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Review of T-Mobile's New Contract Deal

By Edited Nov 13, 2013 2 0

T-Mobile has struggled to make it to the top of the pack of cell phone carriers for a while now. What they are doing now is being unheard of in the industry. They are offering their customers a payment plan for iPhones and Samsung Galaxy ones as well as other devices they market. It sounds good on the surface, but is the new layout really a good deal? After careful review decide for yourself whether this is a better bargain than what you now have for your communication needs or not.

They have lost close to half a million consumers from their long-term committment ranks according to their last third quarter calculations. They are unable to rise from a standing of fourth largest competitor in their industry today with the current sales campaigns they have in place. This realization meant changes were necessary to assure future success.

As part of their ideas to stimulate growth financially to move them to the first place spot, they are taking this enormous gamble on a new way to push products and services to shoppers. The two-year contract they have for patrons is gone in favor of a pricing structure constructed and described as unique from all others in their market. This is a review of the creative and unique idea to attract more business and the benefits and pitfalls of it.

What is the new idea?                  

The new and unique changes are twofold. One part is service and the other is the product. They are getting rid of the multiple year committment to a specific service in favor of an enormous push of their no contract deals. On top of this, clients have a choice of buying their gadgets over time instead of upfront. One giant variation identified as a new arrangement inside of an arrangement is giving people the iPhone as a merchandise choice.

The iPhone option is something all three competitors ranked higher have already put in place and seen a significant jump in their profits. Granted they saw more income from it and none of the others offer not paying for the product out-and-out. Some give discounts, but none deliver a payment plan  for it. This is genuinely different from what is going on for many customers and should attract shoppers. They are hoping they will appeal to new business by the boatload and increase their ranking as well as their monies.

While it sounds like a wonderful idea, there are some advantages and disadvantages realized when you get service and devices from this business. Along with taking a look at the new updates being made an overall company review is here as well.

Advantages

Bring your own phone or other communication item to this network. If you already have your phone, but want to leave your carrier, come on over. This is wonderful for someone considering a change to paying their bill without a long-term time investment when you are able to pay monthly. This is really important if they still like their gadget and own it. 

A monthly pay choice is liberating for anyone who has ever been strapped with an extended deal  for a two-year time investment and looks very appealing as part of the new promotion. Anytime you want to quit with a carrier or service plan, you can. Simply do not pay your next bill.

They do offer a mobile hotspot for certain customers. All of their data pacts are boundary free on their network. No restrictions for talk, text or data. Being stress free is wonderful. No concerns for how much  technology you are using at any time is liberating. Families with teens are especially grateful for unlimited usage. No more fretting about overcharges.

Family arrangements for services are not that terrible compared to other competitors. You will pay $50 for the 1st line, $30 for the second and $10 for every other one after that. They all start with unlimited talk, text and web. If you want less than unlimited, they do have several other options. However, you see the best benefits  taking the greatest services delivered.

Free overnight shipping for all of their merchandise is always attractive. Shipping costs are sometimes a large consideration for online shopping. These will add up with some instances and having no fee is better than getting the same items in a brick and mortar store. At the very least you are saving wear and tear on a vehicle or fuel costs by using the website to buy what you need.

The monthly costs will vary depending on which items you choose or prefer, but the pricing structures are not outrageous whether you pay in one payment or over time.

Disadvantages

Moving away from an extended contract sounds wonderful. Though, early termination fees sometimes include paying the balance owed on your device along with a penalty for cancelling a contract before the agreed upon date. Before you cancel it and make the move, look into this issue.

They are the fourth place carrier for a reason. They have a limited network for connecting. A lot of places around the country are weak for signals and dropping them is a norm and not the exception. When this happens in the area you use your phone the most, this is an enormous problem.

Anyone who has been with a carrier for a while could get away with a couple of 30 day payments before signing another extended agreement. Though, many will charge you a service fee on top of a regular bill until you sign another one.

They haven’t had the greatest or latest technology on their sales offerings which has cost them. Many people looking for this type of service enjoy having the best and latest gadgets when it comes to handling personal and especially business calls.

Although their new deal propaganda mentions no more long-term obligations, their website outlines family coverage ones. I was not sure why, if they are no longer in place they are still outlined or discussed. According to interviews around the web, their site has all of their new marketing material available immediately. This was confusing.

The 4G coverage advertised has many issues and turned many people away. They publicize this bonus for all merchandise. Yet, callers are not given it for the entire month of service without paying extra. Only so many GB are available every 30 days based on the calling option you buy.

Depending on the main functions you use your gadget for; this could be a real issue.  After meeting your allowance for the 30 day period, you are auto bumped down to 3G or 2G according to what you have purchased. Other companies advertising giving it for the entire month of service.

A monthly bill is not from the 1st day till the last day of that calendar month. You are buying 30 days of coverage.  This means if the month is 31 days long, you penalized one day of coverage for your bill. Other carriers give the extra day because you are buying a month and not a daily plan.

