Thursday, December 6, 2012

T-Mobile Will End Subsidies Next Year.

If they can drop the plan prices even more and put on a monthly payment plan on the phones, this could be a gamechanger.
T-Mobile will end smartphone subsidies in 2013 CEO John Legere said today in a presentation to analysts. We first spotted the video on GigaOm.

This means you'll have to pay full price for your phone or bring in an unlocked device. The upside is that T-Mobile will charge you less for your service plan.

However, things will be a bit different once T-Mobile starts selling the iPhone next year. Legere said T-Mobile will likely sell the iPhone for $99 up front, then charge you an extra $15 to $20 per month over 20 months to pay off the rest of the device.

Most carriers today will only charge you about $200 for a smartphone if you agree to a two-year contract. The carriers pay the manufacturer the rest of the price up front, and your expensive service plan pays the carrier back in turn over that two-year period. T-Mobile's new approach for 2013 is to keep your data/voice/texting plan cheap, but require you to pay for the full cost of the phone up front.

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