MetroPCS and Cricket start financing high-end handsets

MetroPCS and Cricket have both started to offer customers financing to help them purchase high-end handsets like the Apple iPhone 5; Neither carrier offers subsidized deals in which a major chunk of the phone is paid for by the carrier and in return the customer signs a two-year contract which locks him into the mobile operator for 24 months. Since both MetroPCS and Cricket don't have customers sign contracts, neither can lock in their customers for any time period which would certainly make subsidizing new phones very risky.

You can walk out the door with an Apple iPhone 5 from Cricket for just $105

So how can pre-paid carriers help some of their cash-strapped customers buy high-end handsets valued at $500-$700 or more? Both MetroPCS and Cricket are working with Progressive Financing to help offer customers low upfront payments on otherwise expensive smartphones. MetroPCS is also working with a company called BillFloat and the idea is to let a customer walk away with,say, an Apple iPhone 5 after putting up a small amount of money upfront and paying off the balance in monthly installments. Cricket customers can walk out of the store with an Apple iPhone 5 for just $105 upfront. After paying interest and repayment fees, the buyer will end up paying a lot more than the partly subsidized $500 that Cricket also offers the phone for, but BillFloat and Progressive don't require a credit check. The companies take their monthly payments straight from the borrower's bank account.

source: GIGaom

10 Comments

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posted on 13 Dec 2012, 22:05 1

1. Ravail (Posts: 182; Member since: 14 Oct 2011)

To bad their networks are a good as dial up..

posted on 14 Dec 2012, 22:27

9. skymitch89 (Posts: 1359; Member since: 05 Nov 2010)

Too bad you are wrong. I can only speak for Cricket because I have used their 3G modem (about 3 years ago), and their 3G speeds aren't all that bad, I was averaging about 1Mbps download (which is better than what I am getting from Sprint, an average of about .5Mbps).

posted on 13 Dec 2012, 22:15

2. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)

I'm really hoping sptint will buy both of these carriers.

posted on 14 Dec 2012, 04:50

5. Patrik69 (Posts: 4; Member since: 14 Dec 2012)

Sprint has a 5 year contract with Cricket till 2015.

posted on 13 Dec 2012, 22:44

3. cripton805 (Posts: 1484; Member since: 18 Mar 2012)

good idea

posted on 14 Dec 2012, 03:55

4. Topcat488 (Posts: 1396; Member since: 29 Sep 2012)

Hey, didn't the housing crisis start with trying to give cash-strapped customers loans... Whats the difference here? People should STOP trying to keep up with the Joneses... I think it's a bad idea.

posted on 14 Dec 2012, 17:55

6. Jyakotu (Posts: 852; Member since: 12 Dec 2008)

I don't think prepaid phones should be high end models, but mainly mid-tier.

posted on 14 Dec 2012, 19:11

8. cripton805 (Posts: 1484; Member since: 18 Mar 2012)

Why? They provide needed competition to keep prices low.

posted on 14 Dec 2012, 17:56

7. roscuthiii (Posts: 2233; Member since: 18 Jul 2010)

Is this an article on MetroPCS & Cricket or an advertisement for iPhone 5?

posted on 15 Dec 2012, 20:56

10. Fuego84 (Posts: 351; Member since: 13 May 2012)

I seen banners at cricket stores advertising that you can leave the store with a Samsung galaxy s3 for $49 . I'm thinking about going to inquiry about that but I'm on T-Mobile. Not sure if it's worth over paying though.