T-Mobile Eliminating 2-Year Cellphone Contract Requirement?

Tuesday, 05 Mar 2013 10:38 AM

By Alexandra Ward

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Techies and bloggers predict that T-Mobile will soon ditch its two-year contract requirement in favor of a no-contract model starting later this month, and other cell phone carriers are also said to be mulling over the idea.

No official announcement has come yet from T-Mobile, but TmoNews, an unofficial T-Mobile blog, claims the company will drop its contracts on March 24 and will launch a new "uncarrier" approach. That means early termination fees will soon be a thing of the past.

Customers generally have a love-hate relationship with carrier contracts. While the agreements allow them to get new phones at low prices (a new iPhone 5 with a contract is just $200 compared to the $649 regular retail price), the commitment also requires a $250 fee if a customer wants to get out of their contract early.

Urgent: High Gas Prices: Is it Obama's Fault? Vote Now

T-Mobile's reported new strategy will spread the high cost of the phone out over a multi-month payment period, according to TmoNews.

Insiders say other wireless carriers will probably follow in T-Mobile's no-contract footsteps.

"I think that the rest of the industry will likely be looking at this very closely, because I don’t think anyone really likes the model that's set up now," CNET.com's Roger Cheng told CBS Denver. "Carriers are tired of people complaining about contracts."

Along with no more contracts, T-Mobile is also rumored to be working on a new marketing strategy that will debut when the company finishes its merger with MetroPCS this year. The cell network will reportedly retire its "Stick Together" tagline, as well as Cindy Foulkes, the Ducati-driving, motorcycle-riding spokesmodel who appears in the commercials.

Obamacare: Massive New Rules Revealed for 2013

CEO John Legere also confirmed in December that T-Mobile will soon sell the iPhone, a necessary move if the company wants to stay relevant.

Related stories:

Dead Daughter's Voice Mails Disappear After T-Mobile Promotion

Sprint Said to Weigh MetroPCS Offer to Top T-Mobile's Bid

T-Mobile USA in $2.4 Billion Tower Deal with Crown Castle

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Send me more news as it happens.
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Cambodia HIV Outbreak: 100-Plus People Diagnosed; Investigation Sought

Friday, 19 Dec 2014 18:50 PM

More than 100 HIV infections in a single Cambodian village have spurred the country's prime minister to ask for an inves . . .

Slender Man Case: Two Girls Competent to Stand Trial in Stabbing

Friday, 19 Dec 2014 18:26 PM

Two girls who allegedly stabbed a 12-year-old friend over the online game Slender Man are competent to stand trial for a . . .

Kate Upton Sexiest Woman Alive; Model Apologizes to Teen Brother

Friday, 19 Dec 2014 17:52 PM

Model Kate Upton was selected as People magazine's first Sexiest Woman Alive, a month after Chris Hemsworth received the . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved