Apple’s iPhone, which has changed the dynamic of the smartphone industry, is playing a key role in T-Mobile’s new “un-carrier” business initiative T-Mobile – which has not yet carried the iPhone --will in April begin selling the iPhone 5 without tying users to a service contract. Analysts say the iPhone will be less expensive for users under T-Mobile’s plan.
T-Mobile on Tuesday said the Apple iPhone 5 would be available starting April 12 for $100 up front, with customers paying an additional $20 a month for two years. Other new smartphones, such as the Samsung Galaxy S 4 and the BlackBerry Z10, will be available with similar payment plans.
For several years, T-Mobile, the No. 4 American mobile carrier by market share, has been losing subscribers to Verizon Wireless, AT&T and Sprint. In earnings calls, the company has said its main problems were consumers’ negative perception of its network and its inability to offer customers the iPhone. The company is hoping to mount a comeback now that it has landed a deal with Apple and launched its fourth-generation LTE network in seven cities,.
Central to T-Mobile’s strategy is its “Simple Choice Plan.” Costs are based on two criteria: how many lines users need, and how much data they want to buy. Customers start with one line at $50 per month for unlimited talk, text and Web with 500 MB of high-speed data. Customers can add a second phone line for $30 per month, and each additional line is just $10 per month.
Although T-Mobile’s new phone plans require no long-term contract, customers would have to pay off the balance owed in order to end service prematurely
