Friday, 11 January 2013

[Gizmo -] Device manufacturers weigh in on T-Mobile's decision to ditch subsidies, ZTE exec calls it 'brave'

Gizmo - has posted a new item, 'Device manufacturers weigh
in on T-Mobile's decision to ditch subsidies, ZTE exec calls it 'brave''

Members of the mobile industry are continuing to weigh in on T-Mobile's decision
to cease offering subsidies and go all-in with Value plans in 2013. The latest
remarks come from executives of several manufacturers, including RIM and
Microsoft. RIM CMO Frank Boulben told FierceWireless that he's seen several
kinds of pricing models during his time in the industry and that companies "can
live with all the models because fundamentally it's driven by what the end user
wants." Greg Sullivan, Microsoft's senior product manager for Windows Phone,
said that his company is "encouraged" by T-Mobile's move and described it as an
acknowledgement that there's room for different business models.
As we saw with the remarks from the CEOs of AT&T Mobility and Verizon
Communications earlier this week, some execs may like the idea of ending
subsidies, but they're unsure if T-Mobile's plan will work. Zhao Wei, who serves
as VP of ZTE's U.S. handset division, said that T-Mobile's move is "brave," but
he's also not sure if it'll gain popularity because the public "is familiar with
Wei's sentiment seems to be a popular one, and it makes sense considering that
the majority of cellphone customers are accustomed to paying anywhere from $0 to
$200 for a new handset every couple of years and are unaware of the actual price
of such a product. In killing off its subsidies, T-Mobile will expose these
consumers to the full prices of phones, and they'll have to explain how the
customers can save money with them before those folks get scared off. It'll
definitely be interesting to see how T-Mobile plans to accomplish all of this.
The good news is that with the carrier expected to make the switch in the next
"three to four months," we may not have to wait long to see how it all goes
Via TmoNews, FierceWireless

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