T-Mobile Commits to Ending Smartphone Subsidies

Company Insight

T-Mobile has announced it will stop handset subsidies in 2013 when it also starts selling iPhones. Since T-Mobile is offering a financing option for the cost of a handset, the main difference for the consumer that chooses this option is transparency. For the first time, consumers will clearly see how much of their monthly bill goes to service and how much goes towards the handset. With the T-Mobile plans, the iPhone will have to face the naked truth of price competition it has effectively hidden from for the past 5 years.

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