T-Mobile ending subsidized phones.

Some people will love it, some will hate it. Here in the states, we are spoiled, do the majority will hate it. If it goes too bad, then they'll go back to subsidies. To keep it during hatred, the other companies will do the same. I don't mind as I buy my own phones even when I was in a contract to try the latest phones. Hey, you win some, you lose some

Sent from my Rooted Gameboy

If they're doing it the way they generally have offered as of late, they may not do a carrier subsidy the way Big Red/Yellow/Blue do, but they'll allow you to do a "handset mortgage", where you can pay a "down payment" when you get the phone and then the loan will be a separate line item until you pay it off, which can be at any point.

I actually prefer this model because it allows you to pay more or less to decrease the amount still owed for your phone and potentially decrease your bill substantially once you're done paying the phone off. It will also allow for quicker upgrades because you won't have to wait two years until your contract rolls around again.

I'm not opposed to this model at all.

Joey

I'm in Charlotte, and the store I went to has already gone through this transition. The plan price went down approximately $30. The down-payment was similar to the advertised price for the subsidized phones, and the monthly payments were $20, for twenty months. Overall, I'll pay $550 for phone retailed to cost $599, with a slight savings on the rate plan.

The big savings come after twenty months, when the phone is paid off. I'm not one to upgrade immediately, so I may save money on the rate plan for 6-12 months before buying a new phone. Where before, even if I didn't buy a phone, I was paying the monthly rate that included the subsidy.

ddizzy81 said:

So u can still get a new phone without paying retail?

Sent from my SGH-T999

Click to expand...

Click to collapse

Yes and No. ** I do not work for T-Mobile, but this is how I understand things **

EIP has existed for a very long time now and will continue to exist. T-Mobile is simply being upfront with customers instead of building in a subsidy into a rate plan. In almost every case, the customer wins.

Here's one way to look at it. Value Plan + EIP = Classic plan Either way, the upfront costs are similar. In one case, you call it a downpayment, in another you call it a price w/ 2 year contact extension. EIP is typically 20 months, which is better than the 24 months a full blown 2 year extension will be. Again, as far as the initial cost of the phone, the downpayment is essentially equivalent to the previously advertised price of the phone with contract.

This model does a few things from the perspective of a customer. It gives you the option of purchasing phones outright, or opting to get what essentially is a 20 month interest free loan from t-mobile on up to $400 towards the purchase price of a phone. When that loan is paid off, you are left with a nice and small bill for just the services you use, the voice, data, and text services provided by T-Mobile. This opens the door wide open for people to bring unlocked devices over to T-Mobile, and enjoy a low price monthly rate plan. Previously, the best way to do this was to buy an unlocked phone, buy a carrier phone with a 2-year extension, and sell the carrier phone and put that towards the price of the unlocked phone.

This really is a win for pretty much all consumers. People who want a low initial cost can opt for the EIP, people who bring their own devices can choose to do so and enjoy a low monthly rate, and finally people who keep their devices for a long time will enjoy a low rate after they complete their EIP payments.

The only time this is NOT advantageous is if you decide to break the contract prior to the end of the EIP term + value plan contract. For example, if I buy a new phone, start a EIP plan for 20 months, and sign up for a 2 year value plan, I would have to pay a $200 penalty to break the value plan, and also $400 to close out the EIP. Of course, the way to get around this is to sell the phone to repay the EIP.

ddizzy81 said:

T-Mobile announced that in the coming months they will end discounted phones with a contract and go the European way and make you pay retail for any phone yet your monthly bill will go down a lot in price. How do you guys feel about this.?

Sent from my SGH-T999

Click to expand...

Click to collapse

as far as i know, t-mobile has already offer $50 contract free service in NYC. that includes 4g network, unlimit calling, texing, web, etc.
I am current simple mobile user, $40 each month, and it is great!
I am sure if ATT, Verizon, don't take any action, most of their customers will walk way.

About a month ago a tmo rep told me they are doing this soon.

O well doesn't bother me lol

Sent from my SGH-T999 using xda premium

Yeah its not all that new . Tmobile has been allowing people to break up their payments since they announced their even more plus plans. I think its a great option in present times for those that can't afford to fork out 500$ in one transaction.

