Did T-Mobile’s CEO Accidentally Hint At iPhone Pricing, Marketing Campaign?

T-Mobile’s CEO may have confirmed Apple products were coming to T-Mobile next year, but he never hinted at exactly what products T-Mobile would carry, or did he? During the Investor conference which saw the announcement, T-Mobile CEO John Legere hinted that T-Mobile could heavily finance “the most iconic device in the world” by selling it on a Value Plan offsetting some of the upfront costs. It’s clear that the full-on introduction of a Value Plan only environment will be a shift in how customers have bought devices, so T-Mobile is absolutely correct when they say they plan on doing somethings different. Needless to say, whether or not you love or hate the iPhone, it’s easily one of the more recognizable devices in the market.

“You may pay $99 for the most iconic device in the world, and then you may get 20 months worth of, call it $15-20 a month [on the device installment plan]. It’s very cheap out of pocket, very low. And at any point if you want to come back and trade in that phone, we will give you residual value, let you trade in that phone and stay on the contract service you have.”

While a lot of you have already sounded concerns over the financial impact from carrying the iPhone will affect T-Mobile, the notion that iPhones will be sold on Value Plans will help offset a lot of the costs. Concerns over a Sprint-style deal that won’t allow them to see a profit for years isn’t likely as any deal won’t likely be structured under the same guise as Sprint. The Value Plan only option makes sense for T-Mobile when they say that 4 out of 5 customers are choosing Value Plans. It makes more sense when you consider that between 12-15 percent of customers are bringing their own devices and servicing around 1.7 million unlocked iPhones on the network now.

The result may be that T-Mobile can turn a profit on iPhones by the end of the first year of sale thanks to Value Plans not forcing the company into up-front subsidies.

“We worked very, very hard for a deal that made sense to us … the deal is accretive to cash flow and EBITDA in 2014,” he said. “This is not a volume commitment the size of what Sprint agreed to or anything close to it.”

So, when T-Mobile’s CEO says his company’s way of selling the iPhone will be “dramatically different,” Value Plans are likely what he is referring to. As the deal doesn’t have any of the volume requirements Sprint has, investor concerns should be minimized.

RBC analyst Amit Daryanani is already predicting that T-Mobile will sell between 4 and 5 million iPhones in the first 12 months. That number is roughly compared to the 6.3 million iPhones Sprint sold in its first 12 months given the scope and size of each company’s customer base.

Turning attention to marketing the iPhone, T-Mobile says they plan on launching a “fun” campaign surrounding the iPhone and expect plenty of digs at AT&T. Legere says Sprint isn’t his primary target, but AT&T.

“We’re going to target Sprint. No, that’s not right. Sprint is too easy to target from a network standpoint. We’re going to target AT&T.”

Expect the company to launch a marketing campaign that sounds something like: “You love your iPhone, you hate @ATT.” Which is great, T-Mobile should grab hold of their underdog status and nip at the heels of the other three carriers, primarily AT&T. Given the ease with which customers can shift devices from AT&T to T-Mobile, it makes perfect sense that AT&T will be numero uno on the company’s hit list.

I’ll be thrilled, and I’m sure you will be to if T-Mobile can finally get aggressive now that they have a complete arsenal of smartphones. Life with Android has been great, but T-Mobile had a monstrous gap in their smartphone lineup that needed to be filled. Now that customers have a complete set of options, and if they can execute everything they laid out today, 2013 should be a very interesting year for Magenta.

Hat tip to CNET, PCMag

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  • Paul

    A: The Value Plan road is likely to be the only way to offset the cost of the devices.

    B: You’re right, they should nip at the other carriers. Better plan prices is a VERY good means to hit back. As well as Unlimited 4G. I hope Carly starts making fun of the other carriers like she did the in the past.

    I see this as a strong move, and I hope that move is completely forward. Not an iPhone fan, but this could really help the company with customers.

    • Addam

      I love it! What a great day! As a classic plan subscriber, Im confused as to whether or not I should go ahead and use my long-held upgrade now, since it seems like I wont be able to get the iphone with this upgrade anyway? Not sure how this will work. A few posts ago it was mentioned that Tmo will continue to support the classic plan, but it’s not clear where upgrading to the iphone will fit into that. thoughts?

      • jhon

        i asked tmobile i too have an upgrade in which i was holding it out on a iphone, i was informed i could use my upgrade for the iphone and get it for 200$ and could remain on classic plan

        • randomnerd_number38

          No offense there jhon, but I hope you don’t believe that is correct. I suppose it’s possible that could come true, but what makes you think the rep you talked to had some information other than the company line of “NO DETAILS NOW?” Either the rep you talked to made something up, or you made something up.

