Technology, Discovery & Innovation NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Computing Digital Life Discovery Space More Topics...
Build Apps 5x Faster
For Half the Cost Enterprise Cloud Computing
On Force.com
You are here: Home / Mobile Tech / T-Mobile To End Contracts, Sell iPhone
T-Mobile Turnaround: iPhone Is In, Contracts Are Out
T-Mobile Turnaround: iPhone Is In, Contracts Are Out
By Adam Dickter / Sci-Tech Today Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
DECEMBER
08
2012



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.

Read more on: T-Mobile, iPhone, AT&T, MetroPCS, LTE, HSPA+
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.

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.
MORE IN MOBILE TECH
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Russian Gang with Stolen IDs Hacks Hosting Company
In August, a Russian cyber gang obtained what researchers called “the largest cache of stolen data." Now, those hackers may be putting their ill-gotten gains to criminal use.
 
Dairy Queen Latest Retailer To Report Hack
Known for its hot fries and soft-serve ice cream, Dairy Queen just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 

Enterprise Hardware Spotlight
AMD's New FX Series CPU Breaks Processing Speed Record
The new FX-8370 processor from Advanced Micro Devices has set a record for silicon processor speed, the company announced. Overclocked, the eight-core chip was measured at 8722.78 MHz.
 
Intel Intros Lightning-Fast PC Processors
Call it extreme. Intel just took the covers off its first-ever eight-core desktop processor, which is aimed at hardcore power users who expect more than the status quo from their computers.
 
HP Previews ProLiant Gen9 Data Center Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 

Mobile Technology Spotlight
Rumor Mill Puts Mobile Wallet in iPhone 6
Apple is moving toward the mobile wallet world with its next iPhone. The tech giant has partnered with retailers, banks and major payment networks to make it happen, according to Bloomberg.
 
Will iPhone Finally Catch Up with NFC Mobile Payment Ability?
Apple's latest version of the iPhone may have a mobile wallet to pay for purchases with a tap of the phone. The iPhone 6 reportedly is equipped with near-field communication (NFC) technology.
 
Visual Search To Shop: Gimmick or Game Changing?
Imagine using your phone to snap a photo of the cool pair of sunglasses your friend is wearing and instantly receiving a slew of information about the shades along with a link to order them.
 

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.