Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I read that T mobile is going essentially "all pre paid" with unlimited calls, data and texts for $70 per month. No longer will they directly subsidize hand set purchases either but they will offer a line of credit to buy them. Apparently they have decided rightly or wrongly that they cannot directly compete with the big dogs AT&T or Verizon. So here are some questions I would ask:
1. T Mobile has a much worse network than either AT&T or Verizon. AT&T learned a hard lesson when the Iphone became such a huge hit and they found out that their FAR superior network was unable to handle the traffic strains the Iphone caused which is why they adopted data caps along with Verizon. So assuming T Mobile gets the Iphone, how do they think their much inferior network will handle all that traffic?
2. The credit program for handsets is nice but consider the cost: $70 a month for the plan and probably at least another $40 for 2 years for an Iphone 5. That would put the total cost a month at about $110 which is more than AT&T charges for a new Iphone with a 2 year contract. It is true that after paying off the handset, the customer would see value over AT&T but most people think about "here and now" and not 2 years from now. How will T Mobile overcome that problem?
3. Verizon has LTE almost everywhere in the USA. AT&T is quickly adding more major metros to their LTE offerings. T Mobile only has LTE in Las Vegas and Kansas City. Why would anybody that lives anywhere else want to pay for a 4g/LTE phone that only works at 3g speeds?
4. What about Metro PCS? T Mobile bought them and they use non compatible technologies so how much is T Mobile going to spend to upgrade millions of Metro PCS customers so that their phones will work on both networks?
5. T Mobile has said they intend to keep the Metro PCS brand just as it is. If that is true and T Mobile does upgrade Metro PCS users to be able to use T Mobile's network, what is the incentive to have a pre pay T Mobile plan when the same plan is available from Metro PCS for $45 a month?
I read that T mobile is going essentially "all pre paid" with unlimited calls, data and texts for $70 per month. No longer will they directly subsidize hand set purchases either but they will offer a line of credit to buy them. Apparently they have decided rightly or wrongly that they cannot directly compete with the big dogs AT&T or Verizon. So here are some questions I would ask:
1. T Mobile has a much worse network than either AT&T or Verizon. AT&T learned a hard lesson when the Iphone became such a huge hit and they found out that their FAR superior network was unable to handle the traffic strains the Iphone caused which is why they adopted data caps along with Verizon. So assuming T Mobile gets the Iphone, how do they think their much inferior network will handle all that traffic?
2. The credit program for handsets is nice but consider the cost: $70 a month for the plan and probably at least another $40 for 2 years for an Iphone 5. That would put the total cost a month at about $110 which is more than AT&T charges for a new Iphone with a 2 year contract. It is true that after paying off the handset, the customer would see value over AT&T but most people think about "here and now" and not 2 years from now. How will T Mobile overcome that problem?
3. Verizon has LTE almost everywhere in the USA. AT&T is quickly adding more major metros to their LTE offerings. T Mobile only has LTE in Las Vegas and Kansas City. Why would anybody that lives anywhere else want to pay for a 4g/LTE phone that only works at 3g speeds?
4. What about Metro PCS? T Mobile bought them and they use non compatible technologies so how much is T Mobile going to spend to upgrade millions of Metro PCS customers so that their phones will work on both networks?
5. T Mobile has said they intend to keep the Metro PCS brand just as it is. If that is true and T Mobile does upgrade Metro PCS users to be able to use T Mobile's network, what is the incentive to have a pre pay T Mobile plan when the same plan is available from Metro PCS for $45 a month?
1. T-Mo's coverage map is not as extensive, but unless you live out in the sticks it should not matter. I had T-Mo for 8 years and have been on Verizon for nearly two, and my service has been equal between them. There is no need to argue which is better, but I find Verizon to be mostly hype.
2. T-Mo is betting that consumers would rather pay a set price for unlimited data, voice, and I believe messaging than to subscribe to a tiered plan which may place limits on a particular service, or, cost $90+ a month. The kicker is that there will be no two-year contracts, so customers will not be tied to their plan. As a result, they will no longer offer subsidized phones which obviously means that consumers will pay full price for the phone. To help offset the initial cost of the phone, T-Mo will allow customers to pay off the phone in monthly installments. In the end it should come out to about even when compared to the typical two-year model, but like I wrote; customers will not be tied to a two-year contract.
When I was on T-mo a few years ago they had the option to pay off your phone, even subsidized phones if I remember correctly, over the course of a few months.
