Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Apple/Mac
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
T-Mobile Turnaround: iPhone Is In, Contracts Are Out
T-Mobile Turnaround: iPhone Is In, Contracts Are Out

By Adam Dickter
December 8, 2012 9:02AM

    Bookmark and Share
"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."
 



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.



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Apple/Mac
1.   Is Apple Dumping iPhones on eBay?
2.   Apple Seeks an 'iCup Technician'
3.   Apple Expands CarPlay System
4.   Apple Updates Mavericks, iOS 7
5.   Apple Cuts Prices of iPod Touch


advertisement
Apple Updates Mavericks, iOS 7
Another failed attempt by Apple?
Average Rating:
Summer of Silicon Valley's Interns
Good pay, perks, and a future career.
Average Rating:
Is Apple Dumping iPhones on eBay?
Factory Certified sells refurb handsets.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Report: Chinese Hackers Hit U.S. Personnel Networks
Hackers from China broke into the computer networks of the U.S. Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees.
 
Charges: Russian Stole Data from U.S. Restaurants, Zoo
A Russian man arrested on bank fraud and other charges hacked into computers at restaurants in Washington, hundreds of other retail businesses, and even the Phoenix Zoo, authorities say.
 
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 

Enterprise Hardware Spotlight
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 
Gartner Sales Study Sees Tablets Up, PCs Down but Recovering
Are PCs on the comeback trail? That depends on how you define "comeback." While tablet sales remain strong, Gartner's latest study found PC shipments aren't dropping as fast as they did last year.
 
Review: Warming Up to Tablets with Keyboard Covers
If you've ever thought tablets with keyboard covers were just a poor excuse for a laptop, think again. Nokia's Lumia 2520 comes with an optional keyboard cover that just may change your mind.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.