Back in December 2012 we first began to take serious note of what T-Mobile was hoping to accomplish as it began to hatch its "Un-Carrier" plot to take the mobile world over from AT&T, Verizon Wireless and Sprint. We covered the general plan of attack in detail back then, which included delivering on LTE, moving to non-contract plans, providing unsubsidized mobile devices, unbundling plans and mobile devices from each other and providing an explicit - not implicit - promise to deliver extraordinary value to its subscribers, both old and new.
Today we can see the final results of all the work that has gone into the T-Mobile Un-Carrier plan as the company has finally unveiled and launched it for real into the marketplace. All that's left is to turn the plan into a revenue windfall.
The company today officially announced the series of moves noted above, with the highlight of the show - at least in my opinion - being the grand opening (or "lighting up" as a communications person might put it) of its long awaited LTE network. The company also announced that in just a few short days all of its T-Mobile subscribers will finally be able to gain access to the iPhone. This may all sound ho-hum to AT&T and Verizon Wireless customers but in the land of T-Mobile it is huge news.
Before we continue, let us offer some words of advice. We aren't going to try and do the math on comparing what you might save with T-Mobile's new approach vs. Sprint, AT&T and Verizon Wireless. Everyone needs to take a careful look at their current plans vs. T-Mobile and do the homework, as each subscriber will have potentially unique scenarios. Do the homework and go to T-Mobile fully informed.
iPhone Nirvana
OK, first things first, let's get right to the iPhone, because we believe this is probably more important to many T-Mobile customers than anything else. But first, a very important note - and this is true for any customer looking to purchase an iPhone or one of the other high end smartphones T-Mobile will offer (including the BlackBerry Z10 and the Galaxy S4) - you need to be a "well-qualified customer" to get the new toys.
The wording from T-Mobile goes something like this: "’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 the iPhone 5 with no annual service contract plus unlimited talk, text and Web on a ‘screaming-fast nationwide 4G network.’" And because there are no annual contracts, customers make the decision when to upgrade their devices - not the carrier.
John Legere, president and CEO of T-Mobile USA puts it this way: “This is an important day for people who love their iPhone but can’t stand the pain other carriers put them through to own one. We feel their pain. I’ve felt the pain. So we’re rewriting the rules of wireless to provide a radically simple, affordable iPhone 5 experience — on an extremely powerful network.” Nothing like channeling a little Bill Clinton, but there we are.
"Screaming-fast" of course refers to LTE but we need to note that the LTE roll-out initially includes only seven major metropolitan areas: Baltimore, Houston, Kansas City, Las Vegas, Phoenix, San Jose and Washington, D.C. The rest will have to settle for T-Mobile's existing 4G network until more cities can be added to the roll-out. Still, T-Mobile has to start somewhere and this is a very good start.
T-Mobile expects the new 4G LTE network to reach 100 million people by mid-year and 200 million nationwide by the end of 2013. The company’s 4G HSPA+ network can currently reach 225 million people in 229 metropolitan areas.
More specifically, the iPhone 5 will be available for qualifying customers with T-Mobile’s Simple Choice Plan (more on this below) for $99.99 down and $20 per month for 24 months. That adds up to $579.99 for an iPhone 5. Of course you end up owning the phone, and perhaps you can find a buyer up front for $640!
T-Mobile is also putting the iPhone 4S and iPhone 4 in play in select markets, but the deal on the 4S is awful compared to the iPhone 5 - those "qualifying customers" can get the iPhone 4S for $69.99 down and $20 per month for 24 months - who isn't going to cough up the extra $30 for the latest and greatest? The iPhone 4 will be available for $14.99 down and $15 per month for 24 months - $374.99. Is that better than paying $0 at AT&T or Verizon? Again, do the homework.
Meantime, "qualifying buyers" means that financing will be available on approval of credit online and in participating locations.
