T-Mobile USA kills traditional cell contracts in subscriber boost bid

ZDNet ^ | March 26, 2013 -- 16:23 GMT (09:23 PDT) | By Zack Whittaker

[Ernest_at_the_Beach]

Summary: By killing traditional cell phone contracts, the fourth largest US cellular network hopes to undercut its rivals who have taken on most of its defecting customers.

NEW YORK — T-Mobile has suffered a rough ride by losing close to a half-million postpaid contract customers during its recent third quarter results. But today, the fourth largest US cellular network formally announced  that it is killing the traditional two-year cell contract in favor of a different pricing structure.

"We're changing the rules," said T-Mobile president John Legere at the press event in New York. 

[Ernest_at_the_Beach]

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Here's what you need to know:

Dubbed "Simple Choice," T-Mobile's plan will offer unlimited "everything." There are no data caps, no bill shock, and no hidden fees. Just one rate plan, which will cost $50, $60 or $70, respectively, for varying degrees of service.

You can either pay for your new smartphone at the full price up-front when you start your new plan, or you can pay off the device over time with additional monthly costs. What's different is that you can leave T-Mobile at any time.

[EEGator]

T-Mobile...

[mnehring]

They didn’t really kill it, they just front loaded the cost so you are paying as much for the phone as if you canceled the contract and paid the penalty.

[Theoria]

This will naturally push down the prices of phones. Subsidizing the phone over a 2yr agreement vs purchase any phone and use a no contract term.

I use a service that has been around for a while, straight talk, a Walmart service, that uses t-mobile, $45 a month, unlimited everything.

[Trod Upon]

What’s up with the 11 year old in a bikini?

[EEGator]

I’m sure you could get her, and if you could that you’d turn her down.

[dangerdoc]

LOL

[autumnraine]

I will never get into a cell contract again. Straight Talk gives you unlimited talk, text and data (for a smart phone even) for $45.00 a month. No contract.

[Ernest_at_the_Beach]

Got to check into that ....

[autumnraine]

Oh, and they use “can you hear me now” Verizon towers, so I got coverage when was living on a mountain last year.

[PapaBear3625]

They didn’t really kill it, they just front loaded the cost so you are paying as much for the phone as if you canceled the contract and paid the penalty.

With the result that people won't be tempted to get a new "free" phone every two years, and just hang onto their old phones. It may also create a market for "old" phones from people on a contract plan who upgrade their phones.

[Sergio]

Thanks, gotta go to Walmart.

[Trod Upon]

Don’t know what she looks like otherwise, but to me she looks like an undeveloped kid in that photo. Maybe she’s actually a knockout, but going on that image I can comfortably declare I’ve had better (according to my tastes). To each his own.

[EEGator]

She's the T-Mobile chick from the commercials. She's a model, so she doesn't have many curves. They like them skinny so you look at the clothing instead of...you know.

[EEGator]

She’s just average. I prefer more curves, but I put her because she is the T-Mobile chick.

[SunkenCiv]

Looks like they’re finally getting with it.

[Trod Upon]

Yeah it eventually sunk in after a little Googling. It’s been so long since I saw one of their ads I must have still had Catherine Zeta-Jones on the brain. Had no idea that was the new spokesbabe. She’s really odd looking to me...it’s as though someone stuck a woman’s head on a kid’s body.

[cynwoody]

What’s up with the 11 year old in a bikini?

She's 24. Carly Foulkes.

[EEGator]

There is absolutely nothing wrong with having Catherine Zeta Jones on the brain. Carly definitely isn’t a Marilyn Monroe type figure. A lot of clothing models are flat and skinny. It’s supposed to show off the clothes instead of T&A.