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