At an event on Tuesday, T-Mobile showed-off an iPhone it hopes will raise its ranking from the position of No. 4 U.S. carrier. The model is designed to take advantage of the company's new LTE network that T-Mobile says it's building across the country.
Unlike other iPhone models, T-Mobile's unit will benefit from being able to "fall back" to their current HSPA+ 4G network speeds instead of the 2G or 3G back-ups that other carriers use.
The T-Mobile iPhone will be among the first to be priced under its new "no contract" scheme. That means the iPhone - as well as the Samsung Galaxy Note II, the Blackberry (BBRY) Z10 (which went on sale Tuesday), the upcoming Samsung Galaxy S IV (expected May 1st) and the HTC One will all sell for $99 down and $20 per month for 24 months.
This idea is part of T-Mobile's plan for simplifying how consumers buy and pay for a phone. They call themselves the "un-carrier". Unlike the other major carriers, T-Mobile is offering no-contract plans with unlimited voice, text and messaging plus a minimum of 500 KB of data for $50/month. Additional data will be added at cost in 2 GB increments.T-Mobile estimates that after two years, users will be done paying for their phone, thereby eliminating those costs until a consumer chooses to buy a new phone. Comparing their new plans with the competition (they used AT&T (T) as their example) the company estimates the savings as more than $1,000 over that two year span. At the press event, T-Mobile CEO Legere said the iPhone pricing plan would help the company stabilize its post-paid subscriber base after chronic market share losses to AT&T and Verizon (VZ). In recent statements, both MetroPCS and T-Mobile said they continue to support the proposed merger and see integration as benefitting the financial standing of both wireless providers. Paulson & Co. and PSAM declined to comment beyond public statements when queried on developments to the proposed MetroPCS and T-Mobile merger. -- Written by Antoine Gara in New York Follow @antoinegara
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV