T-Mobile USA to Cease Offering Subsidized Device Pricing Options in 2013

tmobile iphone unlimited unlockedJust as it announces that it will begin offering Apple products, presumably including the iPhone and iPad, next year, T-Mobile USA has also revealed that it will be restructuring the way it sells to customers by eliminating device subsidies and focusing on lower monthly plan costs. The plans were announced at Deutsche Telekom's annual investor conference today and noted by Fierce Wireless.

Currently T-Mobile offers Classic plans that subsidize the device and require a two-year contract and Value plans that let customers pay the full cost of their smartphones or pay it off in monthly installments in exchange for lower monthly plan rates. Legere said that in 2013 T-Mobile will eliminate its Classic rate plans that include device subsidies and instead only offer Value plans to customers.

Under one example for "the most iconic device in the world", Legere noted that customers might pay $99 upfront and then $15-$20 per month for 20 months on top of their monthly plan in order to pay off the full cost of the device. With the customer being responsible for the full cost of the device, T-Mobile can offer lower base plan pricing.

Legere did not provide specifics on the company's plans to offer Apple products, which was announced earlier today. However, he did say that when the company launches Apple's products, it will be dramatically different. He also said that T-Mobile had not made a volume commitment to purchase Apple products on size of what Sprint Nextel has committed to "or anything close to it." Sprint last year inked a four-year, $15.5 billion deal to sell the iPhone.

T-Mobile will become the last of the four major U.S. carriers to offer the iPhone, joining AT&T, Verizon, Sprint and a host of smaller carriers that have partnered with Apple on the device.

Top Rated Comments

MJedi Avatar
135 months ago
Depending on how much the monthly plans are, this might a good way to attract customers. Your monthly plans SHOULD be lower if you use an unsubsidized phone. Isn't the point of a contract is that you pay for the phone over the 2-year contract? And when the phone is paid off, your monthly should go down.

Not at AT&T or Verizon.
Score: 29 Votes (Like | Disagree)
ixodes Avatar
135 months ago
This ought to prove interesting.
Score: 20 Votes (Like | Disagree)
stayblunted Avatar
135 months ago
just back from making a great salami sandwich and i read this! im already on tmobile w. my unlocked iphone 4s in nyc. this is awesome for people who want to save money. its my birthday today so I feel like its a coincidence
Score: 19 Votes (Like | Disagree)
Westside guy Avatar
135 months ago
This is a great thing for US consumers... but I'm not sure they're going to recognize that fact.

----------

Give me a pay-per-voice-minute, unlimited text and unlimited data plan, and I'm there.

Their $30/month, 100-minute voice plan (only available on the web) is essentially this. I believe if you go over 100 minutes in a month the cost is 10 cents/per minute.
Score: 13 Votes (Like | Disagree)
dashiel Avatar
135 months ago
I'm not really sure how this changes anything so instead of paying $80/month you pay $60/month for your service + $20/month for the device!?!?!

They already address the difference in the handset costs with the amount they charge for the handset hence why a 64GB iPhone 5 costs considerably more on a subsidised contract than a lesser handset.
At the end of two years you’re paying $60 a month, currently you would continue to pay $80 a month despite having “paid off” the phone. So if you’re the type of customer who likes upgrading more frequently the net result is the same, if you couldn’t care less and keep your phone for more than 2 years you end up ahead of the game.
Score: 12 Votes (Like | Disagree)
Allenbf Avatar
135 months ago
just back from making a great salami sandwich and i read this! im already on tmobile w. my unlocked iphone 4s in nyc. this is awesome for people who want to save money. its my birthday today so I feel like its a coincidence

Happy Birthday.
Score: 9 Votes (Like | Disagree)

Popular Stories

iOS 16

Apple Releases iOS 16.4 With New Emoji, Safari Web Push Notifications, Beta Changes, Voice Isolation for Calls and More

Monday March 27, 2023 10:03 am PDT by
Apple today released iOS 16.4, the fourth major update to the iOS 16 operating system that initially came out last September. iOS 16.4 comes two months after the launch of iOS 16.3, an update that added Security Keys for Apple ID. iOS 16‌.4 and iPadOS 16.4 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. It can take a few minutes...
iOS 16

iOS 16.4 Will Add These 8 New Features to Your iPhone

Sunday March 26, 2023 8:06 am PDT by
Following nearly six weeks of beta testing, iOS 16.4 is expected to be released to the public as soon as this week. The software update includes a handful of new features and changes for the iPhone 8 and newer. To install an iOS update, open the Settings app on the iPhone, tap General → Software Update, and follow the on-screen instructions. Below, we have recapped eight new features and...
apple mixed reality headset concept by david lewis and marcus kane

Some Apple Employees Seriously Concerned About Mixed-Reality Headset as Announcement Draws Closer

Sunday March 26, 2023 8:25 am PDT by
Some Apple employees are concerned about the usefulness and price point of the company's upcoming mixed-reality headset, The New York Times reports. Apple headset concept by David Lewis and Marcus Kane Initial enthusiasm around the device at the company has apparently become skepticism, according to eight current and former Apple employees speaking to The New York Times. The change of tone...
iOS 17 on Phone Feature

Gurman: iOS 17 to Provide Several 'Most Requested Features'

Sunday March 26, 2023 6:05 am PDT by
Apple changed the strategy for iOS 17 later in its development process to add several new features, suggesting that the update may be more significant than previously thought, Bloomberg's Mark Gurman reports. In January, Gurman said that iOS 17 could be a less significant update than iPhone updates in previous years due to the company's intense focus on its long-awaited mixed-reality...
apple tv 4k red image

Apple Releases tvOS 16.4 for Apple TV 4K and Apple TV HD

Monday March 27, 2023 10:00 am PDT by
Apple today released tvOS 16.4, the fourth major point update to the tvOS 16 operating system that came out last September. Available for the Apple TV 4K and Apple TV HD, tvOS 16.4 comes two months following the release of tvOS 16.3. The tvOS 16.4 update can be downloaded over the air through the Settings app on the ‌‌‌‌Apple TV‌‌‌‌ by going to System > Software Update....
Steve Jobs Theater dusk

Apple Reportedly Demoed Mixed-Reality Headset to Executives in the Steve Jobs Theater Last Week

Sunday March 26, 2023 5:53 am PDT by
Apple showcased its mixed-reality headset to the company's top 100 executives in the Steve Jobs Theater last week, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained that the "momentous gathering" is a "key milestone" ahead of the headset's public announcement planned for June. The event was intended to rally Apple's top members of...
Apple Music Classical

Apple Explains Why It Launched an iPhone App Dedicated to Classical Music

Monday March 27, 2023 8:54 pm PDT by
Apple today published a support document explaining why it decided to release a standalone Apple Music Classical app for classical music. In short, Apple says the app was designed to support classical music's complex metadata:Classical music is different. It has longer and more detailed titles, multiple artists for each work, and hundreds of recordings of well-known pieces. The Apple Music...
iPhone 15 Pro Buttons CAD Leak

iPhone 15 Pro Low-Energy Chip to Allow Solid-State Buttons to Work When Device is Off or Out of Battery

Wednesday March 29, 2023 1:54 am PDT by
The iPhone 15 Pro and Pro Max will use a new ultra-low energy microprocessor allowing certain features like the new capacitive solid-state buttons to remain functional even when the handset is powered off or the battery has run out, according to a source that shared details on the MacRumors forums. CAD-based render of new solid-state buttons on iPhone 15 Pro models The source of this rumor is ...