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Cellular Phone Forum / Providers / T-Mobile / August 2004

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What's the Logic Behind This?

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Scott en Aztlan - 06 Aug 2004 03:54 GMT
I understand that they want to recover their costs when they sell me
subsidized hardware, but why on Earth does T-Mobile insist on a
12-month contract even when they are not subsidizing your equipment
purchase (e.g. if you pay full price for a phone, or if you provide
your own)?  Cingular has no problem signing me up for a month-to-month
contract, and will even sell me an unlocked phone if I pay full retail
price for it. But T-Mobile wants to lock me into a long-term deal,
even though they have no acquisition costs to recover.

What's up with that?

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I have a life - 06 Aug 2004 05:23 GMT
They only require contract if you change to promotional price plan, or get
subsidized or break on price...

If you dont qualify for discount, you dont get contract requirement.. just
pay full freight

> I understand that they want to recover their costs when they sell me
> subsidized hardware, but why on Earth does T-Mobile insist on a
[quoted text clipped - 10 lines]
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Scott en Aztlan - 06 Aug 2004 05:34 GMT
>They only require contract if you change to promotional price plan, or get
>subsidized or break on price...
>
>If you dont qualify for discount, you dont get contract requirement.. just
>pay full freight

That's not what the clerk told me. He said that any new line requires
a 12-month commitment.
I have a life - 06 Aug 2004 05:42 GMT
New line is different then simply gettign new handset...

You dont have to give up line to get discount...

> >They only require contract if you change to promotional price plan, or get
> >subsidized or break on price...
[quoted text clipped - 4 lines]
> That's not what the clerk told me. He said that any new line requires
> a 12-month commitment.
Carl. - 07 Aug 2004 01:13 GMT
I don't think he has a line to begin with.  It doesn't sound like it.

> New line is different then simply gettign new handset...
>
[quoted text clipped - 10 lines]
> > That's not what the clerk told me. He said that any new line requires
> > a 12-month commitment.
Scott en Aztlan - 07 Aug 2004 01:25 GMT
>I don't think he has a line to begin with.  It doesn't sound like it.

Correct. I am signing up for new service.
Carl. - 07 Aug 2004 04:21 GMT
> >I don't think he has a line to begin with.  It doesn't sound like it.
>
> Correct. I am signing up for new service.

In that case, the answer is "because they can" and they have to morals.
Carl. - 08 Aug 2004 06:01 GMT
> > >I don't think he has a line to begin with.  It doesn't sound like it.
> >
> > Correct. I am signing up for new service.
>
> In that case, the answer is "because they can" and they have to morals.

Um, that was "no morals."
I have a life - 07 Aug 2004 12:33 GMT
The logic behind it is simple...

They discount or give you a phone for free... You agree to stay with the
service for one year (or two or more with other carriers)

TMobile's primary business is not selling devices... It is generating income
by monthly charges, overage charges, pay per event charges... Simply put...
The income generated by you staying with TMobile for the year...

Sorry for earlier confusion...

> I don't think he has a line to begin with.  It doesn't sound like it.
>
[quoted text clipped - 17 lines]
> Checked by AVG anti-virus system (http://www.grisoft.com).
> Version: 6.0.734 / Virus Database: 488 - Release Date: 8/4/2004
Scott en Aztlan - 07 Aug 2004 15:55 GMT
>The logic behind it is simple...
>
>They discount or give you a phone for free...

You seem to have missed the part where I said they are not supplying
me with a phone.

>You agree to stay with the
>service for one year (or two or more with other carriers)

Actually, other carriers (e.g. Cingular) are more than happy to sign
me up month-to-month as long as they are not providing me with
subsidized hardware.

T-Mobile is not, and I'm wondering why. Perhaps their service sucks so
badly that they know people would bail if they weren't locked in to a
long-term contract. Or, as the other poster said, they do it because
they can, and because they are greedy. I was hoping to hear a less
sinister explanation, but apparently there isn't one.

>TMobile's primary business is not selling devices... It is generating income
>by monthly charges, overage charges, pay per event charges... Simply put...
>The income generated by you staying with TMobile for the year...

Cingular is in the same business, yet they somehow manage to be
reasonable.
I have a life - 07 Aug 2004 19:08 GMT
As the other poster said... because then choose to...

Why does one car dealer offer one thing and another doesnt?

Business choice... Soemtimes good sometimes bad, but it is their choice...

Doesnt mean they are heartless, doesnt mean they dont want business...

Choice based on their plans...

If you are so in love with Cingualr, why even bother asking about TMobile?

> >The logic behind it is simple...
> >
[quoted text clipped - 22 lines]
> Cingular is in the same business, yet they somehow manage to be
> reasonable.
Scott en Aztlan - 09 Aug 2004 00:42 GMT
>As the other poster said... because then choose to...
>
[quoted text clipped - 7 lines]
>
>If you are so in love with Cingualr, why even bother asking about TMobile?

