The money that AT&T paid as a result of the takeover failure went to Deutsche Telekom, not to T-Mobile USA. It was mainly used to adjust their debt position in Europe, but some has been diverted to supporting the T-Mobile USA network restructuring which will allow the deployment of LTE in 2013 (an essential step to maintaining long-term competitiveness and, - most important to Deutsche Telekom - upholding the saleability of the company).
A by-product of that change will allow the full capabilities of iPhone devices to be experienced on the T-Mobile network. Consequently, however, it would have made absolutely no sense for T-Mobile to commission an iPhone device which could exploit 3G/HSPA+ capabilities on TM's current network setup, since that device configuration would effectively be useless by the middle of next year.
Sprint committed $15.5 billion over the first four years of their deal with Apple and won't break even on the deal until 2015. http://www.sprintusers.com/hesse-takes-a-paycut/.
Verizon and SPrint acquiring the iPhone happened at a time that T-Mobile USA revenues were so disappointing to owners Deutsche Telekom that they were courting both Sprint and AT&T with hopes of a merger that would rescue their disasterous investment in the company: they spent $55 billion in 2001 on the acquisition of Voicestream, but ten years later could only draw an offer of $39 billion from AT&T for a company that had grown from 7m to 33m subscribers over the intervening 10 years).
While selling the iPhone sooner would definitely help the market position of the company, there just isn't enough money to go round to support the critical migration to a LTE network and a specialty iPhone device which would be able to handle 3G/HSPA+ on the AWS spectrum currently used for that purpose.
By next year the AWS spectrum will be dedicated to LTE, while 3G/HSPA+ will be running on their 1900mhz allocation - and any investment in an iPhone to handle 3G/HSPA+ on AWS will have been a TOTAL WASTE.
Sometimes not doing something to address customer demands just makes more sense. Unfortunately.
I have been with T-Mobile for 9 years after letting AT&T mess with me for 8. I love T-Mobile and plan to buy an unlocked iPhone 5. Considering that I have a very good plan with TMO that is grandfathered in....even if I pay full price for the new iPhone, over two years I still save money. Hopefully TMO will get the iPhone in 2013 when their LTE network is complete.
The iphone isn't even capable of 4G speeds. I get over 15mbps on my phoe which is capabe of 42mbps. How fast will it be with the iphone which is only capable of 14.4mbs. The average speed might be 1-3mbps which imo is slow in comparison. Another issue is there is no wifi calling or tethering on the iphone so how is it worth spending over $600 to get the device? The iPhone 5 is expected to cost over 800 unlocked so it works out cheaper to jump to a carrier that has the device.
Having bought nine Android devices for myself and family and only one Apple device (iPod), there is no way I can be considered and Apple fanboy, but I do think this in an unduly negative view of the prospects for the iPhone on the TM network.
My Samsung Vibrant, with a 7.2mbps modem was easily capable of downloads in the 4-6mbps range, so there is no reason to think that, once the network re-farming is complete, an iPhone device with a 14.2mbps modem cannot equal or exceed that performance.
Even with a Galaxy S3 and its 42mbps capability, I have yet to see a download speed which exceeds that which was possible on my Vibrant. In the end, the capability of the serving tower, its level of congestion and its backhaul will have a more profound infuence on the performance.
While the specs of the upcoming iPhone release are as yet unknown, there will surely be a faster modem onboard which offers greater potential for those whose local network service can support it.
Since tethering isn't likely to be an option for any iPhone user, TM's upcoming new truly unlimited data plan will be ideal for anyone wishing to use an iPhone on the TM network. They have just announced a plan with no caps, no throttling and no overages which will cost Classic plan customers $30/month and Value plan customers $20/month. All the plan lacks is an ability to use tethering/ mobile hotspot.
The Value plan is a perfect fit for those with an already paid-for iPhone either migrating from AT&T or who buy the device unlocked from the Apple store. Absolutely unlimited everything for $69.99.
That's $70 a month less than the current cost of unlimited talk and text, with just 5GB of data from AT&T. Their 32GB iPhone 4s is $299.99 with subsidy, so you can safely conclude that the iPhone 5 won't be any cheaper.
