Verizon Wireless confirmed it will launch a "Device Payment Plan" starting April 21 to help customers finance the purchase of devices that cost more than $350.
Sprint Nextel's Virgin Mobile USA prepaid brand is offering T-Mobile USA customers $100 to switch over to Virgin's no-contract service. The action is a response to T-Mobile's new no-contract business strategy.
T-Mobile USA wants you to know that it's the "Uncarrier." It's moving to a no-contract model (mostly), and doing away with the traditional Tier 1 U.S. carrier model of smartphone subsidies in exchange for a two-year contract. Unfortunately, I don't think much will change in the U.S. industry as a result.
Verizon Wireless, AT&T Mobility and Sprint Nextel seemed unfazed by T-Mobile USA's decision to do away with wireless contracts and CEO John Legere's vow to shake up the status quo.
T-Mobile USA formally unveiled its new no-contract pricing without device subsidies and also said after years of waiting it will launch the LTE-capable Apple iPhone 5 on April 12. The carrier also launched its LTE network in its first seven markets.
T-Mobile USA officially unveiled a key part of its new "Uncarrier" strategy by releasing new pricing for its Value plans (which do not include device subsidies).
T-Mobile USA will continue to offer its traditional Classic plans with device subsidies at third-party retailers, according to a TMoNews post. The company had previously announced that it intends to switch exclusively to offering its Value plans without device subsidies later this month.
T-Mobile USA plans to launch a new handset trade-in program in the coming weeks aimed at getting customers to switch over to its new Value plans, which will come without device subsidies, according to a TMoNews article.
Verizon Wireless expects subsidies for smartphones and other devices to fall over the next two to three years as competition intensifies among operating systems and devices move to being LTE-only, according to a senior Verizon executive.
Sprint Nextel is open to the idea of dropping subsidies on its phones as T-Mobile USA plans to do, but is taking a cautious approach as it looks at the impact on the market and the economics of such a move, according to senior executives.