Postpaid No Annual Contracts Coming Tomorrow?

Posted by Shawn On October - 6 - 2008

no-contract

Update: This will start on October 8th, not tomorrow as previously thought.

How many of you remember 2 months ago when we broke the news that T-Mobile was planning on introducing month to month contracts? Originally scheduled for a release on August 6th, month to month contracts suffered from some sever technical difficulties and were delayed, with a release date to be set. Rumor has it (and we haven’t confirmed) that T-Mobile will add month to month contracts to their line-up on October 7th. Why would you ever sign a contract, if you can just get on a month to month plan? Well on this no-contract plan, T-Mobile will not subsidize phones as they do if you sign a one, or two year contract. That means you will be paying that really high price you always see in tiny print, right below the much more appealing price that you get when you sign a 2 year contact. Details anyone?

·       Postpaid monthly rate plans will be modeled after current
postpaid rate plans including single line, FamilyTime, and myFaves.
T-Mobile @Home rate plans will not be available this time.

·       Both new and existing customers can sign up for the new
Postpaid No Annual Contracts rate plans. Existing customers who would
like to switch to these new rate plans are still required to fulfill
their terms of their existing contracts if applicable.

·       Annual contract agreements are not required for customers who
sign up for these rate plans, but Activation Fees will still apply and
customers will be required to pass credit checks and meet the same
credit requirements as 1 year and 2 year postpaid customers.

·       T-Mobile will also not offer any handset discounts for new
activations of these rate plans. However, dealers have complete
discretion on the pricing they offer on handsets.

Is the high price of phones and missing out on those wonderful ETFs worth the freedom?

19 Responses to “Postpaid No Annual Contracts Coming Tomorrow?”

  1. Caseybea says:

    OK, I understand that if you’re a new tmo customer, why you would sign up for this– no 2-year contract, etc, but still able to get a plan and a decent rate, etc.

    But why on earth would existing customers move to this, once their contract is up (like mine was– for YEARS– before I signed up for a G1– oops).

    I guess I’m not getting it.

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  2. motofiend3030 says:

    I wouldn’t believe that “complete discretion” thing at all. For the business model to work the offset has been (for Flexpay) invoice cost for phones, what they actually cost and not the unrealistic subsidized costs that are offset by a contract agreement. Because of our low price points the company has always been fairly restrictive in regards to overrides and I really doubt that will change anytime soon. If you want the benefit of no commitment you should expect to pay a little more for the phone as a means to achieve that convenience plain and simple. Keep in mind this is coming from someone who’s so impulsive I GLADLY spend nearly $700-$1000 on phones each year. Just a heads up I guess.

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  3. Autumn says:

    Besides paying later rather than earlier and being required to pass a credit check, what difference is there to month-to-month over monthly flexpay?

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  4. cyberjr says:

    i too am not sure the difference? flex pay prime is when they opt out of the contract, pay full price for the phone, but pay a control charge(unless they use a debit or credit card).

    IS the cost of subsidizing the phone and returns and warranty outweighing the lenght of contract? why else would they go down this path.

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  5. Texan says:

    @Caseybea

    Because whenever your less than a year left on your contract if you swtich rateplans (drop a line from a family and go to a single) you have to sign a new contract extention.

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  6. joey says:

    Hell yeah worth the Freedom. Ppl just pay for a high end device with your carrier freedom…..skys the limit.
    Just to note my contract is open since i never renewed it and i always used factory direct device.

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  7. Nick says:

    I just want the option to switch rate plans at anytime without a contract like Verizon Wireless has but still have the option to “earn” a handset upgrade like they have. If I do a discount, I sign a 12 or 24 month contract. If I renew my plan, I don’t resign. T-Mobile is just making this overly complex because they don’t want to offer real TRUE contract-free options to existing customers like Verizon Wireless.

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  8. Betito says:

    I’m trying to understand the difference between this and Flexpay month to month? Is it the control charge fee or something else?

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  9. TeXan says:

    @nick thats why they are doing this

    @Betito flexpay you pay at the beginning of the month and you have some limitations on some features that can be added. Also things like having to pay for the next month if you want to add a feature.

