T-Mobile Phasing Out Phone Subsidies
The CEO of T-Mobile USA today announced that the company plans in 2013 to stop offering traditional service plans that include a subsidy to cover the cost of the cell phone. Instead, the company will only offer its "Value" plans, which are typically cheaper than traditional postpaid monthly plans offered by other carriers. Customers can still get a phone for a low-up front price and pay over time with a monthly installment plan. Unlike a traditional phone subsidy, the installment plan ends automatically when the phone is paid off. The Value plans make the phone and service costs separate and transparent.
AT&T CEO Believes Phone Subsidies Will Eventually Vanish
Phone subsidies and two-year contracts are on their way out the door, according to Ralph de la Vega, AT&T's CEO of mobile and business solutions. "I think it is one of those options that is going to go away slowly," said de la Vega to Recode, "not because we insist on it but because customers will choose it less often." AT&T has made changes recently to limit the availability of subsidies and contracts.
Verizon Now Requires Edge Customers to Pay Off Phone
Verizon Wireless today announced a change to its Edge equipment installment plans. Beginning May 31, Edge customers will need to pay off their device in full before they they can upgrade to a new phone.
Verizon Kills 2-Year Plans, Bumps Activation Fee to $30
Verizon Wireless no longer offers two-year contracts with device subsidies, and has raised the cost of activating new devices by $10. The changes, confirmed by Fierce Wireless, were put into effect January 5.
Sprint Weighing a Change to Phone Subsidies
Sprint CEO Marcelo Claure said the company may scrap phone subsidies at some point down the road. Speaking to investors, Claure noted that its installment and leasing programs are beginning to gather steam, which make the possibility of change much simpler.
Traditional plans are like leasing cars
Until then, comparison of regional population dense carriers who offer cheap service to national carriers who...
What happens to National Retail?
Truth in Advertising is News?
Tmo is like escort that won't kiss on the lips because they've drawn some arbitrary moral line that no one cares about while she is getting Donkey Punched.
Woo woo la de flipping da...
So, they have done the right thing and are not hiding the phone cost in the service charges. What do they want? A cookie?
Tmo is like escort that won't kiss on the lips because they've drawn some arbitrary mora
They already have this option, but I predict that there will be an increase in the availability of fairly-priced unlocked phones in random retail stores when this becomes the standard.
If they made a complete separation....the carrier not being respo...
This is how the industry should have been the whole time.
Unfortunately, it'll be an uphill battle to get people to accept this, and it already has been. Customers are so accustomed to "free" and "cheap" phones that they don't realize what a phone costs, and we still have people that take Classic plans, even though the plan is more expensive, just to to get the "discounted" phone.
Now they need an advertising campagin
As sales rep for tmo