T-Mobile USA’s New Plans Show You What The Handset Subsidy Costs
T-Mobile USA’s new rate plans were announced today: Even More and Even More Plus. The Even More plans look like a rather traditional plan with a subsidized handset and 2-year contract with unlimited voice starting at $59.99/mo, unlimited text for $10/mo, and unlimited data for either $10 or $30/mo depending on whether or not you have a smartphone. That’s not an unreasonable deal.
What’s more interesting to me is the Even More Plus plan. The unlimited voice part of that plan is $49.99/mo. Unlimited text is another $10/mo and unlimited data is another $20/mo. The handsets on this plan can either be bought outright from T-Mobile at full price, bought elsewhere (so long as it’s an unlocked GSM handset), or “financed” over 4 or 20 months at zero percent interest. And, of course, there is no contract (unless, of course, you transfer to this rateplan from a plan that did have a contract).
For the first time, a US consumer can clearly see what the handset subsidy costs. A customer can run the numbers for themselves and decide which is cheaper: buying a handset outright or paying $10 extra per month as part of their rateplan. For those customers who don’t want a contract, but can’t afford the upfront cost of a handset, you can finance it and see just how much per month you’re paying for it. And if you buy the handset elsewhere (or have a rather sizable stash of them like I do), then you get a discount on service. Everyone wins.
As cool as I think these rateplans are, I’m pretty much stuck to AT&T because of the iPhone. I don’t expect AT&T and Verizon Wireless will follow suit on these rateplans, either. It’s a shame, because these new T-Mobile plans are some of the most consumer-friendly rateplans I’ve seen in a long time.
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Tags: at&t, iphone, t-mobile, verizon wireless Fnord
Comment by tom
this is a start. but where the unsubsidized discount plans for bringing your own phone really shine is at the low end of the price range. i would like to see typical 450-600 minute plans that currently go for around $40/month with a 2 year contract and free or discounted phone priced at $20/month bring your own phone. also i know more and more people with multiple smartphones(mostly for ‘playing around with’) many of these people would be interested in data only plans. we really need a $20 – $30 per month data only option with perhaps the ability to make voice calls on a per minute basis. for example i have a very simple cell phone i use for nearly all my voice calls but also own an iphone, a G1, 2 blackberrys and a couple other phones that i use strictly with WiFi i would like a cheap data only SIM card to pass between these phones. AT&T used to have a mediaNET option that was perfect but that has been discontinued over a year ago. i do have CDMA phones with cheap enough prepaid data but they do not have the right mix of a really cool OS, WiFi, etc. GSM has really taken over the cool phone market lately.
Comment by tom
i really do like the idea of ‘financing’ the phones for 4-20 months. i believe some adaptation of ‘carterphone rules’ should make this the norm to replace traditional cell phone subsidieses. i just make sense for it to be more transparent. i also believe it could be good for smartphone manufactures long term as there product are perceived as ‘more valuable’ due to the actually prices being public, although they would probably be replaced less often. high end smartphones are very popular in places that have never had subsidized cell phones such as russia and china.
for me personally i run a small used computer shop that has recently been diversifing into used smartphones. these type of plans should make more people look at used phones as an option.