T-Mobile announces it will go with all Value Plans in 2013

T-Mobile announces it will go with all Value Plans in 2013
Starting next year, T-Mobile customers won't have to decide between signing up for the Value Plan or the Classic Plan. The nation's fourth largest carrier has decided to do away with the Classic Plan option starting in 2013. For T-Mobile, the numbers show that because of the smaller subsidy T-Mobile lays out with the Value Plan, it takes $200 to $250 less for T-Mobile to acquire a Value Plan customer than one who chooses the Classic Plan, and that customer usually stays one to two months longer with the carrier and will spend $25 to $50 more.

For the customer, the Value Plan gives them the lowest out of pocket cost to buy a new handset using the Equipment Installment Plan. It also allows a customer to bring his own device to the carrier. In fact, T-Mobile says that 12% to 15% of Value Plan activations are BYOD related. And while apparently that won't matter starting in 2013 when Apple devices are sold by T-Mobile, BYOD allows T-Mobile customers to bring an unlocked iPhone to the carrier. Currently, 1.7 million unlocked Apple iPhones are using the carrier's pipeline.

Going forward with one plan should allow for less confusion, and with the limited subsidy offered by the carrier for new handsets, it should have a positive impact on the bottom line of corporate parent Deutsche Telekom.

source: TmoNews



32. tidus28

Posts: 26; Member since: Feb 08, 2012

i think this was a terrible idea

33. tidus28

Posts: 26; Member since: Feb 08, 2012

i dont see them succeding with this and what happens to people with a classic plan already?

34. illxander

Posts: 5; Member since: Sep 19, 2012

I'm pretty sure we have to upgrade before this goes into effect. I'm so glad my upgrade is Dec 30th

27. al3ksoj3di

Posts: 4; Member since: Dec 07, 2012

This plan made sense when it was the old Even More Plus plan with NO contract. The benefit of signing a contract nowadays should be getting a discounted device but not according to TMO. You're committing to a 2 year contract and paying full price for your device, somebody please tell me where the "Value" is?

35. illxander

Posts: 5; Member since: Sep 19, 2012

This is What I explain to them every time I go into a store. I am not signing a contract & paying full price for my device. Let alone that if you cancel in the middle you still have to pay the rest of the phone price as well as the ETF. And that flexible upgrade means pay the remainder of the balance for the device that you no longer want to use or has broken and then upgrade. The purpose of the contract is the subsidy, I'm not paying for my device and signing a contract.... pick one TMO.

25. archangel9

Posts: 233; Member since: Feb 07, 2010

Very smart move and a sensible one.KUDOS Tmobile

24. CMonster

Posts: 7; Member since: Dec 04, 2012

How far does BYOD go? The problem with the SIII and its original quadcore processor was that the US LTE network wasnt ready for it, so Samsung made the dualcore version for the US. What if a later technology isnt compatible with the US network and someone attempts to bring an unlocked version of that phone to tmobile? Maybe I'm just confused as to the SIII quard vs dual core situation, but this could be a potential issue, could it not?

21. Droiddoes unregistered

This will so bite them in the ass. I cannot tell you how many people a week I have to turn away because they are on the "value" plan because they think they have an upgrade and they don't. The "awesome" reps at tmobile NEVER tell customers that part, that they do not qualify for subsidized pricing on a phone. I do convert a lot of folks to AT&T though, so thanks value plan!

23. Cellphonator12

Posts: 29; Member since: Nov 19, 2012

After a whole year of test it hasn't and that's the reason why they decided to drop the Classic plan.

18. Moneyman12

Posts: 3; Member since: Oct 10, 2012

No phone is $760 except the note 2; I don't understand where that's coming from. The math is very simple, the smartphones range from $40 to $360 for your upfront cost. I understand that a family plan can be expensive upfront but most od the smart phones that are free cause people to deactivate because the phone is so bad and are old inventory that a company is looking to use as bait to attractive customers.

31. Tycoon

Posts: 28; Member since: Nov 10, 2010

I just choose to stagger phone purchases and/or ebay. My son is 15 and he won't have the newest and hottest device. My wife is anti-tech when it comes to phones. However, I just bought her the Nexus 4 due to the price. I can't get the Nexus devices due to the memory size, but if they get that right, I may put the whole house on that Nexus tip. Point is, $350 for a 16GB Nexus device makes other manufacturers' prices look overpriced... If my three family members get Nexus devices, I'm out $1,000... not too bad, plus I save on a monthly basis by being on the Value plan... or I can run to Straight Talk for $45 for unlimited everything...

17. lubba

Posts: 1313; Member since: Jan 17, 2011

I can see one phone per family as this new change is only good for single individuals. Wanna add a family plan? Got 600-800$ to spend today? Be serious! Wanna upgrade, looking at least 300$ for one person. Lets see, $20 added to bill x24 months=480. Phone price day of purchase $300-120=180$ up front. 480+180=760. No different.