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  10. Ashandri says:

    I’d say this is more like a ‘30-day-contract’. Sounds great initially, however, could be the beginning of the end to ‘grandfathering’; meaning the TMo could up your rates at the end of your current ‘contract’. I have a 1500 minutes @ $39 per month plan now, a rate that can’t be touched by any carrier, including TMo, these days. If I went month-to-month, I’m only locked in for 30 days as opposed to 24 months.

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  11. TMOMan says:

    This go live on the 8th. I read about it today on the internal news page.

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  12. mingkee says:

    I may go for zero contract, and get FamilyTime Plan
    but I have to figure out which one is the cheapest
    I don’t need any new phone, as I have a good number in inventory

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  13. I Want The Google Phone says:

    With flex pay you are often required to pay 1 month or even 2 months in advance to add a line or Change to a family plan or add any features. The month to month Post pay will act just like a post paid account with contract. you can add and take things off at anytime without the restrictions.

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  14. TeXan says:

    @Ashandri thats not true you are not locked into a price for just 24months i have had people who still have Voice streem wireless plans thus WAY past 24months.

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  15. John says:

    You know what I’d rather have than re-vamped postpaid plans?

    Revamped pre-paid plans. Leap/Cricket just put forward a great tiered model that I’d as a basis for pre-paid plans:

    Option 1) $0/day, pay per minute, pay per message, t-zones only (same as the current pay as you go plan)

    Option 2) $1/day, unlimited m2m, unlimited n&w, pay per minute for other calls, pay per message, t-zones only (same as the current pay per day plan)

    Option 3) $1/day, pay per minute for all voice, unlimited messaging, unlimited web only (same as the sidekick plan, expanded to any non-tethering phone)

    Option 4) $2/day, unlimited m2m, unlimited n&w, pay per minute for other voice calls, unlimited messaging, unlimited web only (non-tethering phones only)

    Option 5) $2/day, pay per minute, pay per message, unlimited total internet and hotspot (usable on data cards, all phones)

    Option 6) $3/day, unlimited m2m, unlimited n&w, pay per minute for other voice calls, unlimited messaging, unlimited total internet and hotspot (usable on data cards, all phones)

    Option 7) $4/day, unlimited voice, unlimited messaging, unlimited total internet and hotspot (usable on data cards, all phones)

    I’d much rather see those options out there for people who don’t want a contract, than some variation of the post-paid plans. I doubt it’ll happen, but that’s what I’d like to see.

    (why would you use data cards on the last 2 options? maybe you’re swapping your SIM back and forth between a phone and a data card)

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  16. Galen20K says:

    Yeah I think I’ll stay with the regular Contract, I’m still on the GET MORE 3,000 anytime Minutes with Catherine Zeta Jones for $49.99 and have been for years. I’d hate to have to switch that just because I want no contract which I havent Had a Contract for YEARS until I ordered the G-Phone. All is stll GOod, I LOVE T-Mobile!

    - D

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  17. punkzanyj says:

    I don’t think I’d go with this, there are too many cons:

    Con#1 paying more upfront for a device.
    Con#2 As someone else already mentioned, they can change your rate at any time if you’re not on a contract. Contracts guarantee your pricing for the length of the contract and in some instances, beyond.
    Con#3 Let’s say you pay $600 for a new phone, no contract…..so what? If you leave, you can ONLY go to AT&T with your new device because they are the only other carrier in the US who currently supports SIM cards. Sprint and Verizon can’t or won’t let you bring your own device. When my partner’s phone broke, we tried setting him up with one of my old Nokias and Sprint said “nope, you have to buy one of our devices”. Yeah, you’re free to leave whenever you want to, but you can only go to one carrier and bring your phone, anywhere else you’re going to pay for a new phone.

    Personally, I’ve had T-Mo for 8 years with no significant complaints. I was looking at other carriers recently, but that was because T-Mo didn’t have any devices I was interested in. Now I’m getting a G1 and am staying with T-Mo for another couple of years.

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  18. matt says:

    Its really cool because where as on a contracted postpaid account and plan changes require a one year contract. However with the no contract you can change you plan whenever to what ever you want with out ever worring about the one year contract. I dont know when exactly it started but i signed up 2 customers with it today it’s great

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  19. deachgo says:

    #16… My thoughts exactly. I’m in the same position with the 3000/$49.99

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