Editor in Chief
- Dec 30, 2010
- Reaction score
- Austin, TX
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 Verizon’s 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.