Customer service for this company has always had an extremely low ranking in the industry. None of their earlier “breakout” ideas put into place have proven good enough to move them up the industry food chain with this particular measurement. No matter what they have tried their service for customer issues, concerns and complaints continues to rank extremely low.

Only unlocked apparatuses can transfer from another carrier. They do not offer the preference to unlock it for you. This is a disadvantage if you have an expensive one paid for that you like, but cannot get it transferred to them. This could make or break the deal.

If you choose to leave to take your business elsewhere before you pay your mechanism off, you owe the balance immediately. If you are late paying your monthly committment for the gadget, you could find a big bill for even a couple of days of tardiness for your no long-term committment service.

You have to pay more for more gigabytes of data, even though they advertise "unlimited". Every phone line will come with 500 GB, but adding more will cost you. Adding only an extra 2GB is $10 for every line as a family monthly payment design. You can go unlimited for another $20 for each line. This particular concern will not weigh heavily with a large amount of people.

They announced they changed the pricing structure on designs outside of their long-term layouts on their website last weekend. I took a quick look at it expecting a makeover or large change from what they had before. They havent made hardly any from what customers would have seen last week on the same site.

Their website has never been that impressive. They have a theme which is difficult to navigate, read and find answers to common questions customers have on issues or concerns they have. Even this change in services was not outlined with any real details there. There is no Q and A and most answers anyone needs to find is found on other areas around the web or news feeds.

Reporters who specialize in relaying news about the tech industry admit the site is confusing along with any details about the changes models they are offering. According to the company’s president “That is on purpose.” “The only thing you need to know is there are no data caps or hidden fees as well as bill shocks. Just one rate plan which costs $50, $60 or $70, respectively, for varying degrees of service.” This is a little “off putting” for many would be customers. This statement is not reassuring coming from a multibillion dollar business president.

A wonderful example of some of the confusing language and information on the company's web pages relates to their single version of their no contract cell phone design. A single line is $50 unlimited talk text and web without a long-term committment. With a long-term plan this same single line is $50. (?)What is the real benefit of signing a contract? Apparently there isn’t one based on the info found on here.

The only real advantage seen

Permitting customers to pay for things like the iPhone 5, Galaxy S, Windows 8X and even the Nokia Lumia 810 over time seems like the biggest and possibly the only real advantage. With payments as low as $16 each month they are expecting a litany of people to jump right into the fray. There are some things for sale starting as low as 5$ per month. Tablets are also included in this sales offering. These include T mobile Springboard and the Samsung Galaxy.

In order to buy these over time, you will need qualifying credit, but the APR is 0%. When compared with other carriers the final outcome is a cheaper price than the upfront payment the competitors are charging. How does that work? Well that great price a nother company is offering you is not as great as you might think.

 Paying over time without the long-term plan committment is actually cheaper. With the long-term payment you receive from the competition you are buying the item at a discount or get it free of charge, according to them. The extra cost difference is actually seen in a monthly bill. Still, once you pay for the item, the billing charges are not reduced. It remains the same for the entire period you signed up for. You could pay for it more than once by the time you reach the final bill.

T-Mobile's choice of options for a bill like billing without a long-term arrangement and buying your gadget separately actually sees a reduction each month after paying off your item. You will only see the extra charge until you have paid for the item you chose. Not only is your bill reduced after making your last payment, but you can even choose to take your item with you to another competitor when you want without penalty.

In conclusion

This is a review of the new ideas created for bringing customers and revenue back to the company. There are a lot of pros, but far more cons with a high level outlook. Will it work? It is difficult to say at this point, but giving it a chance certainly will not hurt.

They have seen lots of customers jumping ship to Verizon and AT and T for a variety of reasons over the last couple of years which has cost them a lot in financial profits. Most of the loss of revenue is due to diminishing long-term contract agreements. They have managed to balance out this loss in revenue to some extent with the no contract options. The issue is these alone will not get them to where they want their business.

One of the things which has really hit the bottom line hard is not offering the latest technology, especially the iPhone. Giving customers this option as well as how you pay for it is wonderful. Identifying and focusing on necessary changes like these to make the company better is a great move in the right direction.

The new offerings and new deal could work out as planned and be a great advantage. Moving as a new customer to this carrier could be a good choice depending on what you are looking for. However, be cautious before investing in a new and untried communication option.

There will be kinks to work out and with the customer service eval received being extremely negative, you run the risk of not getting the help you need when you need it and taking care of any hurdles you meet along the way with anything new. Do not get stuck with an item or company you are unhappy with for your communication needs.

I cannot say with absolute certainty to drop everything and move to this business with what they have outlined in their new direction. Consider your budget, your needs and your wants before making the change and deciding if it is worth it.

 

Tmobile is updating their device inventory in order to compete with industry favorites

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Credit: kozzi.com

TMobile's Iphone 5 and their new LTE network

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