T-Mobile's New Plans Replace Phone Subsidy With "Equipment Installment Plan"
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.
I love ya T-Mobile but man these plans can by cryptic...
Will this even matter?
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...
If I was a T-Mobile dealer
Even More Plus was a better deal
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.
The Plans are the Step in the right direction
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 ?
I've always wondered about this
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.
Grandfathered on old deals with TMO, wonder if I should switch?