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T-Mobile's New Plans Replace Phone Subsidy With "Equipment Installment Plan"

Article Comments  23  

Jul 20, 2011, 12:03 AM   by Rich Brome   @rbrome
updated Jul 20, 2011, 12:08 AM

T-Mobile USA today announced new "Value" plans that replace the traditional phone subsidy - a payment for your phone hardware hidden in your monthly service pricing - with a more transparent phone "down payment" and agreement to "pay it off over 20 months with ... interest-free payments." The monthly phone payments are now referred to as "Equipment Installment Plan" and end after 20 months, unlike a traditional phone subsidy, which continues even after a phone is paid off. Customers are also able to bring their own phone and pay no down payment nor Equipment Installment Plan. Detailed service plan options were not announced, but the company provided an example where a two-line family plan would run about $100/month for unlimited voice and text, plus 2GB of high-speed data, throttled to lower speeds after 2GB. A phone such as the new HTC myTouch 4G Slide would require a $250 down payment plus 20 additional monthly payments of $15 each. Therefore the example two-line family plan would run about $130 including two phone payments. The new Value plans still require a two-year contract. The new plans will be available starting July 24. T-Mobile will continue to offer its current Even More plans, now called "Classic" plans. It will also continue offering no-contract plans under the Monthly4G brand, as well as Pay As You Go plans. The company first challenged the phone subsidy model when it introduced "Even More Plus" plans in late 2009, which offered a post-paid monthly service plans that were cheaper and contract-free when the customer paid full price for the phone up front.

more info at T-Mobile USA »



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This forum is closed.


Jul 20, 2011, 12:34 PM

I love ya T-Mobile but man these plans can by cryptic...

Is it just me or as time progresses do these newer T-Mobile deals just get more and more difficult to comprehend? How do they come up with this stuff? I do have to hand it to them but Sprint, Verizon & AT&T have easier to understand plan/feature costs. For example with a company like Verizon at least you know you'll be getting ripped off monthly up front. Laughing
They also have the "classic" plans which are the basic, get phone discout pay XX amount for your bill, and done.

Jul 20, 2011, 8:13 AM

Will this even matter?

The big question is will any of this matter if the merger is allowed to go through. I can't imagine AT&T would continue with all of these plans.
Yep, these plans will be the first thing to go.

Existing customers will be able to keep the plans, but when they get a new phone (or if they want to switch plans) they'll have to change.

Plans like this are another reason I'll be really sad to...

Jul 20, 2011, 9:00 PM

If I was a T-Mobile dealer

Anyone care to chime in on how T-Mobile comps you guys on plans and subsidy? I am curious to see how that works and if it is even better than standard 2 year pricing.


Jul 20, 2011, 4:40 PM

Even More Plus was a better deal

Under Even More Plus, I paid full price for my Vibrant ($499.99 at the time). They financed it for 20 months, no interest. I made the first $25 payment up-front, followed by $25 payments for 19 months. No Contract, no termination fee, and service was $20/month cheaper than the comparable subsidized plan with a two year contract.

Now they're offering the same thing, except they're requiring a two year contract and charging a bigger up-front down payment (instead of 1st payment up-front).

Still better than a subsidized two-year contract, but not as good as before.

Jul 20, 2011, 2:11 PM

The Plans are the Step in the right direction

All of the new plans offer customers The same - or more, for less. The data plans are at least $5.00 less than they were before, as are the texting features, and the talk minutes cost less too.

Think about it, no discount on handsets means no required data feture, either, so all of that garbage is out the window.

The new plans are awesome.

Should I also mention 10 Gigabytes has a cost of $55.00 now ?
Yes it is a good deal! Questionable though if I am currently on a $70 a month grandfathered deal for 2 lines (1000 talk/unl text/web for feature phones) would we have to pay a "migration fee" and re-up my contract for 2 years to get the $100 plan. I ...

Jul 20, 2011, 4:54 AM

I've always wondered about this

So With sprint and all of the major companies, we pay a higher monthly bill compared to mvno's because are phones are subsidized is what the excuse was. I have paid off my phone and have been off contract for about two years now. I haven't used any upgrade so I always though, wouldn't it only be fare for them to lower my cost unless I get a new phone?

So if I read this correctly, I would have a low monthly bill unless I get a subsidized phone, correct? And if I do get the phone and after I am finished paying it off, my monthly bill will come down?

If so, I might just be jumping over to T-mobile lol.

I hope Sprint adopts this and I will stay.
Basically, they are doing away with rebates, and yes your monthly bill will be lower. Also, u would not be "required" to have a data package with the new plans for smart phones.
It won't be long when all the carriers will have to follow T-Mobile in some sort of way.

Jul 20, 2011, 1:18 PM

Grandfathered on old deals with TMO, wonder if I should switch?

I'm debating dumping my current grandfathered deal. Currently have Familytime 1000 for $50 with Free Unlimited MyFaves for both lines, Family Messaging for $10 & T-Zones on both lines for $6 each. Grand total of my plan is $72 per month with AAA corp discount. This new plan would cost me $100 for two lines or $28 a month more but I like the idea of unlimited everything & am tired of the phone limitations of T-Zones. Confirmed with TMO Rep that the web of this plan will work with ANY GSM Phone (Windows, Blackberry, Android, Symbian, anything). May be better positioned with a plan like this for the coming ATT merger than with my "preferred" (free) features like myfaves that could be stripped at any time or with ancient web service like T-Zone...
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