Not only does T-Mobile have the Apple (NASDAQ:
) iPhone, they "have it their way." (Sorry for snatching your
slogan, Burger King (NYSE:
The "their way" part has to do with dumping phone subsidies
and long-term contracts, all part of T-Mobile's rebranding
efforts as it builds its LTE network.
"Today has been gangbusters for T-Mobile," Mike Sievert,
T-Mobile Chief Marketing Officer told
Friday. "We experienced lines out the door this morning at nearly
all of our almost 3,000 stores nationwide."
Some "line watchers" noted that later in the day lines were
The company hopes to attract owners of iPhones on other
networks who want to upgrade to a T-Mobile iPhone 5 with an
aggressive trade-in program and disruptive lower-priced usage
The big news - with T-Mobile and in favor of Apple - is
T-Mobile's Uncarrier initiative, a plan to wean America off
two-year cellular plans.
The initiative requires a $99 upfront payment, followed by $20
a month payments for two years - for just the phone. On top of
that, subscribers pay for usage. Would-be subscribers switching
from another network with an iPhone 4S to trade in can get an
iPhone 5 without paying the usual $99.99 initial payment and will
receive a $120 credit toward future bills. Overall, the plan
saves subscribers money.
T-Mobile is the last major U.S. carrier to add the iPhone; a
small, but important benefit to Apple, according to
. Currently T-Mobile has 33 million subscribers in the U.S.,
compared to Sprint (NYSE:
) with 56 million, AT&T (NYSE:
) with 107 million, and Verizon (NYSE:
) with 115 million.
T-Mobile's 'No Contract' Option Getting the
Attention of Verizon and AT&T
The next big move for T-Mobile is its merger with MetroPCS
). The deal has been in trouble, mainly due to some heel dragging
on the part of Metro shareholders.
, however, reported Monday that MetroPCS Communications had
amended the terms for its proposed merger with T-Mobile USA, and
asked shareholders to vote for the deal.
The change of heart was precipitated by some deal sweetening
on the part of Deutsche Telekom, which owns T-Mobile. The
amendment "significantly improves" share value for MetroPCS
shareholders, according to the Reuters report.
reported that users who switch to the iPhone 5 on T-Mobile will
see several advantages including unlimited 4G FaceTime (with an
unlimited plan), a fast HSPA+ 42 backup network if they get
bumped off 4G, and support for HD Voice. The phone will not offer
Wi-Fi calling, which is a key feature on other T-Mobile
Disclosure: At the time of this writing, Jim Probasco had no
position in the other mentioned equities.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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