TMUS Offerings Without Down Payment - Analyst Blog


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T-Mobile US, Inc. ( TMUS ) makes another attractive offer by introducing zero down payment plans for 4GLTE-based phones and tablets. This zero down payment scheme is available at all T-Mobile retail and online stores from Jul 27, 2013.

The cost of the device will be divided into 24 monthly installments without any interest or service contract. Moreover, the plan comes with a Simple Choice Plan, which features unlimited talk, text and 500 MB of data usage for $50 per month.

A few days back, T-Mobile US launched Jump plan, which allows subscribers to upgrade their handset twice a year rather than in two years, as in the case of other carriers.

The company is charging $10 a month for Jump, which also offers insurance coverage. The customer can avail the first upgrade service after six months, after which there will be no waiting period.

A few months back, T-Mobile US launched another contract-less service called Uncarrier. This plan allows subscribers to buy smartphones like Apple Inc. 's ( AAPL ) iPhone at $100 and pay the balance in installments of $20 per month for the next two years.

Unsuccessful merger attempt with AT&T, Inc. ( T ) coupled with the unavailability of iPhones in its smartphone portfolio had led to a continuous loss of subscribers.

T-Mobile US is implementing these strategies to improve its business. The company has already gained 3,000 subscribers in the first quarter of 2013 as compared with a loss of 261,000 subscribers in the prior-year quarter.

Therefore, we believe that such strategies undertaken by T-Mobile US will not only help it to safeguard its position against top carriers like AT&T and Verizon Communication Inc. ( VZ ) but will also allow it to take unprecedented lead over its rivals.

T-Mobile US currently carries a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: AAPL , T , TMUS , VZ

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