So let's say that the unlocked iPhone 5 will cost $800 from the Apple store. That means you would be paying around $500 more for it than you would getting a subsidized device from AT&T. However, you would have to pay $1,680 more for the supporting plan from AT&T over the two years of the contract, compared with the new plan from TM. Making a net difference in favor of TM of $1,180 over the same period.
I haven't run the numbers for the Verizon and Sprint options, but I'm guessing TM will still come out on top.
The upcoming unlimited data plan is a brilliant option for TM as it seeks to carve out a share of the Apple market without having to drown itself in the same sales commitments to Apple ($15.5b over four years) that have caused such problems for Sprint.
I only used $800 as an example of the iPhone 5 cost because that was the amount suggested by the person to whom I was responding.
It will most likely be a cashflow decision pressing people to leave, if they are looking at all the issues, since it will certainly save money over the full life of the contract to stay with TM rather than go to the competitors.
Of course, cashflow is a serious consideration, especially for people on family plans, but my priorities are such that I would never consider dropping $1200 on four subsidized iPhones for my family from AT&T, when I can get four S3s for less than $750 from TM or four S2s for just $200, and pay way less for my plan.
For every person who considers leaving to get a subsidized iPhone elsewhere, there will be someone else looking at the huge savings on their monthly plan costs by bringing their unlocked iPhone to TM from AT&T.
That means that is time to switch carriers I have given tmobile my business for 4 years i didnt care abou the iphone the first years because i was happy with android, at this point im very frustated with the android OS and its time to give it a chance to iIOS5-6.
I think Tmobile saw this happening long time ago but the management never cared about it since they thought with the ATT merger Tmobile was going to get the iphone that didnt happen, another bloody year for tmobile
TMO currently (85mo *without tax, insurance and extra services) 24 mos = 2040 + Unlocked iphone 645 =2,685
VZO (100mo 2GB this plan fits me perfectly since i barely use 1 GBe/m) = 2400 + iphone 199 = 2,599
werizon will have true LTE and coverage everywhere
I am not sure why you are paying so much for service. I pay 79.99 before tax and discount for two lines, unlimited text, 2GB high speed data and 1000 min to share. The unlimited plan is 100.00 for two lines yet you are paying 85.00 a month for one line. The unlimited value plan with 2Gb of data is 59.99 which is $40.00 a month cheaper than what Verizon has to offer so why are you paying 85.00 a month before tax? You are doing something wrong.
In my experience the Verizon LTE is about the same speed as Tmobile HSPA+ service. There are times HSPA is even faster than LTE.
Im paying 103.58 after taxes and insurance Im a postpaid customer.
TMO can be the fastes network in town but if they dont offer nothing else but androds then people are going to come and go because the selection.
Some people are with tmo because of the price, coverage in their city, or the phones Tmo offers when i switched to Tmo i i did it because they were the first one to offer the android G1
I still don't get why you paying so much. I am post paid on a value plan and pay less than $100 after taxes and a 12% discount for 2 lines. I also have insurance on one line. I would like to get an iphone but there is no way I would increase my bill just to have one. The lowest family plan on Verizon is $150.00 with 4GB data to share compared to the 80.00 Tmobile family share plan. That's 70.00 more before taxes.
If you have an iPhone why would you have a classic plan? The value plan makes a lot more sense. The only benefit of the value plan is a discounted phoe but in the long run you will end up paying a lot more for service. The value plan with 500 minutes talk, text and data is 49.99.
You can buy the iphone full price and still end up paying less than what you would pay with Verizon with a value plan. If I were you I would wait to see what happens.Another benefit is T-Mobile will ofeer unlimited data soon.
So are you at a point where you can change to a Value plan with TM? If so you can get Unlimited talk and text for $49.99 (or 500 minutes + unlimited text for $39.00) and the 2GB data plan for another $10. So your Value options to support the unlocked iPhone with TM would be either $49.99 or $59.99 per month, or $1200/$1440 over 24 months.
Even if the unlocked iPhone 5 from the Apple store costs you $800 that will still be less than the price with Verizon.