On Sunday, March 24, 2013, T-Mobile became the “Un-Carrier” with its offering of contractless phones with its “Simple Choice” plan. As it aims to roll out LTE to 200 million Americans, this year. With regards to the BlackBerry Z10, it is the first phone on the new TMO 4G-LTE network. The HTC “One” which was supposed to launch this week has been delayed, and so the Z10 steals the LTE spot light for some time.
The “Simple Choice” plan offering for the Z10 is $99 dollars down with $18 per month added to pay the remaining phone cost of $532-$99= $433. So in theory, one can pay the phone off in 24 months or two years. The difference from the nominal two year contracts at $199, offered by AT&T and Verizon is that there are no “penalties” for walking away, as there are no contracts. One would pay the balance due on the phone. Ofcourse, one needs to choose a series of services to add to the $18/month. Whether, in the end, the consumer actually saves money remains to be seen, yet it is a more flexible approach, allowing for people to get high end phones on an individual basis. It seems to me that the cost of the phone is now coming out of the consumer’s pocket, especially for loyal customers who have been with TMO for many years. It remains to be seen if the traditional “upgrade” paths to a new phone with a new contract, at a nominal fee, will still be available and what loyalty differentiation plans will be offered.
T-Mobile, held a live un-carrier event today at noon EST:
Here is today’s press release from T-Mobile:
T-Mobile Makes Bold “Un-carrier” Moves
Announces radically simple unlimited plan; axes contracts, unbundles cost of plan and device with lowest upfront costs, lights up 4G LTE network
NEW YORK — March 26, 2013 — T-Mobile has been talking the talk; now it’s walking the walk. The company, known for its “Un-carrier” attitude, today announced a series of moves to address consumer frustration with the unnecessary cost and complexity of wireless.
The moves include radically simplifying its lineup of consumer rate plans to one incredibly affordable plan for unlimited talk, text and Web; ensuring that customers never have to sign another annual service contract through T-Mobile retail outlets; and enabling customers to get the most popular smartphones whenever they want for the lowest upfront cost. T-Mobile also debuted its blazing fast 4G LTE network service in seven major metropolitan areas.
“These bold moves serve notice that T-Mobile is canceling its membership in the out-of-touch wireless club,” said John Legere, president and CEO of T-Mobile USA, Inc. “This is an industry filled with ridiculously confusing contracts, limits on how much data you can use or when you can upgrade, and monthly bills that make little sense. As America’s Un-carrier, we are changing all of that and bringing common sense to wireless.”
Central to today’s announcement is a radically simple approach to consumer rate plans — the Simple Choice Plan. A break from industry norms, the Simple Choice Plan eliminates restrictive annual contracts, taking pain and confusion out of the wireless experience.
What could be simpler than one consumer rate plan?
Simple Choice asks customers two basic questions: How many lines do you need, and how much high-speed data would you like? Customers start with one line at $50 per month for unlimited talk, text and Web with 500MB of high-speed data. Customers can add a second phone line for $30 per month, and each additional line is just $10 per month. They can also 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. No caps. No overages. Just simple value.
Also, because T-Mobile is the only major U.S. wireless company to stop requiring consumers to sign annual service contracts, customers have far more flexibility with how they buy and use wireless devices. Traditionally, getting a good deal on a new phone has meant agreeing to an expensive service for two years. Upgrades typically weren’t allowed (without significant upfront costs) until contracts expired, and it was often difficult to ascertain the true value of a device offer because it was tied to a long-term annual contract.
With T-Mobile’s un-restricted approach, customers can purchase great devices, pay for them in affordable, interest-free monthly installments, and upgrade anytime they like — not just when their carrier says it’s okay. Customers can even use their own unlocked device. Monthly statements are easy to understand since the price stays constant from month to month, and the device cost is clear and unmistakable.
Customers can find more information about T-Mobile’s Simple Choice Plan at nationwide T-Mobile retail stores, on http://www.T-Mobile.com, and through select dealers and national retail stores.
