Bring over that HTC One X, it'll work just fine. Or once Verizon starts pushing AWS LTE, you'll be able to use those phones too because they aren't SIM locking their phones anymore. It's a serious win/win for T-Mo.
     
  21. abaez

    abaez Diamond Member

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    I don't think the unsubsidized idea will catch on as much as people seeing that if they are off contract they should be paying less each month. It's bizarre to think Verizon/ATT/Sprint have gotten away with this for so long.
     
  22. Mopetar

    Mopetar Diamond Member

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    I think the changes to the subsidy model will be a bigger deal for Google than anyone else. If you can buy a Nexus device at cost (Assuming Google doesn't add much if any markup) as opposed to any other device, it makes the Nexus a much more attractive proposition.

    The only potential problem is that it will drive business away from T-Mobile. It was already a better deal in some cases for people to buy their own device and pay a lower monthly rate, but a lot of people still went with the cheaper upfront cost at a greater cost over the duration of the contract. That people weren't gravitating towards this option would suggest that it doesn't work. There's probably a psychologist who can tell us that people tend to prefer a lower upfront cost over a lower total cost over time; either that or people in the U.S. are just generally terrible at math.

    It will be interesting to see how this plays out.
     
  23. TuxDave

    TuxDave Lifer

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    Surprising or not, the Nexus 4 was actually on the radio. Sure the name is a little different, it's just the "new Google phone" and people get upset that "it doesn't have 4G! (are you going to teach them all how to enable it?)". I think the major barrier that is still exclusive to the online nerd crowd is how to acquire it (what is this Play store?). But yes, the Nexus 4 impact is definitely smaller than the iPhone.

    But really I was pointing out that unless you have a reason to set a specific threshold on how much an idea attracts T-mobile customers (5% customer growth OK, 15% BAD!), then... well I guess you know how I feel about the "oh this is bad news for T-mobile users" argument. I think the iPhone alone won't bring T-mobile to riches. The restructuring of plans would probably have a bigger impact and "harm existing T-mobile users" more.
     
  24. Aikouka

    Aikouka Lifer

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    I'm a bit confused as to why you don't think this is a subsidy.

    One problem is that your statement on having to pay the same monthly bill is not correct. I know that at least Verizon offers an off-contract plan, but the problem is that it's really not worth it as the discount is only $10. $650 > ((24 * $10) + $200)

    Honestly, it's not that T-Mobile isn't providing a subsidized option, but it's rather that T-Mobile is providing a TRANSPARENT subsidized option. Other carriers don't provide this information and that allows them to continue to charge you the exorbitant rates regardless of whether you're on contract or not. Essentially, it's an incredibly dubious way of milking money out of your customers that don't know any better.

    EDIT:

    I like the transparency that T-Mobile is showing here, and I really hope this ripples through and causes other carriers to do it, or be forced by some governing agency to do it. Honestly, I highly doubt that we'll get the prior, and you'll probably only see it with the latter.
     
  25. sjwaste

    sjwaste Diamond Member

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    Can you check t-mobile's coverage using an unactivated SIM? I have a t-mobile sim, but it's not activated and I don't want to buy a plan just to see if my wife's iphone will get 3G service at home.