T-Mobile lowered the curtain on its "Even More Plus" plan online last week
But Americans seem to be addicted to subsidized handset pricing (as Google found out with the Nexus One) and T-Mobile has taken the plan off-line while the big guns at the carrier put on their thinking cap and try to revise the program. Right now, "Even More Plus" is still available, but only via telephone or from a T-Mobile rep at one of the carrier's retail locations. Americans don't mind getting locked in via contract just as long as a $599 handset goes for $199, and unfortunately for other post-paid options, until someone does the math we don't see much changing in the way cell phone service is priced in the U.S.
1. ssjassassin posted on 15 Nov 2010, 23:08 0 1
To start I work with T-Mobile in Arizona. I have worked with Verizon as well. This is a interesting article for me because phone arena has its opinion on how plan pricing works in the US.I think that it comes down to cash up front and uneducated customers. Lets take one of the most expensive phones we sell that is $499.99 after tax here it is $546.49. That same phone on contract is $249.99 and $273.24 after taxes. That makes the cost difference up front $273.25 + the post tax return of a rebate. Grand total is $323.25 more expensive than a contract. The price for the plan is $20 less per month than the traditional service you would get on a contract. An example is Unlimited Talk+Text+Web is $79.99 versus $99.99 with traditional contracted service. That means it would take the person buying the phone 16.16 months to break even. Your typical customer needs to wait 22 months to get an upgrade and has spent $20 more per month for service. So if both wait to buy another phone until the traditional upgrade time of 22 months the contracted phone buyer has actually spent $116.75 more than the non-contracted customer (not including service taxes). I give credit to T-Mobile for being brave enough to try this out in the US because it was against what the US consumer really knew. But in the end people refuse to save money long term. They much rather save money now.
2. ahn (unregistered) posted on 16 Nov 2010, 08:33 0 0
It is true it is a better option in the long run, but you miss one important aspect. Tmobile created this plan to lure away people from ATT. but some People do not go to Tmobile because their speed and coverage is subpar compared to ATT. So yes, it is cheaper, but you do not get the same service...
3. Tycoon posted on 16 Nov 2010, 08:47 0 0
Not to mention, if it's a smartphone, data plans are required. It has gotten better since they are offering tiered plans now. On the low end, for an Even More Plus customer, it'll be $10 per month (at least that's what I was charged) or $240 over 24 months on top of the $20/mo ($480 over 24 months) because you are on a contract, plus the cost of the phone, which is $200, typically for a smartphone. If you opt for the $30 unlimited data plan, it's $720 over 2 years. The discounted phone doesn't seem to be such a good deal once you do the math. I've talked to a few customer service people and they all say the Even More Plus is the better deal. Just boils down to doing the math and whether or not you have the funds to pay for the fund outright.
4. jabowalker posted on 16 Nov 2010, 11:57 0 0
I have worked at the call center and at a couple different dealers, its how the plan gets explained to customers, in a third party dealer where we cant finance the phones we dont even tell people about the plans at all, if they come in and ask about it, the most of the reps make it sound like its the worst thing ever and never tell the customer that they can finance the phone, Sales reps traditionally want to get customers into what gets the rep paid, not what is best for the customer, That is the reason that this has been a failure so far, if i can get you into an even more plan which is what your used to anyway so you have less resistance and make more money on it, why would i possibly get you to the even more plus???
5. ssjassassin posted on 16 Nov 2010, 13:32 0 0
I find most of your comments reasonable. It does not meet every persons needs though it give options. What other provider offers you more than one option when it comes to buying service? As for network quality versus AT&T all i have to say is I am not a fan of any particular carrier. I have been working with phones for long enough to know that they all can offer the best of the best and the worst of the worst. AT&T is no better than T-Mobile when it comes to services where i'm located. I bet though I could find places where AT&T is better. I find that our quality of customer service is much better though. With your typical customer buying a G2 as an example they will burn through 200 megabytes in a week. It is unreasonable to think that a person who is buying a top of the line phone to only use that low amount of data. When it comes to dealers it is all about selling what you can. At direct stores with will choose to right-fit our customers. They may spend more on the phone but the customer will generally be setup with honest options and have a higher quality experience buying the phone. I am not intending to step on toes with that statement though it is still based on personal experience and customer feedback.
6. ssjassassin posted on 16 Nov 2010, 13:39 0 0
I did forget to mention activation fees only apply to contracted services. They also are paying $18 when they upgrade the phone when doing contracts.
7. ehump (unregistered) posted on 16 Nov 2010, 15:04 0 0
You forget one important concept. Money non is worth more than money later. If you are smart consumer you would know that. Finance & Economics 101
8. bocaccio (unregistered) posted on 27 Nov 2010, 12:58 0 0
c'mon, think of family plans too.
you can only save 20/month with even more plus family plans while you get 500 or more discounts (2 or more phones) on contracts. If you buy phones from amazon or wirefly, your savings on phones would possibly be more than 1000 dollars on contracts.