T-Mobile to Abandon Phone Subsidies

Kevin Fitchard, writing for GigaOM:

T-Mobile USA CEO John Legere confirmed that the iPhone will be among the Apple products that T-Mobile sells next year, but he said that T-Mo will sell it in a far different way than other carriers. T-Mobile is eliminating all device subsidies in 2013, requiring new customers to pay full price for their phones up front, buy it on installment or bring their own unlocked devices, Legere said speaking at corporate parent Deutsche Telekom’s Capital Markets Day in Bonn. […]

T-Mobile will have to explain to customers that they will actually save money over the length of a two-year contract by paying a lower value plan rate. And while there would be truth in T-Mo’s claims, it’s still a hard sell to many consumers, especially with the iPhone’s huge price tag dangling in front of them.

Could be a huge change to the U.S. phone market if it works.

★ Thursday, 6 December 2012