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

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Will this even matter?

Red_Minx

Jul 20, 2011, 8:13 AM
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.
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Menno

Jul 20, 2011, 10:20 AM
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 see Tmobile go
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Jayshmay

Jul 20, 2011, 10:27 AM
I don't understand why a contract is still required when the customer would be paying the FULL retail pruce over a 20-month period.
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Jellz

Jul 20, 2011, 10:48 AM
Because if you don't have a contract, you could just cancel without penalty and get out of the monthly payments for the phone?
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Jayshmay

Jul 20, 2011, 10:57 AM
Upon cancelling the customer would auotmatically have to pay the remainder of the balance on the phone. That simple!
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Red_Minx

Jul 20, 2011, 11:23 AM
otherwise known as a prorated etf.... If they were to instantly leave they have to pay $300 (assuming $15 a month for 20 months) and then it would go down $15 a month. That is pretty much how etfs work right now.
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Jayshmay

Jul 20, 2011, 11:25 AM
Isn't it actually $10/mo that it goes down? I'm with Vzn and have a smartphone.
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Red_Minx

Jul 20, 2011, 11:36 AM
Yes it is usually $10 a month, but what I'm saying is that is in essense what everyone does already. They have to have the contract or everyone could just say "I don't know what your talking about! I paid $250 for my phone! I was never told I had to pay $xx a month for the phone!! I paid in full up front!!" People have to sign contracts because you can't just pinky swear or go by someones word anymore. They will say, yeah I understand all that gimme my phone and then 4 months later when they try to leave will start screaming and stomping that they didn't know. Sucks but that is the way things are.
To put it another way - Say you sold a car. The guy gave you 2k up front and then swore he would pay 150 a month and if he "moved" he wo...
(continues)
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80dollarcarcharger

Jul 21, 2011, 9:26 AM
But I think what he was referring to was the fact that it's always been a "service agreement". On the even more plus, customers still signed saying that they would pay the certain amount for so many months. A service agreement is a contract.

The reason for a contract now is because customers are saving so much money, if people switch to these plans, they will be getting a lower MRC. If they aren't buying any phones, this is a loss of revenue but it will be worth it if the customer is going to stay for two years
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Ochi

Jul 20, 2011, 2:16 PM
I work for t-mobile and the reason for the 2 year agreement has been changed to accept this new standard. That signing a 2 year agreement doesn't entitle you to a discount or subsidized price on a device. what you are signing is a "2 year commitment" to stay with t-mobile to get the best price possible on any carrier that is not prepaid bassed and still drives inovation of technoligy and brings up to date phones to the table. You might ask... but what about at&t merger? well whether this goes trough or not t-mobile still has to drive churn and cant just do nothing…
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