T-Mobile to offer iPhone, cut subsidies in three to four months
In addition to T-Mobile’s earlier CES announcements – wherein the company announced the launch of its new HD voice and LTE networks, as well as a new unlimited 4G data off-contract plan – the Deutsche Telekom-owned US carrier also said that in three to four months, it will start selling the iPhone to customers and removing its handset subsidies.
T-Mobile CEO John Legere said that the removal of subsidies and the offering of the iPhone could increase the GSM carrier’s US market share by up to five percent, bringing the company closer in terms of market share to its biggest nationwide rivals AT&T, Sprint, and Verizon. Offering phones without subsidies gives customers the opportunity to have no-contract plans, meaning that their payments would be lower and that they could leave the carrier at any time – which Legere thinks will give consumers a reason to switch.
Of course, if those things weren’t good enough, T-Mobile is also in the stages of acquiring US carrier MetroPCS to expand its admittedly shoddy coverage. Better coverage, cheaper plans, and the availability of the popular iPhone seem to be what T-Mobile is betting on for the future.
Whether or not the carrier will succeed will be found out after all the changes have been made. Will you be making the switch to T-Mobile when its plans are completed?[Reuters]
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