



Verizon Communications CEO Lowell McAdam [Image Source: Bloomberg]

Source: Reuters

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T-Mobile Has It Right
By dailytizzle on 1/7/2013 9:45:58 PM , Rating: 2
The quicker Verizon and AT&T and Sprint and the other post-paid carriers in the US pay for the up-front subsidy the more $$$ they make within the 2yr contract term. No one really knows except for the carriers when that occurs. I have read people online stating after 4-5 months the per month plan cost they charge effectively pays for the subsidy. The remaining months until you upgrade they bank.

T-Mobile is offering this because they are bleeding customers. This change is pro consumer. The other carriers don't like it because they make less $$$ as a result. Why do out think AT&T has gotten more stingy on early upgrades? Because it costs them profit to let customers upgrade sooner. I'm convinced the major 3 US carriers collude anyway on plan pricing.

Cheaper plans is what everyone wants. If AT&T offered cheaper plans like what T-Mobile is proposing I'd buy the phone full price at Best Buy and do the 0% interest for 18 months on it and decide when I want to pay it off within the 18 months. Plus I'd consider keeping the phone for at least a full 3yrs.


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