Un-Beatable Prices on LTE Devices
In tandem with the debut of its 4G LTE network service, T-Mobile also announced today that it will have several 4G LTE-capable devices available, including Samsung Galaxy S 4, BlackBerryZ10, HTC One, T-Mobile Sonic 2.0 Mobile HotSpot LTE and Samsung Galaxy Note II.
- Samsung Galaxy S® 4 is the next generation of Samsung’s popular Galaxy line ofsmartphones. Exact pricing and timing of availability have not been announced, but the Galaxy S 4 will be available in the second quarter of this year.
- BlackBerry® Z10 is T-Mobile’s first 4G LTE touchscreen smartphone featuring the redesigned, re-engineered BlackBerry® 10 platform, which continuously adapts to users’ needs. Starting today, the fastest and most advanced BlackBerry smartphone yet is available for qualifying customers for $99.99 down with 24 equal monthly payments of $18 for well-qualified buyers OAC. The BlackBerry Z10 is available through all T-Mobile channels. For more information about T-Mobile’s Z10, please visit Media Kit.
- HTC One® is the first T-Mobile 4G LTE smartphone featuring new HTC Sense™ innovations, including HTC BlinkFeed,™ HTC Zoe™ and HTC BoomSound™. Wrapped in a sleek full metal body, the HTC One will be available later this spring in all T-Mobile channels. For more information about HTC One, please visit Media Kit.
- 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. For more information about this update and for complete download instructions, customers can visit T-Mobile’s support page at http://support.t-mobile.com/docs/DOC-4962. For more information about the Samsung Galaxy Note II, please visit Media Kit.
- T-Mobile Sonic 2.0 Mobile HotSpot LTE is the first 4G LTE mobile hotspot from T-Mobile, providing simple and affordable on-the-go access to the Internet for up to eight devices. The T-Mobile Sonic 2.0 Mobile HotSpot LTE is available for $29.99 down with 24 equal monthly payments of $5 for well-qualified buyers OAC beginning today. It will be sold through all T-Mobile channels. For more information about the mobile hotspot, please visit Media Kit.
Un-Congested 4G Network
T-Mobile is moving at breakneck speed to expand the capabilities of its network.
Today, T-Mobile launched its state-of-the-art 4G LTE network in seven major metropolitan areas, including Baltimore; Houston; Kansas City; Las Vegas; Phoenix; San Jose, Calif.; and Washington, D.C. The advanced 4G LTE network is expected to reach 100 million Americans by midyear and 200 million by the end of 2013.
T-Mobile is deploying the latest LTE technology, paving the way to LTE Advanced. T-Mobile’s 4G LTE deployment will complement its existing nationwide 4G network — which third-party tests show rivals or beats existing LTE networks — creating what T-Mobile expects to be the fastest 4G combination in the United States. T-Mobile 4G LTE devices will automatically and seamlessly transition to T-Mobile’s nationwide 4G where LTE has not yet launched.
T-Mobile Launches Un-carrier with Wild West Commercial
To underscore its Un-carrier attitude, T-Mobile today unveiled a new tagline, “T-Mobile un-leash.” In tandem, the company will roll out a new nationwide advertising campaign, beginning with a television commercial tomorrow that plays off the Western film genre. 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.”
About T-Mobile USA:
Based in Bellevue, Wash., T-Mobile USA, Inc. is the U.S. wireless operation of Deutsche Telekom AG (OTCQX: DTEGY). By the end of the fourth quarter of 2012, approximately 132.3 million mobile customers were served by the mobile communication segments of the Deutsche Telekom group — 33.4 million by T-Mobile USA — all via a common technology platform based on GSM, HSPA+ and LTE. T-Mobile USA’s innovative wireless products and services help empower people to connect to those who matter most. For more information, please visit http://www.T-Mobile.com. T-Mobile is a federally registered trademark of Deutsche Telekom AG. For further information on Deutsche Telekom, please visit http://www.telekom.de/investor-relations.
This press release contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements may include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
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