The cold war between the three big guys Verizon,T-Mobile and AT&T are always center of the attention. Every now and then they are offering cool offers to make them on the top of the list. Yesterday, It came to our knowledge that company might ditch two-year contract plans and start offering iPhone on regular plan in which customer will be charged full price of the phone payable over two years in monthly installments. T-Mobile said it has been loosing subscribers from its contract-based plans to the other two big guys Verizon and AT&T. T-Mobile has done better with no contract phones in the last year but those plans aren't profitable.
The new plan is somewhat similar like prepaid plans which has low monthly fees and the buyer has to pay full price of the phone and customers could save money in the long run.
Someone who wants a Samsung Galaxy S III would pay $70 upfront and then $90 per month for unlimited calling, texting, and data. That monthly fee includes $20 to pay off the cost of the phone over two years.
When the phone is paid off, the $20 fee in that example disappears. On traditional contract-based plans, the buyer is deemed to have ‘‘paid off’’ the phone after a certain period of time and become eligible for a new, subsidized phone, but the monthly payments don’t decline.
The initial phone-buying experience won’t be much different from what it’s like for contract plans,but customers could save money in the long run.
The customers will be not need to sign a contract and will be offered voice, data and texting plans that sharply undercut competitors. If customers even leave the company they will still be liable to pay whatever they owe on the phone.
Federal regulators have also approved a merger between T-Mobile and MetroPCS which means that the two companies will work together now and will compete to the leading firms. T-Mobile is the fourth largest carrier in the USA among Verizon,At&T and Sprint. To be on the top it has to be super like Verizon which is the biggest network in the USA. Well MetroPCS and T-Mobile can prove this and leave behind Verizon in the coming future.
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