        • Sebastian

          Reps can’t make stuff up. All call center calls are recorded and monitored. So if a rep lied and made that up he’s basically asking to be terminated.

        • Renner5379

          Nobody at tmobile knows pricing of these phones yet

      • Paul

        I’m sure they will allow users to upgrade to the device. The Classic Plan may force you to pay more for the phone upfront, like the Note 2 release, but it’s up to you as to weather you want to do that or switch.
        Switching from my Classic Plan to a Value Plan would save me $10. I’m in no rush, but meh.

      • ash

        Wait a little bit to see if dates start to emerge. If it seems like its a while go to value. Every month you pay for that phone you are paying something that is getting you closer to a new phone anyway so you’re not losing as much money or waiting as long for upgrades as classic which at minimum has to be after a year to get even the slightest bit of a discount off the full price.

      • TMO Rep

        The Value plan is a better deal, Your upfront costs is lower to walk out with your phone and even with the monthly payments to pay the phone off your monthly bill si still lower so you save more money. example. right now if you want the Galaxy S3 on a classic it is 330 plus taxes where as a value os 149 plus taxes. if you have an unlimited plan(with insurance) on value your monthly bill is 67.99 + taxes based on where you live and $20 payments. In california this comes to 106 for 20 months and then 86 after. Classic is 87.99 plus taxes and comes out to about 110 and remains there unless you make a chance. So Value pays about 170 less in store plus pays less throughout the contract.

        • TMO Rep

          sorry for the typos. lost my glasses.

        • Addam

          So, can I use my classic upgrade now and then switch to value whenever the iphone is released? I want to grab the N4 over the next few days. It may just make more sense to get it NSA from the play store.

        • Herb

          DO NOT use your classic upgrade. In order to switch to Value without incurring migration fees, all of your lines must be at 18+ months of upgrade tenure. Search this site or T-Mobile’s for “Bridge to Value” if you want info on how to upgrade now but move to Value when all of your lines are eligible.

        • Addam

          yea but i renewed my contract without upgrading over a year ago. So I’m thinking I should be able to upgrade without renewing for two years since the upgrade is based on my current contract?

        • Herb

          Contract tenure and upgrade tenure are two completely separate things. Upgrades reset contract tenure, but not vice versa.

        • Addam

          gotcha. thanks

        • Addam

          so is there any reason i shouldnt just switch to value now?

        • thepanttherlady

          If you’re only into your new contract by a year then you’ll have a migration fee to switch.

          Be patient grasshopper, and wait to see what T-Mo announces regarding the iPhone so you don’t make a rash decision now that you’ll regret later. :)

        • Addam

          true, but Tracy at customer loyalty owes me huge, so im fairly confident they will wave the migration fee. I will probably wait. Thank you Ms. Miyagi

        • zazou1

          Since their goal is to phase out the classic plan in 2013, watch for a very nice offer to switch to value even though you are under a classic plan.

        • thepanttherlady

          You beat me to it, but thank you for explaining this!

        • Renner5379

          Get it from the play store and switch your plan to value now…start savings money monthly right now and when the iphone comes to tmobile use the EIP option to buy it instead of dishing out $700 upfront

        • Chris

          Why don’t you just switch to Value Plan and grab the N4 over at play store and wait for it for about a month? It’s a wait, but that’s where you’ll save most money.

        • Whitney

          You will still have pay a migration fee

        • UncleFan

          Classic plan GS3 is only $329 straight from T-Mobile. If you buy from Walmart or just about anywhere else, the price is only $148 or maybe less (I got mine for only $48!) because the reseller is adding their own subsidy. Then your monthly cost is going to be around $5 or $10 *less* than the Value plan + EIP.
          T-Mobile must really be pushing you guys to pimp the Value plans, because they are NOT such great deals if you know how to shop for phones!

        • Moneyman

          Not really. If you pay $80 per month for a classic plan with the subsidy of $48 at walmart thats $1968. If you pay $60 per month plus $500 for S2 thats $1940. Given you only save $28 over two years but classic plan still isnt cheaper over two years. On top of that, you have an upgrade of $18 (not sure if thats walmart policy). Even after the contract you start saving $20 per month so that could be a benefit to some individuals.

        • Moneyman

          Right now, theyre on discount for $400 so you save $128 over two years of time…

        • UMA_Fan

          Huh? Value Plan plus the highest EIP ($20/month) is the same price as the comparable Classic Plan. Plus the EIP is only for 20 months and then your bill drops down until you decide to get a new phone.

          Let’s not forget the Classic Plans have those upgrade fees as well. No upgrade fees on Value.