3. As far as I know T-Mo has a full 4G coverage map. I could be wrong, though. And if T-Mo's coverage/network was so lame, then why was AT&T so eager to purchase it, seeing as how they were more interested in the network than the customers?
4/5. My current understanding is that T-Mobile plans to phase out the Metro PCS network over the next 2-3 years and replace the entire network, including all the phones. Prior to the full network conversion, Metro PCS phones will slowly change from CDMA to GSM/HSPA phones. CDMA/LTE phones should work until the full conversion is complete, though. I also believe that T-Mo is going to do away with Metro PCSs VoIP service.
You really have to look at where you live. Most people aren't shooting to all corners of America on a regular basis. I'm not going to pay Verizon's ridiculous prices, on the off chance I decide one day to go to freaking, North Dakota for whatever reason.
I work, live, and go to school in the DC area, and Tmobile provides excellent service here, for considerably less than Verizon, and I like there new plan idea. People have no idea how screwed you get with subsidized phones. Sure you Get your brand new phone right now, but in the long run, you're paying more.
1. T-Mo's coverage map is not as extensive, but unless you live out in the sticks it should not matter. I had T-Mo for 8 years and have been on Verizon for nearly two, and my service has been equal between them. There is no need to argue which is better, but I find Verizon to be mostly hype.
2. T-Mo is betting that consumers would rather pay a set price for unlimited data, voice, and I believe messaging than to subscribe to a tiered plan which may place limits on a particular service, or, cost $90+ a month. The kicker is that there will be no two-year contracts, so customers will not be tied to their plan. As a result, they will no longer offer subsidized phones which obviously means that consumers will pay full price for the phone. To help offset the initial cost of the phone, T-Mo will allow customers to pay off the phone in monthly installments. In the end it should come out to about even when compared to the typical two-year model, but like I wrote; customers will not be tied to a two-year contract.
When I was on T-mo a few years ago they had the option to pay off your phone, even subsidized phones if I remember correctly, over the course of a few months.
3. As far as I know T-Mo has a full 4G coverage map. I could be wrong, though. And if T-Mo's coverage/network was so lame, then why was AT&T so eager to purchase it, seeing as how they were more interested in the network than the customers?
4/5. My current understanding is that T-Mobile plans to phase out the Metro PCS network over the next 2-3 years and replace the entire network, including all the phones. Prior to the full network conversion, Metro PCS phones will slowly change from CDMA to GSM/HSPA phones. CDMA/LTE phones should work until the full conversion is complete, though. I also believe that T-Mo is going to do away with Metro PCSs VoIP service.
You really have to look at where you live. Most people aren't shooting to all corners of America on a regular basis. I'm not going to pay Verizon's ridiculous prices, on the off chance I decide one day to go to freaking, North Dakota for whatever reason.
I work, live, and go to school in the DC area, and Tmobile provides excellent service here, for considerably less than Verizon, and I like there new plan idea. People have no idea how screwed you get with subsidized phones. Sure you Get your brand new phone right now, but in the long run, you're paying more.
That is true but most consumers only think about "right now" and that is something T Mobile will have to overcome.
I'll take unlimited souped up 3g, over 2gb of true 4g anytime. That's just me though. I don't need faster data, as much as more data. And for me, and what I do, Tmobile is more than fast enough, and I get all I want.
And you can still get a "subsidized" phone. You pay a downpayment, and then the rest of the phones cost gets divided by 24, and that just gets added to your bill.
You're right, all people care about really is that cheaper phone price up front, and you can get that from them. The only thing that's really changed, is that now you aren't locked into the contract.
If you leave Tmobile, you'll still owe them for the phone, but that' it. No cancellation fee.
I wish them luck, but I don't think it will work out too well. Yes, some people will like it, but people who want a high-end phone will continue to look at contract plans. If T-Mobile doesn't offer what these customers--the most profitable, highest ARPU customers I might add--want, they'll get it from another carrier, and T-Mobile will continue to flounder.
What T-Mobile has is a network coverage problem, especially in 3G/4G data. With their new infusion of cash from the Metro PCS merger, they need to pull a Verizon and upgrade their ENTIRE home network to 3G/4G over the next two years, and strike 3G and 4G data roaming agreements in areas they don't cover.
Other carriers have no trouble selling high-end phones on contract, which tells me T-Mobile is trying too hard to fix what's not broken, and not hard enough to fix what is.
Unfortunately, I see T-Mobile racing to the bottom, with Sprint, AT&T, and VZW in no hurry to follow.
Last edited by Thegonagle; 03-12-2013 at 10:02 PM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
