Friday, March 08, 2013

T-Mobile MAY Do Away with the 2yr Contract

No official word on this as of yet, but one of the largest cellular companies in the US may make such a bold move. Most of us continue to sign 2yr contract deals with our cell phone provider because of all the seemingly great deals, but if you really look at what you're spending overall you may think otherwise. Sure, you may be getting a phone for around $200 cheaper than if you were to purchase without a contract. However, after the activation fee, the insurance, the taxes and fees, your 'unlimited' data plan - or something close to that - the monthly charge may end up costing you just as much in the long run.

We've all seen the TV ads and heard them on the radio, about Boost Mobile, Net10, Virgin Mobile, etc, which offer no contract plans and just use the major networks' cell towers. Those, I have to admit, are starting to sound more and more appealing. Why pay extra for the same service? You can see an example of that even with mobile broadband internet. Right now 3Gstore offers the Millenicom branded Novatel MiFi 4620LE hotspot, which works off the Verizon network. You get the same 3G/4G service and more data for just about the same price as Verizon PLUS you're not being forced into a 2yr contract. While Verizon offers up to a 10GB plan for $80.00/month, the Millenicom service offers 20GB for $69.99/month. And without having a contract, you can cancel at any time and reactivate service at will.

So, I suppose we'll have to wait and see what route T-Mobile decides to take. If they do end up doing away with the 2yr contract, that means other carriers like Verizon, ATT, and Sprint may also be required to - because we all know if one does it, the others must compete.