        • smylax

          The monthly cost will not be 5 or 10 dollars less per month. It would be the same. An individual classic plan is exactly 20 more per month than the value equivalent. The highest EIP is 20, so that would make it the same monthly cost for 20 months, then 20 more per month on classic for the last 4 months of the contract. Not to mention that taxes will also be lower on the value plan every month since you are only taxed for the rate plan (20 less per month than classic). So no, the savings you got on the phone at wal-mart are now negated by the fact that you will always pay a higher bill with classic. Period.
          Not to mention Wal-Mart *shudder*. I work for T-Mobile as a store manager and you won’t believe how bad they screw their customers’ accounts up. I used to work at a store right in front of a walmart back when we had flexpay. They would screw up accounts so bad that there was no way to fix them. I’ll pay the extra premium to not have my account eternally screwed up.
          And if you REALLY knew how to shop for phones: Play Store Nexus 4 + Value plans. Done.

        • HmanDizzle

          hahahaha you sound like a boss I used to have, you might not start with an
          R do you? lol

      • thepanttherlady

        The problem is, if you upgrade now, you’ve extended your contract 2 years. You’d have to pay a migration fee to move to the Value plan if T-Mobile decides to sell the iPhone exclusively on those plans.

        If you migrate now, and T-Mobile decides it will sell the iPhone for both plans (new & existing Value plan customers & existing Classic customers) then you may regret your decision.

        I say wait it out until you know exactly what is going to happen and how.

        • Addam

          is that true? I wonder because I my upgrade was from when i reupped my contract over a year ago. I just have never used the upgrade and always purchased unlocked phones. So, I’m hoping that since it’s an old upgrade, I’ll be able to upgrade without signing a new contract???

        • thepanttherlady

          I highly doubt you’ll be able to upgrade without renewing your contract but I don’t work for T-Mobile.

          If you’re looking at getting the GN4 try to get it through the Play store like you stated on another post. That way you don’t renew your contract and can move to Value for the iPhone (if needed) without penalties. That’s what I’d do to be honest.

        • Addam

          that seems like the best route. I should have used my upgrade when i renewed my contract a year ago because now it’s worth less in a sense. Thanks!

        • vivi77

          But you still have to sign a 2 yr contract when switching to value…unless they’re doing favors for certain people. I have play store nexus,switched to value from fave 5…..new 2 yr contract.

        • vivi77

          Nm I see what you’re saying.

        • thepanttherlady

          Him signing a contract isn’t an issue. He wants the iPhone and is eligible for an upgrade now. My point was signing a new contract now would cost him $ to migrate to Value andadvised him to wait a bit longer

        • Renner5379

          thepantherlady is 100% correct and also there is no thing as a old or new upgrade…when you upgrade and get a discount on a handset you renew your contract period. One thing is if you do the math the value plan ALWAYS works out to be a cheaper overall 2 year cost, so if T-mobile does decide to sell the iphone subsidized even though that most likely will not happen, you are still better off to go Value plan or if you can buy the phone outright in cash and not use the EIP option…use the monthly 4G option for $60 a month

        • UncleFan

          “if you do the math the value plan ALWAYS works out to be a cheaper overall 2 year cost”
          Not if you buy the phone from a 3rd party reseller who discounts the upfront cost in order to win the contract commission from T-Mobile.

        • Moneyman

          What’s going to happen to those companies if tmobile decided to offer value plan only and do away with classic plans all together? I’ve done the math for some customers in regards to the newer phones (i.e s2 or s3) and sometimes the value plan comes out cheaper, depends on the price. Even after contract, you may still benefit from value plan because your bill would be lower if you decided to not get a phone right away.

        • Anonymous

          thank you. this post is exactly what everyone should be looking at

        • Chris

          You have to extend your contract: yes. You only have to pay a fee, if you’re not 20 months out of your current classic plan.

        • smylax

          18, not 20

        • Anonymous

          Also, remember it’s not 18 months from your last contract sign date, but 18 months from the last time you upgraded your device.

        • Let me tell you as an ex retention rep… You Upgrade, you Uptract! Simple

        • Tweeter

          Nice Try… Anytime you upgrade your phone you are always signing new contract regardless if its classic or value.. The only way you do not sign a new contract is to pay full cost up-front or buy your device elsewhere..

        • smylax

          Ha, no… You can never “upgrade” without signing a contract. Do NOT use your upgrade, if anything go ahead and migrate now with no fees, then you will be saving money every month, and then if you want the iphone, buy it under value plan when it launches.

        • chuey101

          if you migrate now they will give you one month free so depending on where you are in the cycle (less than 12 months away) you could break even. I just did that and couldn’t be happier. My monthly bill will now go down from $120 to $70 for 2 line family plan with 1000 mins, unlimited data and text.

