T-mobile Introduces Month to Month Contracts

no-contract1

On August 6th, T-mobile will be introducing two new additions to their current competitive lineup of services. The first is the new parent-friendly Family Allowance, which we talked about yesterday (Yes, it was delayed due to some technical issues). The second new service should bring a lot of excitement to customers that hate 1 or 2 year contracts (or 3 like they have in Canada). Starting August 6th, T-mobile will be the first national carrier to offer month to month postpaid plans. It sounds like these plans will be very similar, if not the same, to T-mobile’s current offerings of individual, or family time plans, with or without MyFaves. Upfront costs will include an activation fee, and the full retail price of any phone purchased*. To us, this sounds like an extreamely customer friendly step by T-mobile, that we greatly appreciate. Credit checks will be required for this plan, however they will be the same as any 1 or 2 year contract credit checks. Unfortunately T-mobile@Home will not be avalible to customers that sign up for month to month contracts.

*For those that don’t want to spend hundreds on an unsubsadized postpaid phone, try picking up a T-mobile prepaid Nokia 2610, or a Motorola V195 for $29.99. Then just slip in your postpaid SIM card and your ready to go!

  • robak03

    So is this like flexpay…but backwards?

  • texan

    Its a postpaid month to month, just like if you had already finished your 1 or 2 year contract. Flexpay you pay up front every month post paid you pay at the end.

  • Peter

    Old News…

  • Shawn

    Robak,

    It is like flexpay but not prepaid

    Peter,

    This is not prepaid…like Flexpay, this is a new plan T-mobile will introduce starting July 6th

  • cyberjr

    now people will realize the real cost of the phone. this is just trickery! parents everywhere are going to go nuts. 200-300 every time kid loses his phone. wow…

  • Bryan T-Berry

    Why not just sign up for a FPM plan, skip the activation fee, skip the credit check, and be done with it? Either way your paying invoice on a handset. The only reason people sign any sort of contract agreement is to get a discount on a handset. Any customer who is approved for this likely has the money to pay for the plan up front with all the features they want, so wouldn’t FPM is still be the obvious choice? Maybe I’m missing something…

  • Joseph Singer

    If you lose a phone you pay full retail anyway. I’m not sure what your point is. This plan will be good for those who want to bring a phone they already have (like a Nokia N95) for brand new service, but don’t wish to commit to the service for one or two years which is necessary even on the lowest priced plans.

  • Roger Alford

    Credit check on a month to month?

    Why not just change FlexPay to make the person pay at the end?

  • Jonathan

    Bryan: A customer might opt for this option over FlexPay to avoid the hassle of pre-paying for all services.

    Roger: FlexPay is for people with no credit, or insufficient credit for T-Mobile to consider them an acceptable risk for monthly payments. If the customer pays up front for each month of service, though, T-Mobile gets the money first. If the customer doesn’t pay, T-Mobile knows _before_ the customer’s used the services. T-Mobile loses less revenue if the accounts are suspended or cancelled more promptly, so the risk is less for the company.

    I, for one, am glad that people will get to know just how much phones cost. I think people would be better off realizing that even that “free” phone isn’t free. It’s amazing the abuse that people cause by being careless. I bet they wouldn’t be so careless if that “free” phone cost a hundred or more dollars :)

    Also, a note on prepaid handsets: keep in mind that prepaid handsets are very heavily subsidized, and T-Mobile loses money on them. If too many people buy them for postpaid accounts, T-Mobile may have to change the equipment used for prepaid accounts. They’ve already permanently locked some of them, so they cannot be unlocked for use on another network. There ain’t no such thing as a free lunch…the cost gets passed to the customers at some point.

  • Mr.Z

    Uh… Tmo would not be the first with month to month post paid plans… AT&T already has this.. But, it’s good to see carriers realizing that some people dont need an equipment subsidy.

  • socalfrank

    I just signed up for the T-Mobile @ Home plan and even though I added 2 lines and bought the $50 router (which didn’t show a difference in price for 1 or 2 years, the rep forced me to sign a 2-year contract with a $200 penalty per line for cancellation. Not cool.

  • timmyjoe42

    I don’t see any mention of this on the website. I only see the flexpay, which is slightly more appealing because of the no activation fees.
    Will this no contract or flexpay work if I have one line under contract, and add a second line where I bring in my own phone? I expect the original phone will keep it’s original contract date, and the second line will be free of ETFs, right?

  • http://none lee

    if this things u say r true why r thet not on tmobile.com

  • Shawn

    The month to month contracts has been delayed due to technical issues. They should be out soon.

  • runtmasterflex

    There is a number of advantages of this over Flexpay, w/ the flexpay monthly contract you pay more than your postpaid counter parts for your monthly access fees. Not only that but some features are not available to flexpay customers such as callertunes and Hotspot@home. Not to mention the fact that you have to worry about putting money in your account to buy a ringtone, send an SMS/MMS if you don’t have a bundle or make an Intl. call.

  • http://lashotel.net Ronnie Langley

    not so gr8