YOU ARE AT:Mobile MinuteT-Mobile US invites us to go overboard with Underground (RCR Mobile Minute)

T-Mobile US invites us to go overboard with Underground (RCR Mobile Minute)

Mobile Minute:
The Mobile Minute is sponsored by SpiderCloud Wireless. T-Mobile US has won millions of new customers by encouraging mobile subscribers to ditch their contracts and get the devices they really want. But the carrier has paid dearly for those customers, and now it’s trying to turn its device-focused marketing strategy into a money maker. T-Mobile is selling limited edition smartphones on a new part of its website that it calls The Underground. The Underground promises “exclusive and performance-centric” devices. Today the site features the Samsung Galaxy S5 in gold, for $27.50/month plus the cost of wireless service.
T-Mobile led the move to no-contract pricing, and other carriers have followed suit. As consumers flock to the new pricing plans, carriers are seeing lower service revenues and higher device revenues. So it makes sense for carriers to encourage customers to spring for a top-of-the-line device, and T-Mobile’s Underground may again set a precedent for its competitors.
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ABOUT AUTHOR

Martha DeGrasse
Martha DeGrassehttp://www.nbreports.com
Martha DeGrasse is the publisher of Network Builder Reports (nbreports.com). At RCR, Martha authored more than 20 in-depth feature reports and more than 2,400 news articles. She also created the Mobile Minute and the 5 Things to Know Today series. Prior to joining RCR Wireless News, Martha produced business and technology news for CNN and Dow Jones in New York and managed the online editorial group at Hoover’s Online before taking a number of years off to be at home when her children were young. Martha is the board president of Austin's Trinity Center and is a member of the Women's Wireless Leadership Forum.