        • tweeter

          One thing for you to remember. T-Mobile is doing away with classic plans next yr. Yes they will still support those plans for those who are on them when they are done away with.. However once the contract is up on a classic plan and you want to upgrade.. you will be forced to move to a value plan… So the answer is…. NO MORE CLASSIC after March of 2013….

        • UMA_Fan

          Where did you get the March date from?

        • Addam

          so the questions is, will the iphone be released before the classic plan is eliminated?

        • thepanttherlady

          The original poster is aware that there may potentially not be a way to upgrade on the Classic plan at some point in 2013. His question was whether he should utilize his Classic plan upgrade now, prior to moving to a Value plan for the iPhone next year. My advise was to wait because by utilizing the upgrade now he will renew his contract thus incurring migration fees to switch from Classic to Value.

          We know T-Mobile will be offering 100% Value plans for new customers. What hasn’t been made clear is what they will be doing for existing Classic/grandfathered plans. Waiting seems to be a logical decision until all facts have been announced.

        • enoch861

          Migration fee? There’s no migration fee if your contract is up. You only get charged a migration fee if you change plans mid contract.

        • thepanttherlady

          Thank you for confirmimg what I said.

        • enoch861

          You comment implied that there was a migration fee and since he is out of contract already there isn’t.

        • thepanttherlady

          My comment didn’t imply anything. I said, if he UPGRADED now, he would be renewing his contract thus incurring a migration fee if he moved from Classic to Value.

      • GBreeze

        The best thing u can do is use the upgrade, but have them put u on a bridge to value plan. That way u will be able to take advantage of the situation

        • Renner5379

          if you do a upgrade you can not go to value without a migration fee…the bridge to value is for a family plan on classic that wants to add a value plan as a 3rd-5th line

    • Mirad77

      Agree with you on everything but the Carly part. She’s got to go. In her time T-Mobile saw nothing but decline.

    • bleeew

      New rule: Carly should now be on a Harley Davidson bike instead.

  • Julian C. Taborda

    I’ve literally never been more excited for the future of this company.

    • bleeew

      I think they will have a good come-back. They just need to fill in 2G and they are set!

  • Noah

    I don’t wanna sound stupid, I have a classic plan, can somebody explain the difference between the value plan and classic plan? Will we have to pay $649 for the iPhone when we renew our contracts?

    • Addam

      if they support classic plan upgrade to iphone, the price will be subsidized and will probably be similar to what verizon or att has the phone for on a two-year contract.

      • Renner5379

        most likely…just your monthly plan will cost you much less :)

    • jhon

      from what i understand from tmobile reps, we could keep our classic plan and get the iphone for 200. Value plans are primarily for new customers. New customers are restricted to value plans only.

      • thepanttherlady

        Until T-Mobile releases details, I wouldn’t bet my life on anything most of the reps say.

        • Herb

          I wouldn’t bet on anything ANY of the reps say. The internals David posted were pretty clear: T-Mobile will be carrying [Generic Apple Devices] at an unknown price at an unknown time some time in 2013.

        • Addam

          yea, i’ve found that in most cases i know more from reading this blog than the reps on the floor at the brick and mortar stores. They get their info way after we do here :)!

      • K_Hart

        If any rep is giving you pricing on an IPHONE they are totally making it up. We have not been told any pricing, release date or exactly which phone it will be.

      • Renner5379

        There is NO ONE IN ANY CORPORATE STORE that knows anything about pricing….if they tell you otherwise call them out and ask for documentation to back it up

  • redman12

    I love where T-Mobile is going. Very smart cookie.

  • Deadeye37

    If we could sell the top of the line iPhone for $100 cheaper upfront than the competition, customers would flock onto the network. That would really help out T-mobile.

    While I’m not a fan of Apple, I would love to see that happen! T-mobile’s network would grow & expand (hopefully better rural coverage) and T-mobile will be able to pull in awesome exclusive phones from other OSes (Android, WP, and Blackberry).

    I’m excited! Hopefully T-mobile boosts their service quality also so that they can be #1 in that category also.

    • Renner5379

      cant sell for a different price…its called MAP pricing (Minimum Advertised Price)

      • Mobilewolf789

        Oh… Is that what happened with the Nexus?

  • Addam

    total gut feeling, but i feel like Tmo has secured an exclusive window with Apple to sell the iphone 5s and that will be the first apple product releases on tmo

    • me

      Hahaham your kidding yourself if you think T-mobile has the capitol to have an exclusive release on the iphone. If that were up for bid Verizon and Att would be first in line and would happily pay for it.

      • Addam

        hopefully we’ll know soon

  • newyorksuzie

    There are no “accidents” in the business of cell phones..The ceo knew exactly what he was doing.