Sent from my SGH-T999 using xda app-developers app

They already have offered this its called the "Value Plans", as apposed to the "Classic Plans" the value plans are only offered at t-mobile stores and since sept they have offered a truly unlimited data option on the value plan. thats the plan i have been on since i joined t-mobile in sept. the gs3 for me was 149.99 down with $20 for 20 months. (549.99) and my rate plan is 69.99 for unlimited everything. The one thing i dont like about the value plan is that even though you are paying full price for your phone in the end you are still on a 2 year contract with $200 early termination fee. and if you dont use all the minutes and want to lower your bill thats a whole new 2 year contract. T-mobile really shouldnt due that to its customers.

Chuckatron said:

They already have offered this its called the "Value Plans", as apposed to the "Classic Plans" the value plans are only offered at t-mobile stores and since sept they have offered a truly unlimited data option on the value plan. thats the plan i have been on since i joined t-mobile in sept. the gs3 for me was 149.99 down with $20 for 20 months. (549.99) and my rate plan is 69.99 for unlimited everything. The one thing i dont like about the value plan is that even though you are paying full price for your phone in the end you are still on a 2 year contract with $200 early termination fee. and if you dont use all the minutes and want to lower your bill thats a whole new 2 year contract. T-mobile really shouldnt due that to its customers.

Click to expand...

Click to collapse

Well to be honest they kinda have to keep that early termination fee, because basically if they don't what's to keep you from leaving after you only payed 149.99 for a 800 phone. Even if you still decide to leave you only end up paying about 350. 200 fee plus the 150 you put down. This is coming from a guy who really dislike tmobile I'm just with them because I almost don't pay anything on a 5 line account. Really there's not much difference between classic and value when it comes to buying a phone both tie you to a 2 year contract and early fee.

Sent from my SGH-T999 using xda app-developers app

Isn't this pretty much the same thing as their Value Plan they've had for some time now? I've been on that plan for a bit over a year now. For me, the plus side is that over the course of a two year period, I'll end up saving roughly $1200 for two lines compared to my previous plan with everything unlimited.

The downside is of course the unsubsidized pricing of all the phones...completely ineligible for any special promotions, as well. If T-Mobile keeps that same plan model, people may find themselves paying for multiple devices at a time if they run into mishaps (theft, damage, etc.). Even with insurance, you'll pay a pretty penny for a replacement but will still be responsible for paying off the original. This would be a big adjustment for a lot of people in many ways, not just financially.

It will be interesting to see how this plays out.

Edit: Chuck beat me to it LoL. I'm so not used to typing novel-length msgs on a mobile xD

Sent from my SGH-T999 using xda app-developers app

So how the phone insurance will work, will tmobile offer this option I doubt. I'm not referring manufacturer 1 year but long term one.

Sent from my SGH-T999 using xda app-developers app

ddizzy81 said:

If they offer that. Then I'll be okay with that. But I'm not OK with paying 5-600 dollars for a phone...I got more important things to pay for lol. But then again on the bright side the bill per month is gonna drop sooo much

Sent from my SGH-T999

Click to expand...

Click to collapse

LOL...pay now, pay later. do the math. if youre on a classic plan, you still pay full price for the phone, you just pay for it a little a time added onto your monthly bill. so, you are okay with paying 5-600 dollars for a phone...

dito33 said:

So how the phone insurance will work, will tmobile offer this option I doubt. I'm not referring manufacturer 1 year but long term one.

Sent from my SGH-T999 using xda app-developers app

Click to expand...

Click to collapse

Don't see why they would stop offering the extended insurance. If you're going to be paying for you're phone for 2 years you might as well have insurance that also extends the warranty for that long.

Sent from my SGH-T999 using xda app-developers app

LiquidGlow said:

The downside is of course the unsubsidized pricing of all the phones...completely ineligible for any special promotions, as well. If T-Mobile keeps that same plan model, people may find themselves paying for multiple devices at a time if they run into mishaps (theft, damage, etc.). Even with insurance, you'll pay a pretty penny for a replacement but will still be responsible for paying off the original. This would be a big adjustment for a lot of people in many ways, not just financially.

Click to expand...

Click to collapse

Actually the promos DO apply. The last sale was a zero down sale, so you get your down payment back as a rebate. So instead of a $600 phone it's only $400. It's no different than a free phone with a higher monthly payment.

I haven't had a plan for years. If you look you can find a deal on craigslist sometimes ebay