Newsletters
Technology, Discovery & Innovation NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Computing Digital Life Discovery Space More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Digital Life
Average Rating:
Rate this article:  
T-Mobile Turnaround: iPhone Is In, Contracts Are Out
T-Mobile Turnaround: iPhone Is In, Contracts Are Out

By Adam Dickter
December 8, 2012 9:02AM

Bookmark and Share
"T-Mobile needs to carve out a successful niche," said analyst Jeff Kagan. "Changing the basis on which they do business from postpaid to prepaid may work, and I hope it does. But it also could hurt T-Mobile if they don't do it right. There are already leaders in both prepaid and postpaid, so either way will be tough."
 



Struggling carrier T-Mobile USA is hoping 2013 will be a banner year as it gears up to merge with MetroPCS (if approved by the government), tosses out contract plans in favor of prepaid and gets ready to sell Apple's iPhone. It remains to be seen, though, if the fourth-place carrier can gain ground against its larger rivals and make it worthwhile for parent company Deutsche Telekom to stay in the important but highly competitive U.S. market.

T-Mobile CEO John Legere said at an investors conference in Germany that early next year the company will eliminate its contract plans -- which include the $70 unlimited data, voice and text plan launched in September -- with a discounted phone (most in the $199 range) in favor of plans in which customers pay the full price for phones but pay a lower price per month. If customers decide to cancel their plan they must reimburse T-Mobile for the remaining cost of the phone.

Details of the plan prices were not disclosed.

Finding a Niche

"T-Mobile needs to carve out a successful niche," telecommunications analyst Jeff Kagan told us Friday. "At this point I think this thinking could be successful if they market it well. And that is the problem. T-Mobile has not marketed well for a long time.

"Changing the basis on which they do business from postpaid to prepaid may work, and I hope it does. But it also could hurt them if they don't do it right. There are already leaders in both prepaid and postpaid, so either way will be tough."

T-Mobile is the last major nationwide carrier to be waiting for the iPhone, but Legere assured investors that his company will not be subject to volume sales commitments as part of its deal with Apple.

T-Mobile already serves about a million customers with iPhones who have purchased them elsewhere as part of its Bring Your Own Device Program, and Apple at the end of last month started selling the unlocked GSM version of the iPhone 5, which is compatible with T-Mobile's network.

Late To LTE

The iPhone 5, however, is capable of 4G long-term evolution data speeds, which would leave T-Mobile customers wanting since the carrier will just begin to roll out its LTE network next year. T-Mobile considers its current HSPA+ data speed 4G.

T-Mobile famously tried to merge with No. 2 carrier AT&T in 2011, but the Justice Department sided with consumer groups and other carriers in opposing the move, saying it would create too big an entity and drive prices up.

In third-quarter results released last month, T-Mobile said it lost 492,000 customers, compared with 557,000 in in the second quarter, but more than the same quarter of 2011, 389,000.

T-Mobile also said smartphones accounted for 77 percent of sales, which were up 28 percent year-on-year to 2.3 million units.
 

Tell Us What You Think
Comment:

Name:

Jake:

Posted: 2012-12-09 @ 9:03pm PT
@Lucy: That's so funny! I pay $26 a month for unlimited data, text, and 300+ minutes with Virgin Mobile. No contract.

lucy:

Posted: 2012-12-09 @ 11:53am PT
Hmm!!! What I think is that T-Mobile sucks. I'm a T-Mobile customer and can't wait to cancel the service with them. You buy a $100 monthly plan and end up paying almost $200. I don't know how they add so much to your bill (subscriptions, etc.) that you never asked for and on and on and on. I'm so tired of T-Mobile. Going to Verizon. At lest I can have a nice phone for an affordable price.



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Digital Life
1.   Android 'Fake ID' Puts Millions at Risk
2.   FTC Wants Fix for Mobile Cramming
3.   Facebook To Force Use of Messenger
4.   OkCupid Experiments with Daters
5.   BlackBerry Acquires Secusmart


advertisement
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Radical.FM's Freemium Biz Model
Online radio startup asks for donations.
Average Rating:
Facebook Social Experiment Irks Us
Secretive test was legal, but ethical?
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 

Mobile Technology Spotlight
Android 'Fake ID' Puts Millions of Users at Risk
Having this fake ID is nothing to brag about, even if you are a minor. The “Fake ID” Android flaw drops malware into smartphone apps. It can steal credit card data and even take over your device.
 
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

Navigation
Sci-Tech Today
Home/Top News | Computing | Digital Life | Discovery | Space | Innovation | Health | Science News
Environment
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.