26. al3ksoj3di

Posts: 4; Member since: Dec 07, 2012

Exactly dude, If I'm on a family plan with 5 lines and don't want to add a monthly payment charge of $20 per phone , I have to pony up to $2000 for 5 new phones. Ridiculous! The CEO said last year that this is what he wanted to happen but never thought it would. This new pricing is definitely going to hurt families.

10. gwuhua1984

Posts: 1237; Member since: Mar 06, 2012

So I'm guessing there won't be any rebates now?

16. Deadeye37

Posts: 314; Member since: Jan 25, 2011

I'm sure they'll be doing the rebates still. They seem to do sales on Value plans frequently that require MIR.

6. lubba

Posts: 1313; Member since: Jan 17, 2011

...and for tmo to welcome the many great devices found on other carriers.

5. Jyakotu

Posts: 868; Member since: Dec 12, 2008

So basically, it's like T-Mobile USA is going to be one big prepaid national carrier? I guess this could work for this, since the plans will be cheaper and most newer unlocked phones work with T-Mobile USA. BYOD + lower cost Value Plans will definitely be their niche. Now all they just have to do is get their coverage improved.

19. meowcenary

Posts: 187; Member since: Apr 13, 2012

You are still tied to a two year contract, so I would not call it prepaid.

37. Captain_Doug

Posts: 1037; Member since: Feb 10, 2012

They do have a prepaid option though that is very competitive.

3. lubba

Posts: 1313; Member since: Jan 17, 2011

I just don't have 300-700 dollars to spend on a cell phone honestly. I go for whatever is cheapest at the time because that's all I can afford. If tmo's idea of getting rid of subsidies work for them, go ahead. Honestly it hasn't hurt ATT and Verizon. And like most people say, you get what you pay for.

4. tthenri21

Posts: 1; Member since: Dec 06, 2012

still going to be cheaper then gettting verizon or att

7. cjjohnson86

Posts: 29; Member since: Jan 05, 2012

actually even paying the full price for a phone under the value plan is still cheaper in the long run when compared to ATT or Verizon. My share everything plan with Verizon costed $130 a month, times that by 24 months and tack on a $249 phone. $3369.00+. My t-mobile was 59.99 a month for the exact same plan, + $649= $2088.76. thats a $1280.24 difference, but then again, all people look at is the short term cost.

9. Nonono

Posts: 22; Member since: Mar 26, 2012

but then again tmobile is basically giving you what pre paid carriers have been giving you but with a contract which doesnt make sense anymore. If your going to use tmobile and buy a phone full price just go with solavei whichis a prepaid carrier on tmobiles towers with unlimited everything and 4gb of 4g speed for $50. Compare it to tmobiles value plans and you get a better deal but without being tied to a contract. nexus 4 = $300. So $50 X 24 months = $1200 add the nexus 4 and it comes out to $1500.... Best deal in the U.S so far. Try and find a better deal

14. ruthayy

Posts: 16; Member since: Jul 21, 2012

it is a contract because you get to break it down in payments, no interest either, as well as truly unlimited. sure you can go month to month and pay the full amount, but it will not be truly unlimited the most you will get is 5g.

30. Tycoon

Posts: 28; Member since: Nov 10, 2010

The contract is only in place if you choose the equipment installment plan. If you pay for it outright, you don't have to worry about a contract. How is Straight Talk through Walmart? I talked to them and they said they are truly unlimited with their data (not 2GB, 4GB, 5GB, etc), plus the normal unlimited talk and text. I suppose they use T-Mobile lines... just have to get a Straight Talk SIM.

8. androiddownsouth

Posts: 598; Member since: May 02, 2012

Let's be honest though ya'll, cheaper is not always better. More often than not, as lubba said, you get what you pay for.

11. Nonono

Posts: 22; Member since: Mar 26, 2012

then again look at the nexus 4 ...... the U.S needs a better model then the one we have now where carriers have all the control and the consumer has none

12. ruthayy

Posts: 16; Member since: Jul 21, 2012

the value plan downpayment is still less than what you would pay if you got the phone discounted on the classic plan. you leave paying less with the value. i guess you if you want to pay more within a 24 month term, well that's your decision.

15. Deadeye37

Posts: 314; Member since: Jan 25, 2011

Thats if you decide to buy the phone outright. Most people choose to go with the EIP (Equiptment Installation Plan). So out of pocket on the spot you only have to pay something similar to what the other carriers are charging upfront for their phones. The cost of the rest of the phone is broken into payments over 20 months. Once the 20 months are up, you suddenly have a drop in your monthly payment until you decide to get a phone again via EIP. The Value plans are really inexpensive and the EIP payments range from $5-20/mo depending on how cheap/expensive the phone is. The best idea is to wait for T-mo to do a sale that drops the downpayment to 0 (usually through mail-in rebates). They do those about every other month.

20. meowcenary

Posts: 187; Member since: Apr 13, 2012

When I secured my HTC 8x T-Mobile charged me $150. THe rest was a monthly $20 payment in conjunction to my monthly $160 phone bill. I aim to pay off the remain charge next billing cycle, so my significant oher could get her own HTC 8x.

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