Tuesday, March 26, 2013

Mobile: T-Mobile's No-Contract Plans And Phone Payments Works Offer Better Transparency

I think the $99 down payment for flagship and top-selling devices like the iPhone, HTC One, Z10, and the forthcoming Galaxy S 4 is going to be a major hit for users looking to migrate to T-Mobile's new no contract plan.  For the reason that in-depth discussion about T-Mobile's new mobile plans isn't needed here, you're welcome to visit T-Mobile for more information.

What the new plans offer is greater transparency about subsidies and where your monthly payments to carriers go to.  In the past, you might pay $80 for plan and get a phone for free, $99, or even $199.  You sign a contract with the carrier and that’s it.  Locked in for two years.  While it might be kinda nice to know the breakdown of your $80, it’s was not something the carriers are obligated to tell us.

With T-Mobile’s plans, you know you’re pay, say $60 a month plus whatever amount you owe to cover the cost of the device you bought from T-Mobile for 20 months.  You see where that money is going towards and the diminishing balance of whatever device you bought from T-Mobile.

That’s kinda nice.  In the current plans offered by AT&T, Verizon, and Sprint, you pay $80 a month and even after your contract is over, you’re still paying $80 a month.  Just because you fulfilled your contract does not mean you automatically get a lower rate.  In fact, you still have to pay $80 a month to continue using the service under the same terms of your expired two year contract.  The extra money just goes into the carriers’ pocket.

After paying off your phone under T-Mobile’s plan, your rate remains the same but you’re no longer paying for your phone.  It’s how it should work.  It’s a fair deal.  And this is why I think T-Mobile’s new plans are very Apple-like in that they going to disrupt how carriers deal with its users from now on.

You pay the rate of your plan, the down payment of your device, monthly payment for the remaining balance of the device, and done.  I know many bloggers even now as looking for a “but…” but so far so good.

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