T-Mobile's Aggressive Smartphone Strategy Includes iPhone Market

Wednesday, 27 Mar 2013 09:01 AM

By Michael Mullins

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T-Mobile launched an aggressive new strategy Tuesday to appeal to new customers and potentially win back some former ones, offering bargain plans with no contracts, a new 4G LTE network, and full compatibility with Apple's iPhone 5 which it will start selling as a souped-up version.

Hoping to end its long-time fourth place standing among cell phone providers, with AT&T, Verizon Wireless and Sprint Nextel leading the way, T-Mobile's new network could potentially have data download speeds faster than its competitors according to CNN Money.

While the company's present 4G network is only available to customers living in Houston, Kansas City, Baltimore, San Jose, Las Vegas, Phoenix, and Washington D.C., by year's end T-Mobile's coverage expansion will grow to include over 200 million more people.

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In addition to improving its overall service through network enhancements, T-Mobile will also be offering consumers an "un-restricted" pre-paid option with no annual contract.

While most cell phone providers offer two-year contracts that lock-in their customers, T-Mobile's contract-less approach requires only that their customer purchases the phone at full price. The phone's purchase, however, can be spread over a period of months, up to two years if necessary.

"These bold moves serve notice that T-Mobile is canceling its membership in the out-of-touch wireless club," said John Legere, president and CEO of T-Mobile USA Inc, in a Tuesday press release. "This is an industry filled with ridiculously confusing contracts, limits on how much data you can use or when you can upgrade, and monthly bills that make little sense. As America’s Un-carrier, we are changing all of that and bringing common sense to wireless."

If the enhanced network and no contract offer wasn't attractive enough, T-Mobile is also appealing to the tech savvy consumer by releasing its version of Apple's iPhone 5, which will vary somewhat from other providers.

T-Mobile's iPhone 5, which will hits stores on April 12, will reportedly have no data cap and a theoretical speed of up to 42Mbps, reports CNET.com.

Qualifying customers will be able to buy the iPhone 5 for $99.99 down, plus monthly payments.

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"This is an important day for people who love their iPhone but can’t stand the pain other carriers put them through to own one," Legere continued. "We’re rewriting the rules of wireless to provide a radically simple, affordable iPhone 5 experience — on an extremely powerful network."

Related stories:

Merging T-Mobile With MetroPCS Wins Approval From US Agencies

T-Mobile Eliminating 2-Year Cellphone Contract Requirement?

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