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T-Mobile Phasing Out Phone Subsidies

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This is how the industry should have been the whole time.


Dec 6, 2012, 6:22 PM
It presents the cost of the phone clearly instead of offering "free" phones, it allows customers to tailor the monthly payment according to their budge(higher end phones have higher payments, etc), and the customer's bill gets cheaper when it's paid off. Customers also aren't held to a certain time frame for a new phone. Just pay off the old one and get a new one whenever you want.

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.

Dec 6, 2012, 6:40 PM
Your mostly correct. This is the way it should have been. However they target low income naturally with the cheap prices. With no free phones that group they target is likely to go to the next one who will offer free phones. If a carrier who targets higher income customers offered this they may have some more success. Time will tell though.

Dec 7, 2012, 7:32 AM
Metro has done this from the start (except the financing part) and they don't have any issue targeting the low end of the market. I think it's great. My $30 phone bill doesn't hurt either.

Dec 7, 2012, 1:59 PM
That would only be an issue for "good" phones. Those cheapo ghetto phones sold by tracfone and others for $20 don't actually cost much more than that wholesale.

Dec 7, 2012, 4:20 PM
"High income" customers tend to be the ones that want the most free stuff, because they've been coddled by AT&T and Verizon for so long and they don't realize that "free" Droid came out a year ago and Verizon made its money back in a few months.

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