This morning's big news comes from last night. T-Mobile officially announced via a streaming video (posted from YouTube above), that their parent company, Deutsche Telekom, will be making massive investments to transform T-Mobile into a serious competitor in 2013. Here's a breakdown of what has been revealed:
- First, Deutsche Telekom will be coughing up $4.7 billion in cash for T-Mobile next year. Additionally, they will receive another $6 Billion in total cash over the following two years (2014 and 2015). This massive influx of cash will be used for several purposes, detailed below.
- T-Mobile will finally be getting the iPhone for their network. Although over a million users already use an unlocked version of the iPhone on T-Mo's network, now the carrier will be officially supporting and selling the Apple product. This adds some clout and credibility to T-Mo that it was sorely lacking.
- T-Mobile plans to use much of this investment capital to upgrade much of their existing 2G network to 3G & 4G.
- T-Mobile's merger with MetroPCS will likely clear in 2013, which will facilitate T-Mobile's plan to rollout their own LTE network.
- Because of this new network refarming, consumers will be able to use a wider variety of Android devices on their network too. Some of these phones were originally exclusive to other carriers like the HTC One X (or One X+) for AT&T or even Verizonís HTC Droid DNA. Because of the global roaming capabilities of these devices, sometime in 2013 consumers will be able to take these devices over to T-Mo.
- This last new jewel of info is the most intriguing. T-Mobile plans to kill their subsidized phone Classic Plans. However, this doesn't mean you will have to purchase all of your T-Mo phones outright. Instead of selling you a cheaper and subsidized device, but then locking you into an expensive monthly contract, you will get a much cheaper monthly contract, and make installment payments over the beginning part of your 2-year agreement. This will be about $15-20 per month on top of your cheaper plan. In the long run, this will end up much cheaper for the consumer than the current subsidized pricing model.
Sound off what you think of T-Mobile's big plans for 2013. Would you consider switching to them if they became a serious contender?