  • iSheep King

    This is stupid. So they want to do it on value plan only? So that means you will pay full price either way. Why wait, might as well buy the iPhone at the apple store unlocked for 649.

    • taron19119

      But wit the value plan T-Mobile can have people pay 99 dollars down and say we have the cheapest iphone around

    • Renner5379

      very true! switch to the value plan which is about $20 cheaper per month this is what a lot of customers are doing already…only difference is that you will be able to buy it right from tmobile in the future and if you dont have $649 upfront they will do free financing through EIP

    • fechhelm

      You’re going to pay full price one way or another no matter were you go, just do the math.

  • Jay

    David, T-Mobile heavily promotes samsung products. How do you think promotion will actually work with the Iphone? Will this affect samsung and tmobiles relationship?

    • Joel

      then less people will get the gs3. right?

  • Rawb

    I do not like the iphone. Owning a sgs3 apple needs to at least make the screen the size of the sgs3. Last Saturday my dad stopped by to show me his 4s he got (as if I didn’t know what it does) he wanted crackle on it so I thought let’s see what’s better to watch crackle on and imo the bigger sgs3 screen is better. However I do have a 1st gen iPad and I like the games and whatnot but I’m a true android fan. If tmobile needs more customers then this should bring more.

    • mewj

      Screen size and overall consistency in performance and build quality are two of the main reasons why apple has been able to succeed so well with emphasis on screen quality over size. Samsung could put a lot more effort in build quality…IMO.

      • I agree. Their devices still lack that high premium device build quality of Apple or even HTC.

    • bleeew

      I think the iPhone screen size is perfect. Screen size is preference, but Samsung could use IPS.

  • I could see T-Mobile either approaching Sprint or even surpassing them by the end of next year. I agree with their strategy of going after AT&T. That’s where most of T-Mobile’s iPhone customers will come from. Bring it on.

    • bleeew

      But Sprint has more customers, and they have Softbank cash. They also have LTE(Small coverage)
      But then T-Mobile will roll-out LTE-A, and will have cheaper prices, and has gained spectrum.

  • UncleFan

    How will they be able to sell the $650 iPhone for $99 + $20/mo EIP when they sell the $550 GS3 for $149 + $20/mo EIP?

    • Mirad77

      $99 down, $27.50 a month for 20 months.

      • UncleFan

        Well, yeah, that would make more sense, but that’s not what the article said.

        • Mirad77

          He was giving an example of how it might go not how it will go. That is my take and giving that apple sell the iPhone for $650, m math will sound rite.

        • bleeew

          Apple has suggested retail price. I doubt carriers can change the iPhone price. so for 16GB latest iPhone($649) it would be $199+$22.50 for 20 months.

        • Mirad77

          We are all speculating. Don’t forget that no bother carrier have the 20 month EIP like Tmo. So if customers are paying the full retail price then it might either way as the cost goes to customer not carrier.

    • xmiro

      by emphasizing benefits and features of one over the other assuming cost is not the customer’s main point?

  • atari37

    Can someone explain something to me about the value plans? If I’m paying full price for the phone or bringing my own phone, why do I still need to pay a $200 termination fee to leave?

    • thepanttherlady

      Sorry if this is a double post..was having problems with my browser when trying to post the other response:

      I think part of the problem here is that people have the misconception that Value plans are like pre-paid plans. They aren’t. Value plans are still post paid plans just like Classic plans. The difference is with the Value plan, T-Mobile doesn’t subsidize the cost of the phone (consumer pays full price) so they pass that savings onto the consumer by lowering the rates.

      You sign a contract as you would with any other carrier for service. If you break the contract, you pay for doing so. Just like every other carrier.

      • UncleFan

        The reason this concept is so confusing to people is because they can not imagine a reason a SANE person would sign a 2 year contract without receiving a device subsidy in return. Why would you want to “lock in” a monthly price that’s higher than Monthly4G, Straight Talk, and T-Mobile’s own MVNOs?

        • thepanttherlady

          If I purchase a phone on let’s say, Craigslist, and take it to Verizon, Sprint, or AT&T to sign up for service I can guarantee that if I want a post paid account I will have to sign a contract. Even without a device subsidy.

          I look at it this way, T-Mobile is in the business to make money. What point is there to have
          postpaid customers without a commitment from them?

          Aren’t all 3 plans you mentioned, prepaid plans? Don’t want to utilize T-Mobile financing you on a phone? Great. They’ll let you bring your own. If you want a company to extend “credit” then be prepared to sign some type of contract. Period. If you don’t want to sign a contract, then Monthly4G, Straight Talk, and T-Mobile’s own MVNOs as well as the new GoSmartMobile are the plans for you.

