The US wireless industry is in for a total overhaul of the way business is conducted. The recent moves by some of the most powerful telecom service providers signal the future is quite near and business will not be as usual. In December 2012 Tmobile USA made two significant announcements. The first, that Tmobile customers would finally be able to purchase a Tmobile branded iphone not just using an unlocked Att iphone for service. Tmobile was the last of the 4 major carriers to offer iphone service in the United States. The second announcement, and much more significant development was the decision to end the handset subsidies that it would offer to its customers. For as long as cell phone customers can remember, there have always been deep discounts given by cell phone carriers in return for a 1 or 2 year cell phone contract; which gave the carriers a much more stable and stronger revenue stream. (See the latest no contract cell phone options here)
Why would Tmobile do this, discontinue the revenue model that has existed and worked very well, generally speaking, for both consumer and corporations alike for years? Well, because Tmobile, and Sprint for that matter, have been losing the war of the telecoms. At&t and Verizon pretty much control a duopoly in the US cell phone service industry. At&t had exclusive rights to the iphone for years and the iphone combined with Verizon cdma network, the largest in the country, has been putting a major squeeze on the other carriers. Tmobile, subsidiary of Deutsche Telekom, a German based telecommunications juggernaut more than likely said enough is enough and has taken off the gloves in an all out race to the bottom. Tmobile will now implore the European model that has worked so well for years. Wireless customers pay full retail price for their cell phones up front, but get a much lower monthly rate on the cell phone service. This strategy has actually been gaining momentum in the US for some time now, but with Tmobile’s full dive into this model, it is sure to turn the industry on its head. (View best smartphone available without contract) This will in effect usher in the era of the prepaid iphone and other high end smart phones. So what does this mean for the US Wireless consumer? It means that your wireless company is actually going to have to give you a great deal to keep your business instead of just locking you into a cell phone contract. Page Plus Cellular, for example, a Verizon Wireless MVNO (Mobile Virtual Network Operator) offers iphone 4s service without contract. The page plus iphone gives you unlimited nationwide calls, unlimited texting with your data plan included for $40 a month. This means Verizon customers get the same Verizon coverage, use the same iphone apps and features they love, but pay about 50 percent less per month for the service. (View Page Plus iphones here) Verizon has quietly started allowing its Verizon iphone 4 and Verizon iphone 4s to be activated on its prepaid plans, more than likely to calm the unrest of the average iphone bill being just north of $100 a month for 3G network coverage. But it may be a little too late for the carrier because page plus plans significantly undercut even the prepaid Verizon iphone plans. (View Page Plus Plans)
Here’s how to activate your current Verizon iphone 4s with Page Plus. If you are currently in Verizon contract, you can still transfer your number to page plus (you will still get hit with an ETF). You can activate your Verizon iphone with Page Plus here: http://freemobiledataplans.com/products-page/body-pageplsu/activate-cdma-iphone-44s-2 . The activation is done remotely; this means you do not have send your phone anywhere and because Page Plus uses Verizon’s nationwide network, you do not have to unlock or jailbreak your iphone to use the service. The US cell phone industry has finally become a competitive industry, lets hope it stays that way.