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T-Mobile Turnaround: iPhone Is In, Contracts Are Out By Adam Dickter December 8, 2012 9:02AM     "T-Mobile needs to carve out a successful niche," said analyst Jeff Kagan. "Changing the basis on which they do business from postpaid to prepaid may work, and I hope it does. But it also could hurt T-Mobile if they don't do it right. There are already leaders in both prepaid and postpaid, so either way will be tough."   Related Topics T-Mobile iPhone AT&T MetroPCS LTE HSPA+ Latest News Reality TV's New Stars: Small Biz Soundbars Up the Ante on TV Sound Google Glass Raises Privacy Concerns Pentagon Gives iOS 6 Security OK Should Enterprises Skip Windows 8? 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.   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. Also Visit: iPad Info Center Billions of Bytes Mobile Device Now Apple Info Center TopTechWire.com CommVault is a data and information management software company dedicated to providing organizations worldwide with a radically better way to manage data and information. Their unique Solving Forward philosophy allows them to deliver complete solutions with infinite scalability and unprecedented control over data and costs. Be among the first to experience Simpana 10 software. Click here now.  Apple/Mac 1.   Pentagon Gives iOS 6 Security OK 2.   IDC: Windows Phone Now in 3rd Place 3.   Bill Gates Discusses Steve Jobs 4.   U.S. Cellular Embraces the iPhone 5.   Google Now Is a Siri Supplement Pentagon Gives iOS 6 Security OK But only for devices issued by govt. Average Rating: IDC: Windows Phone Now in 3rd Place BlackBerry OS quarterly share declines. Average Rating: Bill Gates Discusses Steve Jobs The late Jobs is praised in interview. Average Rating:

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Network Security Spotlight

Syrian Electronic Army Hacks Financial Times The Financial Times is the latest victim of the Syrian Electronic Army, a group that supports Syrian President Bashar al-Assad. The U.K.-based newspaper said a blog and its Twitter accounts were hacked.   Patch Tuesday Hyper Focuses on IE 8 Microsoft on Tuesday issued 10 security bulletins that fix 33 vulnerabilities. These updates include MS13-038, which will address the Internet Explorer 8 issue described in Security Advisory 2847140.   Surge of Venture Capital Buoys Tech Security Sector With companies and governments spending billions to repel cyberthreats, a surge of venture capital is pouring into companies developing cybersecurity technologies, the front line of the conflict.

Enterprise Hardware Spotlight

U.S. Defense Department Gives iOS 6 Security OK In a vote of confidence for Apple's iOS devices, the Defense Department has given the all-clear for employees to use iPads and iPhones for work. But only those running iOS 6, and only if issued by the government.   Cisco Surges After Profit Exceeds Analysts' Estimates Networking equipment giant Cisco's net income jumped 14 percent in the latest quarter as revenue at all four of its divisions rose for the first time in a year and a half, as tech spending increases.   HP and SAP Team To Advance HANA Database Technology The two tech leaders are working on a system that SAP says could fundamentally change the database market. HANA is SAP's technology that keeps data in-memory, for super fast processing.

Mobile Enterprise Spotlight

Google Glass Raises Congressional Privacy Concerns The buzz around Google Glass continues, but it's not all good. Some in Congress have questions. "We are curious whether this new technology could infringe on the privacy of average Americans," their letter to Google says.   Windows Phone Now No. 3 in Market, BlackBerry No. 4 Has Microsoft Phone moved into a coveted though distant third place for smartphone platforms behind Google's Android and Apple's iOS? A new report says yes, while BlackBerry has slipped to No. 4.   Intel Going Mobile with Its New CEO In his first speech as Intel's CEO, Brian Krzanich said he plans to focus on beefing up Intel's presence in mobility. The next step: a world tour showing mobile devices based on Intel chips, from PCs to phones and tablets.

Enterprise Technology Spotlight

HP and SAP Team To Advance HANA Database Technology The two tech leaders are working on a system that SAP says could fundamentally change the database market. HANA is SAP's technology that keeps data in-memory, for super fast processing.   Cloud Computing Gains Another Competitor with Google Amazon Web Services and Microsoft Azure now have a full-on rival in Google, with its I/O announcement that it is opening its hosted Compute Engine environment for virtual machines to all comers.   Hackers' New Tool of Choice: Smartphones Smartphones are increasingly popular not only with consumers, but with thieves who see the devices as another way to tap into bank accounts and other sensitive information, experts say.

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