/// T-Mobile: AT&T’s New Plans Make You Pay for the Same Phone Twice

July 16, 2013  |  All Things Digital

T-Mobile lashed out Tuesday at new rate plans from rival AT&T , criticizing them as a poor imitation of T-Mobile’s earlier efforts. Mike Sievert, T-Mobile’s chief marketing officer, said that when his company did away with phone subsidies it also lowered monthly rates. AT&T’s new Next plans, by contrast, charge the same monthly rates while also eliminating the discount typically provided by carriers when purchasing a new phone “You get to pay for the same phone twice,” Sievert said in a telephone interview. Both AT&T and T-Mobile’s plans allow customers to upgrade more frequently by trading in their old device. The programs take advantage of the fact that modern smartphones tend to have significant resale value in the months after they are first sold, as well as the fact that the industry spends a fortune to both sign and retain customers. T-Mobile’s monthly rates are lower, though its Jump program does require a $10 per month fee, which also includes insurance against theft, loss and damage. “Our friends at AT&T have really gotten it wrong,” Sievert siad. “Far from being disruptive innovation, it’s just another way for (AT&T) to take more money from the customer than ever.” The programs from AT&T and T-Mobile both are designed to remove a key cost for the carriers–the large amount of money they spend to discount new phone purchases for customers. Verizon is rumored to be readying a similar program. T-Mobile is pitching its program as part of its ongoing “un-carrier” effort to systematically go after key customer gripes about the cell phone industry. “For us its all part of a larger strategy,” Sievert said. “There is so much left to be done in this industry.” T-Mobile CEO John Legere indicated at an event last week that the company has a phase three to its campaign, which began in March with the effort to end device subsidies and continued last week with the early upgrade program. Another event is expected this fall.

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T-Mobile: AT&T’s New Plans Make You Pay for the Same Phone Twice

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