          T-Mobile isn’t forcing you to sign a contract. If you want certain privileges, then you have to play by their rules. If you don’t like their rules, they offer you alternatives.

          I love options for everyone! :)

        • UncleFan

          “What point is there to have
          postpaid customers without a commitment from them?”
          That’s a good point, but T-Mobile is doing it all wrong. If they want me to sign a contract but get off of Classic, they should attach the contract to the *EIP* and not the service plan and then let me choose/change which plan I want at any time. Of course this would make their business more like a car dealership, and I don’t know if they want that.
          You seem to be pretty clued in, so let me ask another question: if my Classic plan is such a bad deal like all these guys coming out of the woodwork all over the internet today say it is, then how come T-Mobile is trying so hard to get me to switch to Value plans, hmmm?
          I’m sorry if I sound rude or snippy, but I get the distinct impression on every gadget blog lately that people are out there *pushing* these Value plans – hard – but not necessarily in the best interest of the consumer.

        • thepanttherlady

          I would find it hard to believe T-Mobile’s push for their Value plans are done so innocently and because they’re in their customer’s best interest. I believe the push for Value plans is because it saves them the loss they take when subsidizing phones. This is just my opinion.

          With the Value plans you are able to choose and change your plan at any time. I think the same is true for Classic customers. I believe the only thing preventing said changes on the Classic plan is when you upgrade and the phone you upgrade to is tied into a certain voice/text/data plan (e.g. Unlimited). Then you’re not able to change services until the contract is up.

          With that being said, I don’t think Classic plans are necessarily a “bad deal”. Only you know what you pay for the plan you have so only you can determine which plan works best for you and whether or not Classic is the way to go.

          For me, I prefer the Value plan because I AM saving $ monthly with the 3 lines I have. Even with having 3 EIP’s (one for each line), I’m still saving. I’m saving $15 a month which is $360 over the course of my 2 year contract. If I hadn’t utilized those 3 EIP’s, my savings would be $75 a month or $1800 over the course of my 2 year contract.

          Another reason I prefer the Value plan versus the Classic plan is that I am not tied to a 24 month date before I can get a new phone. I am able to “pay off” my current phone and immediately get a new one without having to wait for an upgrade date to come around. Again, I’m still saving on my monthly plan with the extra $20 tacked on so I don’t have to wait for month 21 to see savings. For me, this is an amazing option. I think the longest period of time I’ve owned a phone was for 8 months. I wouldn’t be able to do that with a Classic plan short of purchasing them outright on Craigslist or Ebay etc. With the new implementation of the IMEI database, that option is no longer a good one for me.

          I don’t find your post snippy at all. I am a believer that the consumer should be educated with their options and let them make their own decisions. I don’t appreciate people force feeding others something they believe is in their best interest. Those that ask questions are the ones that seek to make their own decisions. Good for you. :)

        • niftydl

          This isn’t the case. If you bring your own device and you have good credit, you can establish a postpaid account on AT&T or Verizon WITHOUT a 2 year agreement.

          For people who wantes post-paid coverage without a contract – Even More Plus plans made a lot more sense, but my understanding is that there were a lot of shady people ending service without paying off devices. Value plans offer no real value to the customers who bring their own devices, other than the lower monthly rates and potential roaming coverage.

        • thepanttherlady

          I stand corrected if the first part of my reply is incorrect. It HAS been many, many years since I was with Verizon and even longer since Sprint. I never had service with AT&T.

        • annoyed

          with a $500 dollar deposit, dont say sh*t and leave out the most important information. YES you can get a no commitment postpaid plan from both carriers. YES you have to pay a $500 deposit to do so, so your point, though valid really is pointless in the argument at hand

        • 21stNow

          Everyone doesn’t have to pay a $500 deposit to open a non-contract line with VZW and AT&T. I have non-contract lines on both of those carriers and didn’t pay a deposit for either one of them.

        • smylax

          Only with poor credit…

        • Anon

          I believe the pricing of the value plan an their monthly plans are just about the same. The reason for the contract is because the EIP is 20 months. If you are bringing your own device, the monthly plan is still the better bet. If you want a T-mobile device however, the Value Plan + EIP is still a better deal than a Classic plan. So if you want a T-mobile device and don’t want a large upfront cost, which is most people, the Value plan is the way to go. The kicker is, if you decide to cancel before you finish paying off the EIP, the penalties are higher than a Classic plan. So the way I see it, T-Mobile is floating you an interest free, loan of $200 for 20 months in return for higher customer loyalty. As a customer, I can choose not to go the EIP route, and save a lot on my monthly service costs in return. I only pay the EIP (or in essence a subsidy) if and when I choose to purchase a device. At least that’s the way I see it

        • 21stNow

          With T-Mobile raising the device prices by $50 for the Value plan purchases recently, that is effectively a built-in interest payment that Value plan customers pay. For example, I bought a Galaxy Note II for $649 on Monthly 4G while the Value plan price is $699.

