Telecom Lead America: T-Mobile USA CEO John Legere has reiterated his commitments for assisting mobile users for getting out of confusing contracts.
T-Mobile USA CEO says these bold moves serve notice that T-Mobile is canceling its membership in the out-of-touch wireless club.
Fox News reported that the move by the country’s fourth-largest wireless carrier sets up what will be a closely watched test of how consumers react when presented with the full cost of their favorite devices.
The standard issue iPhone 5, for instance, sells for $199 with the subsidy and a two-year contract, but it costs consumers $650 if bought without carrier support.
T-Mobile says qualifying customers can get an iPhone 5 for $99.99 down, plus monthly payments.
T-Mobile is the only major U.S. wireless company to offer iPhone 5 with no annual service contract plus unlimited talk, text and Web on a screaming-fast nationwide 4G network.
One possibility is that consumers will opt for smartphones that are cheaper than Apple’s iPhone and Samsung’s Galaxy, as they do in other unsubsidized markets, an unfavorable development for the market leaders.
The move could also backfire on T-Mobile, which has already bled more than four million valuable contract customers over the past two years, losing buyers to carriers like Verizon Wireless, AT&T or Sprint Nextel, which will still follow the subsidy model.
“This is an industry filled with ridiculously confusing contracts, limits on how much data you can use or when you can upgrade, and monthly bills that make little sense. As America’s Un-carrier, we are changing all of that and bringing common sense to wireless,” Legere added.
T-Mobile says its latest moves will address consumer frustration with the unnecessary cost and complexity of wireless.
The moves — as claimed by T-Mobile — will enable customers to get the most popular smartphones whenever they want for the lowest upfront cost.
T-Mobile also debuted its blazing fast 4G LTE network service in seven major metropolitan areas.
T-Mobile’s new offerings
Customers start with one line at $50 per month for unlimited talk, text and Web with 500MB of data. Customers can add a second phone line for $30 per month, and each additional line is $10 per month. They can also add 2GB of data for $10 per month more per line. Unlimited 4G data is $20 more per month per line.
T-Mobile, the only major U.S. wireless company to stop requiring consumers to sign annual service contracts, is adding several 4G LTE capable devices, including the upcoming availability of iPhone 5, as well as the Samsung Galaxy S 4, BlackBerry Z10, T-Mobile Sonic 2.0 Mobile HotSpot LTE, Samsung Galaxy Note II and HTC One.
Meanwhile, T-Mobile launched its 4G LTE network in seven major metropolitan areas, including Baltimore; Houston; Kansas City; Las Vegas; Phoenix; San Jose, Calif.; and Washington, D.C.
The 4G LTE network is expected to reach 100 million Americans by midyear and 200 million by the end of 2013.
