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« on: October 22, 2009, 12:52:25 am »
If you think about it, for anyone new joining T-Mobile, it won't make any sense to sign a contract again. I thought up an interesting idea... If you pay for the normal subsidized price up front and put the rest on the 20 month EIP with the even more plus plans, you will save money monthly on virtually any combination of phone and plan.
For example: Instead of paying $25 up front for a mytouch and paying $25 a month on the bill, pay $150 up front and that will lower your monthly payment to $18.42 a month for the phone. $18.42 + $79.99 (EM+ unl everything) = $98.41 a month. However, if you do the 2 year contract, you also pay $150 for the phone, and your bill is $99.99 a month. In this case it is only $1.58 in savings a month, but this would probably be the most extreme case (one of the most expensive phones and highly susidized phones) and it proves that in virtually every case, the EM+ plans WILL save you money no matter what!
I am liking this new setup. Another cool thing with EM+ is that without the contracts and subsidies, there are no upgrade fees, data requirements, mail in rebates, etc!
Im gonna do another example just for fun! Take a BB 8520.... Customer wants that phone but only wants voice and texting. They want the discounted price of $129.99 but they dont want the data plan (and if data requirements stay the same, the new $10 unlimited text is not enough to be used for the data requirement). SO if the customer gets the phone on an EM+ plan, they can pay that advertised price of $129.99 up front, and pay $48.94 a month ( 500 min, unl text, + $8.95/month phone installment). Or, they could do the 2 year contract, still pay $129.99 for the subsidized phone, and pay $79.99 a month (minimum EM price with unlimited text and data requirement). Now why would someone pay an extra $31.05 a month AND be stuck in a 2 year contract, stuck with a $30/month required data plan, AND have a $200 termination fee if they cancel?!?!?!
Even More + looks to be pretty awesome compared to Even More!!! New customers would be stupid to go with a contract with this available! Existing customers with grandfathered plans on the other hand.... thats a whole different story....... I know how people are with their "FREE PHONES!" every 2 years and their old ass $19.99 60 minute plans LOL.
(EDIT: This is assuming that T-Mobile will continue to allow you to put a higher amount down when buying a phone and have the remaining balance divided into 19 payments, rather than forcing you to break it up into 20 equal payments. They currently let you put a higher amount than necessary down on the 4-month EIP, so I don't think that will change.)