          If T-Mobile is that scared of people not paying the EIP balances, they should stop offering the EIP.

  • Jeff Martinez

    Even though i’m a proud owner of the Nexus 4, i’ll be happy that Tmo will finally get to sell the iphone, Congrats. if that’s the case.

  • Ben

    The past 12 months have made a huge difference in Magenta land. At this time last year we were worried about being gobbled up by AT&T. Here we are 12 months later talking about crushing our would-be owner. Who knows what the next 12 months will bring? Fingers crossed

  • Enzowned

    When they couldn’t changed the players in the game, they changed the rules. Gotta hand it to them.

  • Ĵϵṟϵṃψ Ψαñ

    Yes I hate ATT. But I hate T-Mobile also when I don’t get reception.

  • steveb944

    “Sprint is too easy to target from a network standpoint” LMAO best quote ever

  • Joel_axel

    i like how he said ” numero uno” jajaja its cool since i know spanish :D

  • Joel_axel

    i hate when tmobile says they have 4g but you only get about 2.5

    i wonder if the 3g will be even slower

  • Mirad77

    Got my N4 and loving it bust if this is going to help Tmo compete again then fine by me. I’d say $99 down, $27.50 a month for 20 months.

  • notme96

    I would make sense for T-Mo to target At&t. First of all they both are GSM carriers and, like said in the article, it would be easy for customers to transfer their devices over. Also, because of them shifting their HSPA+ network to 1900mHz, the iPhone, specifically the iPhone 5, can take full advantage of the HSPA+ 42Mpbs.

  • Aurizen

    I wonder how much I would play on my Classic plan.

  • I wonder what percentage of T-Mobile’s smartphone base will be iOS a year from now? I could see them being like AT&T where iPhones make up the majority of the smartphone base.

  • I am pro android but I feel like T-Mobile acquiring apple products is… Well let me put it this way apple is a gun and T-Mobile is a trained assassin, T-Mobile today has a good variety of weapons it can use to shoot down the competition if DT is willing to see how well T-Mobile will do now. T-Mobile has been waiting for this moment for so long they aren’t going to mess this up.

  • ant


  • Me

    It is a little bit worrisome that they did not announce a specific device. Makes me think T-Mobile may be getting the shaft when it comes to the iphone 5. It would almost be better to get no iphone at all then to get a 4/4s varient this late. Just reinforces the perception that T-Mobile is not on equal footing as the the big 3.

    • thepanttherlady

      Considering it isn’t happening until 2013, I can understand why a specific device hasn’t been announced.

      • me

        I agree, but having worked in PR my whole professional life I know a red flag when I see one. I guarantee you 100% if it was the iphone 5 for sure T-mobile and DT would be screaming from the hilltops about it to stop people from leaving now. The fact that they are being vague about it is a sign that its not something they want discussed. When you see things like “Apple products” instead of specifics being given out, it usually is a sign that its not all its cracked up to be. Hope I am wrong but I see a 4s announcement coming in early 2013.

        • Mobilewolf789

          I was thinking it would be the iphone 6 or 5s when it would be released sometime later next year but specifically built to work on tmobile’s lte network. But there is another article saying the President hopes iphone will stop customer losses?

  • Guest

    i dont get this value plan. with classic, you got a subsidy and paid your bill for your features. what’s different? can someone explain please?

    • smylax

      Here’s the simplest explanation: with classic, you get a high bill and discounted phone. Value plan is a discounted plan, but full price for the phone. It works out better for the customer (and for T-Mobile b/c they don’t have to provide subsidies). Let’s look at a plan with unlimited talk, text, and truly unlimited web with handset protection.
      On classic this is $97.99 per month.
      On value this is $77.99 per month.
      Let’s use the GSIII as an example.
      On classic you pay $279.99 after rebate ($329.99 up front).
      On value you pay $149.99 out the door, plus $50 bucks back, either as a rebate or account credit, depending upon credit class.
      With Value, the rest of the cost of the phone is split up $20 a month for $20 months.
      Add that to your value plan you get $97.99 a month for 20 months ($77.99 + $20). After 20 months the phone is paid off and bill goes back to $77.99 per month.
      For 20 months the bill is the same, but you paid less up front. And actually the bill will end up a a little bit cheaper on value because all of the taxes or based upon $77.99 per month instead of $97.99. The $20 of EIP is not taxed monthly because you already paid sales tax up front.
      In summation: with the value plan you paid less up front, and less per month. Your EIP is paid off in 20 months so you can start the process over with a new handset if you so desire, or leave it like it is. Compare this to having to wait 22 months on Classic to get another full upgrade, Value allows you to get devices more often (you can even pay your balance off and get a new phone whenever you like).
      With Classic, you paid more up front and more per month.
      Value wins. It would take a very rare situation, like a free GS3, free out the door, to be a better deal on Classic. But with the rising costs of handsets, these are less and less likely, and in fact most promos (such as current one that started on Black Friday) is only for Value plans.
      Hope that clears it up.

