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...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Mobile Tech
Next Generation Data Center Is Here!
Average Rating:
Rate this article:  
'Uncarrier' T-Mobile Does Away with Subsidies as iPhone Intro Looms

By Jennifer LeClaire
January 9, 2013 11:45AM

    Bookmark and Share
"As the 'Uncarrier,' we're doing the unthinkable," said John Legere, president and CEO of T-Mobile. "We're directly confronting the frustrations of American consumers fed up with the cost, complexity and congested networks of our competitors." T-Mobile is rolling out a no-annual-contract unlimited talk, text and data plan for smartphones.
 



T-Mobile USA is going where no major wireless carrier has gone before. The fourth-largest carrier is nixing smartphone subsidies as it gets closer to putting its hands on the iPhone.

T-Mobile made the announcement at the Consumer Electronics Show i-Mbile n Las Vegas on Tuesday night. The company also put out rapid-fire press releases about LTE network enhancements, a 4G Connect laptop and tablet service, and the unlimited no-annual-contract plan.

We caught up with Avi Greengart of Current Analysis from his Las Vegas hotel room to discuss T-Mobile's announcements. He told us the new T-Mobile contract model aims to convince consumers they should be buying their phones up front -- or financing them -- and buying the service alongside instead.

Can T-Mobile Pull it Off?

"This subsidy-free model is something U.S. carriers have not been willing to do, but T-Mobile has nothing to lose so they are going to try it," Greengart said. "T-Mobile is going to see if they can convince consumers that, if they do the math, they will see clearly that T-Mobile offers an equivalent product at a lower total cost of ownership."

Of course, in terms of equivalent product, Greengart said, T-Mobile needs to get its LTE network up and running for parity with the other major carriers in a hurry. Greengart noted that T-Mobile execs made bold claims about their ability to push out LTE quickly during Tuesday night's press conference.

"Right now, Verizon has their LTE network largely rolled out. AT&T is in the middle of a rollout. Sprint has started a rollout. T-Mobile hasn't started yet but they claim they are going to do it very quickly," Greengart said. "AT&T is ahead of schedule in terms of where they had promised to be at this point so I wouldn't put it past T-Mobile to pull it off."

Bold Marketing Moves

T-Mobile is making its Unlimited Nationwide 4G Data Plan available with no annual contract immediately. That makes T-Mobile the only U.S. carrier to offer an unlimited, nationwide, 4G data plan with no data caps or overages.

"As the 'Uncarrier,' we're doing the unthinkable," said John Legere, president and CEO of T-Mobile USA. "We're directly confronting the frustrations of American consumers fed up with the cost, complexity and congested networks of our competitors."

Meanwhile, T-Mobile's 4G Connect aims to make 4G connectivity a standard, integrated and free feature on select notebooks, tablets and Ultrabooks. Through 4G Connect, consumers who purchase these devices can access the Internet through a high-speed connection via T-Mobile's 4G network, without extra equipment, annual contracts or commitments.

Legere said the company's goal is to make sure customers have a "walk-out working" experience and not be constrained to Wi-Fi to have a data connection.
 

Tell Us What You Think
Comment:

Name:



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.


 Mobile Tech
1.   Virgin Mobile Offers Custom Plans
2.   Asana Revamps Mobile App
3.   Android 'Fake ID' Puts Millions at Risk
4.   FTC Wants Fix for Mobile Cramming
5.   Facebook To Force Use of Messenger


advertisement
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Dell, BlackBerry Downplay Threat
Say Apple-IBM alliance can't hurt them.
Average Rating:
BlackBerry Acquires Secusmart
German security firm offers street cred.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Tor Internet Privacy Service Warns Users It Was Breached
You may never have heard of the Tor Project, but the Internet privacy service is making headlines. Tor’s devs say users might be victims of an attack launched against the project earlier this year.
 
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

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 | CRM Systems | 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

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.