Simplifying the Plans
By "simplification" T-Mobile is not pulling any punches. The company literally means that it will offer one affordable "Simple Choice" plan for unlimited talk, text and Web services on a completely no-contract basis. Subscribers will never need to sign another annual service contract, and customers will be free to get whatever smartphones they want, whenever they want them, for what T-Mobile believes will be the lowest upfront cost. If the plan proves popular the other carriers may need to make their own smartphone cost moves - this means that consumers will likely benefit across the board.
Simple Choice puts two simple questions to the subscriber:
- How many lines do you need?
- How much high-speed data will you require?
As with the questions, the answers to those questions will lead to several…simple choices:
- Start with one line at $50 per month for unlimited talk, text and Web, along with 500 MB of high-speed data.
- Add a second phone line for $30 per month, and each additional line beyond this is only $10 per month.
- Add 2 GB of high-speed data for $10 per month more per line.
- Unlimited 4G data is only $20 more per month per line - with no caps and no overages charges (that is what "unlimited” is supposed to mean).
In addition to the unsubsidized device purchase opportunities, it is worth noting that subscribers are also able to use their own unlocked devices - you are not even required to buy your device from T-Mobile. As part of the overall simplification, monthly statements will be easy to understand since all pricing stays constant from month to month, and device costs are clear and unmistakable. All of us have spent hours hunting down odd fees and costs - with T-Mobile's approach those days will be a thing of the past.
Great Prices on LTE Mobile Devices
Of course just because you can bring an unlocked phone of your own into the network doesn't mean T-Mobile wouldn't like to sell you one themselves. As part of the new 4G LTE network service roll-out, T-Mobile also announced a variety of 4G LTE-capable mobile devices deals:
- Apple's iPhone 5 will be available nationwide on Friday, April 12, at T-Mobile retail stores, online and through select dealers and national retail stores. Customers can pre-order the iPhone 5 beginning Friday, April 5.
- The Samsung Galaxy S 4 will be available on May 1, 2013. Pricing is still not established.
- BlackBerry's Z10 is T-Mobile’s first 4G LTE touchscreen smartphone featuring the redesigned, re-engineered BlackBerry 10 platform. Starting today, the Z10 is available for qualifying customers for $99.99 down with 24 equal monthly payments of $18. The BlackBerry Z10 is available through all T-Mobile channels.
- The HTC One (one of our personal favorites) will be available later this spring in all T-Mobile channels. Pricing is not yet established.
- The Samsung Galaxy Note II. Current users of the popular Samsung Galaxy Note II can now take advantage of T-Mobile’s 4G LTE network via an over-the-air software update.
- T-Mobile Sonic 2.0 Mobile HotSpot LTE is the first 4G LTE mobile hotspot from T-Mobile, providing access to the Internet for up to eight devices. It is available through all T-Mobile channels for $29.99 down with 24 equal monthly payments of $5 beginning today.
And that, as they say in Hollywood, is a wrap. Well, almost.
The reference to Hollywood is not accidental. T-Mobile also unveiled this morning a new tagline, “T-Mobile un-leash,” along with a new nationwide advertising campaign that begins with a television commercial Wednesday evening that plays off the Western film genre - the old Hollywood standby!
According to T-Mobile, the new commercial features a group of four cowboys in black hats riding into a dusty town to the terror of its residents. As three of the cowboys tell town folk they’re going to have to “do what we say,” the fourth, representing T-Mobile, switches to a magenta-colored hat and rides in another direction, saying he “just doesn’t want to do this anymore.” The 60-second ad spot closes with one cowboy musing “I’m gonna miss the guy” while our hero simply states “Oh, I’ll be around.”
Hmm. We're not really sure about "T-Mobile unleash" - in fact we aren't sure at all that this tagline is a good thing - and we already know all the T-Mobile details and the game plan. As for the commercial…we somehow doubt Quentin Tarantino was involved, which might have meant that T-Mobile pulled it off. We'll know tomorrow evening.
Edited by
Brooke Neuman 
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