      • Guest

        Ohh I see now. Thanks so much!

  • Trevnerdio

    Don’t forget to improve your customer service and eventually, your footprint and you’ll be totally set, T-Mo!

  • T. Allen

    Left Verizon TODAY and took myself back to Tmo. Oh, I brought my iPhone 5 with me!!

    • Guest

      I didn’t realize Verizon’s iPhone had a micro-sim/simcard slot?

      • smylax

        Yup! And comes unlocked already! The sprint version does not, for what its worth. And only the iphone 5.

        • Guest

          hmm interesting. Does it work on T-mobile’s 4g?

  • Barneyy

    Will prepaid pricing stay the same?

    • smylax

      Let me look in my crystal ball… it says no one knows…

  • iSheep King

    So about this “migration fee” to switch from classic to value, does anyone know how much is the fee?

    • Mirad77

      It typically depends on how long you’ve been on your current contract term.

    • smylax

      Based upon how long its been since your last upgrade: up to $200 per line, goes down over time. At 18+ months since last upgrade there is no fee.

  • brandonjaye

    Of course all this news comes two days after I bought a Galaxy SIII. *Le sigh*

    • Guest

      14 day return policy?

  • LayC

    I just hope they will put wifi calling on the iPhone…

  • Cozzy

    IF tmobile is going value plans all in. I see no reason why any of you would not just go to a prepaid mvno that uses tmobile towers. Its cheaper than a value plan and NO CONTRACT.

    • smylax

      Because most customers don’t have 500-700 bucks to plop down at once. Hence where the ability to pay the phone off interest free comes into play. And none of the MVNOs have the truly unlimited data plan, and neither does monthly 4G.

      • Mobilewolf789

        That’s what I want to know. Verizon always seem to work when the other networks goes down during some emergency/disaster. I want a phone that works on tmobile but switch over to Verizon when there is no other coverage.

  • Spanky

    Here’s the issue with targeting AT&T. T-Mobile’s coverage is nowhere near that of AT&T. I’m a former T-Mobile customer who made the switch to AT&T last summer. Do I like paying more? I most certainly don’t. However, I like getting anywhere between 25-50 Mbps downstream on AT&T, compared to 0.5 Mbps that I used to get on T-Mobile. If T-Mobile ever improves their coverage in my area (I live in NYC, so there’s simply no excuse for 0.5 Mbps), I’ll be back in a plit second. Right now, I’ll stick with AT&T.

  • Guest

    It would cost me more money to go to the Value Plan route, which I’m really upset about. I wish I could say I was surprised about them going 100% percent Value plan since I pretty much saw it coming. To me, it means more of a monopoly on phone sales for T-mobile and more control of the profit coming their direction without raising their prices. I get it. For me this means a higher bill in the near future… I’m sitting on an upgrade, but I’ve been thinking about waiting anyway because I am still waiting for a phone I’m really excited about. It doesn’t effect my contract though because I’m still under one due to the fact I made a T-mobile to sign up for another two year early.

    I just bought a Galaxy Note 10.1 after I had just purchased a Tab 2 7.0 a few months ago. A lot of what satisfied me in a phone is now satisfying me in a tablet. The Note II is too big for a phone and I’m still satisfied with what I have right now (Mt4g). I dunno… I’m not excited about this news, but I was dancing on the roof about them getting the iPhone. Until I heard about the 100% Value plan. I don’t think Apple specifically is changing the company, but some people probably reading this will connect the two and blame it all on that. I think this has been a long time coming… T-mobile has to find a way to get more money out of people without blatantly raising prices and having a monopoly on phone sales while charging full retail price and upping the price of phones they sell in general is the way to do that. It will help them cut costs and help them survive… I just feel like it puts more control in their hands. It’s a good deal for some right now, but once everyone is switched over and comfortable with the new way of doing things, all they have to do is inflate the price of phones and that’s where we will see costs begin to rise again. They’ve already been doing it on some of their phones.

  • I definitely want the option to trade my phone back in for a residual value. Whenever that starts I want to be notified.

  • Yes! Come on T-Mo iPhone 5 & 5s!

  • ClubMediaHD

    Go for it Tmobile! This deal with Apple tell us that your CEO is thinking smart and we the loyal tmo customers like it!