On T-Mobile killing the subsidy: It’s about time
T-Mobile USA wants to shake up the status quo in the wireless industry to spur its turnaround. At the same time, it could change the way consumers think about how they pay for their services.
T-Mobile CEO John Legere yesterday said the carrier would eliminate subsidies next year, moving completely to its “Value” plans. In doing so, it will be the first nationwide carrier to shed the age-old (and typically more lucrative) practice of signing customers to long-term contracts in exchange for subsidies.
The carrier, a unit of Deutsche Telekom, has already been seeing a shift towards the…