A couple of days ago, I wrote about T-Mobile’s move to introduce contract-free plans dubbed UnCarrier. In this move, the company seeks to encourage prepaid service and sell phones without subsiding prices. This was a very radical move and a huge gamble for the company but it seems that this plan is going to pay off, especially in these times when manufacturers are introducing phones with revolutionary features to the market in quick succession. Apparently, Verizon may now be considering switching to similar plans as T-Mobile.
Lowell McAdam, Verizon CEO, praised T-Mobiles move to end subsidies and said that Verizon is interested in what T-Mobile was doing and will watch them closely. He also mentioned that shifting their current contract-based plans to the new design would be easy when the customers demand it. Currently, Verizon also offers almost similar plans where a customer can buy a device without contract at full hardware prices, but the company does not encourage or promote it. T-Mo is the first carrier in the US to promote such plans of selling a device at full price to the end user and ahead to educate the end users what they stand to benefit.
Has T-Mobile sparked off a new carrier war? In the past, most battles in the carrier market had been fought on quality and range of devices sold exclusively by a network to the extent that almost all networks provided some budget and entry level smartphones to users free of charge or at ridiculous prices like $.01 and $.99. We cannot tell now though if the new plans by T-Mo will shake the market or if users will go for contract plans which typically are for two years. For now though, it wouldn’t hurt Verizon to sit back and watch how T-Mo performs then implement informed changes.
What do you think of T-Mobile’s contract free plans? Would you rather buy a phone cheaper and sign a contract or would you choose to pay a full price and make no commitments? Let us know in the comments section below.