So T-Mobile came out with their new plans yesterday. Apparently the rumors of a a $60 everything plan were false. The cheapest everything plan is $80. But there is a catch. T-Mobile’s new “Even More Plussm” plan offers unlimited everything for $80, however it is without contract.
No contract? Sounds good, right? I agree, it is good. However no contract also means no phone subsidies. So that myTouch which “retails” for $500? Yeah, they want you to pay the full five for it. Now that might seem like a lot (because it is!), but there are three benefits from this pricing scheme:
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Pricing – No really. Do the math. The other carriers offer an unlimited everything for $100/mth with a 2 year contract. That’s $2400 for the service plus $150 for a subsidized myTouch. Total: $2550. On the new plan: ($80 x 24 month) + ($500 myTouch) = $2420. That’s a savings of $130. Now I know that’s not much, but the key here isn’t that you’re neccessarily saving a bunch of money, the key is that you are saving money while achieving the other benefits!
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Capitalism – OK so this won’t happen overnight, but let’s assume that T-Mobile is successful and their success forces the other 3 major carriers to do the same. Let’s assume that we will finally see a telecom industry that is truly divorced from the phone manufacturing industry. What happens then?
Well first of all, without inflated subsidies phone manufacturers will be forced to sell phones for what people will actually be willing to pay for them. Right now the true costs are hidden from us. Will the myTouch be $500 when it comes out? Yeah, it sure will. But will it stay $500 for long? Nope, it will be priced like all other mass-market, hi-tech consumer products. High initial prices which then quickly decline.
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Freedom – With price plans ranging from $30/month to $80/month you now have quite a few options. More importantly, with no contract to lock you in, you can move to a different plan based on your needs! Do more calling during the holidays? Bump up to the unlimited minutes plan, then in January drop back down. Simple, huh?
To make it even better, T-Mobile will alert if you if you’re getting close to using up your minutes (assuming you’re not on an unlimited minute plan) and you can then either slow your usage or simply bump up to the next plan. Control: it’s yours again.
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Freedom + Capitalism = Freedom2 – Now imagine if the other carriers did follow suit. What would that mean for phone manufacturers? Well, without carriers demanding “exclusive” phones they wouldn’t have to make four version of each phone, each with just enough of a change to warrant a new name. Phone manufacturers would have a financial incentive to limit there model count. Economies of scale would encourage them to make a single phone that worked for any carrier. Imagine that! Imagine taking your phone from Sprint and going to AT&T without being required to sacrifice two goats to the gods of telecom.
I know, I know, right now that concept is so foreign to you that you’re reading these words with the same level of skepticism as if I had just said I walked on water on the way home today. However, my brothers and sisters, if you just allow yourself to believe! To believe that we could be free! That our sons and daughters could be free! If we allow ourselves, for just a moment, to believe… then maybe, just maybe, one day we will indeed be free!
So the new pricing scheme is interesting, and an overall positive change. However it didn’t pull the rug out of the current pricing models the way $60/month would have done. That’s a disappointment as much for myself as for T-Mobile. I’m a big enough fan of T-Mobile that I had hoped to see them undercut the shit out of everyone else and really push themselves up in the industry.
So back to my story…
| Current | New | |
|---|---|---|
| Minutes | $50.00 | $50.00 |
| Data | $29.75 | $30.00 |
| Total monthly | $79.75 | $80.00 |
| 24 months | $1,914.00 | $1,920.00 |
| Cliq | $200.00 | $399.00 |
| Total | $2,114.00 | $2,319.00 |
I had called T-Mobile (several times) yesterday to get pricing information for the plans, and the phones, and various options. The Cliq, it turns out, retails for $400. This is $100 cheaper than the $500 myTouch, I thought that was interesting.
However, as it turns out, and for all of my cheerleading above, in my particular case there is not a benefit for jumping on these new plans. While $80/month is $20/month cheaper than their old plan, I was already on a “special” customer loyalty plan that got me unlimited minutes for cheap. Once everything was calulated out, the new pricing plan actually costs me more than if I just sign a new 2-year contract and get the phone at a discount.
Now the interesting thing is that it’s almost exactly $200 more expensive. It just so happens that $200 is the exact amount that T-Mobile charges if you break your contract. So really, at worst case I end up right where I would’ve if I had just purchased the Cliq and full retail.
So that’s that! The Cliq is in the mail and soon I’ll have a new toy and blog topic.
Yay!



