Tmobile going Value Plan Only Discussion

Posted Dec 14, 2012 at 8:59 am in Threads > Opinions

So we all know that Tmo is going all in with their Value Plan, where basically the carrier drops the heavy subsidies that we are used to. This is, of course, great news because it saves money on the monthly fees. But some people don’t agree.

A Spanish telecom company, Telefonica, recently warned against such actions and gave evidence of the fallout that it had when it tried the same plan a few years back. You can read more about it here

So now that it’s been a while since the news broke, how do you still feel about the plan?

  • thymeless

    That’s how I use cell phones anyway. I’ve always gone prepaid. I use my Galaxy Nexus on TMo month to month, no contract. Has worked out well, and is much less expensive than a contract plan.

  • alexanderharri3

    It will be interesting. They are betting on people to either bring their phones or buy phones and ride them out longer than 2 years, where if you are on a subsidy carrier, you’re paying for a subsidy you didn’t get. They must feel like they need to differentiate themselves since their post-paid subscriber base isn’t that big. Their subsidies have been decreasing as of late – just look at the GSIII and GNoteII – higher subsidized price than the rest (really hard to do when speaking of Verizon).

  • jbcooley

    I think it’s great provided they have sales and discount old phones with the new system. They’ve done a few sales recently. In the past, they’ve had sales on contract phones, but the non-contract price stayed the same.

    Of course if Google keeps the prices of the Nexus phones low, it may not matter if T-Mobile has a sale or not.

  • jeshep

    I hope T-mobile is successful with the switch to Value only as it has the possibility to be trans-formative to the US cell industry. Separating the cost of the phone and the service opens up the opportunity for more competition and transparency on the real costs of owning and operating a cell phone. Allowing customers to bring their own phone could start to break the control the carriers have over manufacturers. This change could lead to lower phone costs and allow the consumer to chose the best phone and the best service for their needs.

    Of course these benefits will only work out if T-mobile is successful enough to force AT&T, Verizon, and Sprint to follow (not likely in the near future). My major concern is the initial feedback of this news on many tech sites where comments are focused around the up front costs of purchasing an un-subsidized phone. T-mobile needs to advertise effectively that phones can be paid for over a 20-month period, providing similar monthly costs as a subsidized plan.

  • FaSSt2001

    We just switched to the value plan last month. I actually think it’s a great deal for most people (more for the family plans anyway). The subsidies are great and very enticing, but you are paying the full price of the phone plus some with the higher plan rates. Consumers just never see that and just see a cheap or free phone. It took me about 2 months to explain it to my wife and finally convince her that she is still paying $600 for that phone you got for “free” with the higher plan rates. With the value plan, you just see that entire phone cost which can be a little scary. My wife ended up getting a Note 2 with the $20/month financing and I got a Nexus 4. After all was said and done, we currently pay $50/month less for four lines than the grandfathered classic plan we had. That’s huge savings and we still got the phones we wanted. It was hard seeing the retail price of the phone (the Note anyway) and knowing that you are paying that, but when my wife saw how much less our bill was, she was sold. I think consumers are used to the subsidized phones and it will be a hard transition, but in my mind, this is the way to go. It takes one company that has to start it and hope if goes well for others to follow suit. T-mobile is taking a big risk, but I think if they advertise right and know how to sell it, it will work out. Personally, I’ve convinced my brother and sister in law to switch to the Value plan and my parent’s are coming over from Verizon. Sometimes word of mouth is the strongest sales pitch a company can have. That, and phone prices will start dropping in the years to come to accommodate these types of plans. Look at the Nexus 4, it just blew up the phone pricing market and should be the pioneer of more affordable, un-subsidized phones.

  • jaxidian

    While I’m not a fan of fewer options, this is something that I’m fine with. I can’t imagine being with T-Mobile and paying the HUGE premiums to NOT have a Value Plan. You can get 5 lines w/ 2GB data each and 1k minutes for $25/line. That’s ridiculous!

  • jonstle

    I don’t think they should call them Value Plans, it makes them seem cheap. They should call them smart money management plans. In the long run it is a much better deal to not get a subsidized phone.

    Not to mention the freedom you have to change services when you want to.

    I do have to call myself out on this a bit as well though. I way this as a sprint customer with a subsidized phone. Boo me!!

    In my defense I am on the employee plan which has prices that beat most Value plans so when I run the numbers out a few years the costs are in my favor. If I ever have to leave the employee play I will cry a little on the inside and then look for a value plan.

  • kraigs

    I just switches as well,worked out to $40 a month savings for the wife And I. Both on nexus devices, me the nexus for and the galaxy nexus for her.

  • redraider133

    I am interested to see how customers take to this. I think if it takes off maybe others will follow and can lower the plan rates. One can wish anyway

  • KingCrow02

    Bold move by T-Mobile, lets see if it pays off.

  • pikahatonjon

    i think im the only one against it. i fear that they might drop their incredibly amazing $30 100 min unlim text/data and their $50 unlim text/data/talk plans when they introduce this.

    • pikahatonjon

      but ill withold judgement until things actually happen xD

  • wickedme

    I think it will actually be good for consumers. I’m on T mo now and when I switch, it will actually cheaper even paying a small payment for my phone. Paying the down payment will be like paying for phone on contract.