T-Mobile to hang up on Classic Plans in 2013

T-Mobile to hang up on Classic Plans in 2013

T-Mobile USA will sunset its Classic Plans in 2013 and say good bye to device subsidies. The carrier’s CEO, John Legere, today announced that future subscribers will pay an upfront fee for handsets and tablets and then pay the remaining balance over monthly installments. 

This is a rather large deal as all other top players in the industry have subsidized devices for consumers just so long as they agreed to service over the next two years. As of today, T-Mobile offers two options for customers: Classic, with the subsidy and two-year contract and Value, where customers pay full price for a  smartphone but get a lower monthly rate.

Obviously part of a strategy to bring aboard the Apple iPhone, Legere indicates that the plans will be “fair and simple”.  Adding that consumers may be able to purchase the “most iconic device in the world” at $100 and then break it down over 20 months at $15-$20 per month, the CEO seems optimistic that the public will embrace the changes.

Via Fierce Wireless

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Scott Webster
Scott Webster 6570 posts

Scott has been running AndroidGuys since 2007 and loves nothing more than reading up on the latest smartphone rumors. His other mobile efforts can be found on Android Update (CNET) where he covers Google's mobile platform.

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25 Comments

  1. Chris Moeller
    December 06, 15:20 Reply

    Awesome! I for one think that up front costs for the service, separated from the device cost is the way to move forward.

    I’m not sure why the company would be doing this, aside from customer benefit, since they can’t hide extra charges in the “monthly fee” as easily- consumers won’t be spending $800 on a phone unknowingly over the life of their contract.

  2. Michael Jansen
    December 06, 15:47 Reply

    I see no problem with this, I’ve been on their value plan for a year now. And they do sometimes have deals where you can get phones at a cheaper upfront cost for value plans, but you pay the difference off each month for 20 months.

  3. justdaven
    December 06, 16:14 Reply

    Actually it is basically the same thing, from their stand point, but the early termination fees which the courts said violates anti-trust. Calling it financing the phone, rather than requiring a contract, lets them take less risk, and have the same reward. Most people won’t replace their phone ’til they pay off the last one… If they do they have to pay for both…

    • Ben Pike
      December 07, 09:18 Reply

      You still sign a 2 year contract with ETF on the Value Plan…

      So you if you want out before the 24 months is up? It’s the ETF + Whatever is being financed at the time…

      • justdaven
        December 07, 09:47 Reply

        There was no contract, except the finance agreement.

        • Ben Pike
          December 07, 09:58 Reply

          That was Even More Plus, I do believe, and that is no longer offered.

          • justdaven
            December 07, 10:52

            Ah. I guess I lucked into a window….

  4. paxmos
    December 07, 19:35 Reply

    Is that a woman with scarf?

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