AT&T was late to the game with its no-contract plans and while AT&T fans may be in love with the new plans, T-Mobile says that they are expensive and confusing. The new plans which were revealed earlier today provide discounts for people that sign up for AT&T’s service without signing a contract, customers will be able to bring their own phone, pay full price for one, or use the carrier’s installment plan, Next.
After you do the complicated math, in multiple cases, these new plans are actually a price hike for consumers. – T-Mobile marketing executive Andrew Sherrard
As one would expect, Sherrard did not waste any time in bringing up that a family of four could save as much as $600 if they chose T-Mobile’s Simple Choice plan instead of AT&T’s no-contract plan.
Since the AT&T Mobile Share Value plans have been released with the goal of decreasing the cost of a person’s monthly plan, T-Mobile’s statements are quite harsh. The Share Value plans allow a customer to save as much as $15 per month if they are not paying for a subsidized phone.
Of course, no-contract plans such as the ones put out by AT&T have already become popular overseas but until recently, phone subsidies were a way for carriers to hike up prices in the United States and collect extra money from customers even if they were bringing their own phone and did not pay for a subsidized one.
T-Mobile has seen a massive increase in its customer base since its CEO got rid of contracts and lowered monthly rates. In the last quarter alone, the carrier saw 1 million new customers, which is a larger increase than many of its competitors are seeing.
Since AT&T’s new plans threaten T-Mobile it is not surprising that the carrier is fighting back and bashing the plans. The math does show that customers are not saving tons with AT&T’s new plans and that T-Mobile does cost less in most situations, however the service that someone receives with T-Mobile is far from being as good as what AT&T is capable of offering.
Photo Credit: IVN