Because T-Mob's unlimited GPRS Internet access is $19.95/month with a
voice plan; Cingular's is $79.95/month. ;) Besides, here in SoCal,
T-Mobile *is* Cingular (T-Mob uses Cingular's network). ;)
I have a life - 09 Aug 2004 01:37 GMT
Actually, it will shortly BE ALL T-Mobile's network... Cingular has sold all
of the network in CA and NV to Tmobile...

> >As the other poster said... because then choose to...
> >
[quoted text clipped - 11 lines]
> voice plan; Cingular's is $79.95/month. ;) Besides, here in SoCal,
> T-Mobile *is* Cingular (T-Mob uses Cingular's network). ;)
gopi - 10 Aug 2004 12:37 GMT
> As the other poster said... because then choose to...

Personally, I don't think T-Mobile thought about it. They have a
procedure for new customers, simple as that. You get a subsidized
phone, you get a contract, everybody's happy. Why wouldn't you want a
phone? How're you going to use cellular service without a phone?

Over here in Germany, the general pattern seems to be a 24 month
contract with a subsidized phone, or no phone and a $8 or so discount
per month, or no contract and you pay the same rates as somebody who
took a subsidized phone. SMS messages are around $0.25 each, and MMS
are close to a dollar. ick.
Scott en Aztlan - 10 Aug 2004 15:46 GMT
>Personally, I don't think T-Mobile thought about it. They have a
>procedure for new customers, simple as that. You get a subsidized
>phone, you get a contract, everybody's happy. Why wouldn't you want a
>phone? How're you going to use cellular service without a phone?

"I paid full price for the phone."

"I already own an unlocked GSM phone and want to use it."

I'm sure there are other reasons why someone might not need or want
subsidized hardware.

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Carl. - 11 Aug 2004 05:44 GMT
> >Personally, I don't think T-Mobile thought about it. They have a
> >procedure for new customers, simple as that. You get a subsidized
[quoted text clipped - 7 lines]
> I'm sure there are other reasons why someone might not need or want
> subsidized hardware.

I think he meant those questions rhetorically as examples of the company not
thinking.
Steevo@my-deja.com - 11 Aug 2004 21:03 GMT
>That's not what the clerk told me. He said that any new line requires
>a 12-month commitment.

Why, that's because the clerk gets paid commission based on your
signing up for a contract. He can't give you a line without a contract
because he wouldn't make a cent.

I am fairly sure that if you call Tmobile on their toll free number
and activate your owned phone you will be able to do it.  The
difference? No commissioned sales rep.   Sad but true.
Scott en Aztlan - 11 Aug 2004 23:30 GMT
>>That's not what the clerk told me. He said that any new line requires
>>a 12-month commitment.
>
>Why, that's because the clerk gets paid commission based on your
>signing up for a contract. He can't give you a line without a contract
>because he wouldn't make a cent.

Holy conflicts of interest, Batman!

>I am fairly sure that if you call Tmobile on their toll free number
>and activate your owned phone you will be able to do it.  The
>difference? No commissioned sales rep.   Sad but true.

Sad for T-Mobile. They (or their greedy commissioned sales rep) chased
away a customer who was ready to sign up right then and there.

Ah, well, I'm sure they neither notice nor care. ;)

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What's In A Name? - 27 Aug 2004 05:52 GMT
> Sad for T-Mobile. They (or their greedy commissioned sales rep) chased
> away a customer who was ready to sign up right then and there.

How dare a "greedy" sales rep want to earn a living.  Anyway, there is no
option to choose a contract when a sales rep activates a phone.  The
contract is automatically populated.  No way around it.  Customer care, on
the other hand, who knows what they can and cannot do.
Todd Allcock - 13 Aug 2004 05:17 GMT
> I am fairly sure that if you call Tmobile on their toll free number
> and activate your owned phone you will be able to do it.  The
> difference? No commissioned sales rep.   Sad but true.

Actually in my experience T-Mo would still require the contract.  As
others have posted, T-Mo probably either never put any thought into a
procedure for those who don't need a subsidy, or assumes that those
unwilling to commit are far more likely to churn (otherwise they
wouldn't be avoiding a contract) and therefore aren't desireable
customers.

While it's true Cingular does allow new month-to-month activations
without subsidies, that's a very small market compared to the
traditional "sign up and get a free phone" activation- I assume T-Mo
has their reasons not to exploit the no-contract market.

Way back when I was a Cingular dealer, we did a few month-to-month
activations- they were mostly contractors on temporary jobs needing
just a few months of service in that area. Cingular paid us very
little for those activations, but who could blame them since they
themselves would make little revenue from them.
 
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