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AT&T, Verizon CEOs show interest in monthly installments

updated 01:16 pm EST, Tue January 29, 2013

T-Mobile strategy could spread to other US carriers

The CEOs of AT&T and Verizon have expressed interest in T-Mobile's plan to drop subsidies and offer the option of buying phones through monthly installments, a Reuters report says. "That's something we've looked at on several occasions. I kind of like that idea," says AT&T's CEO, Randall Stephenson. "It's something we're going to be watching."

Verizon CEO Lowell McAdam calls the concept "very intriguing," but worries that shoppers might not want to pay full price for a phone. T-Mobile is planning to offset the initial burden on shoppers by keeping monthly bills down. During the past year, in fact, the company has been positioning itself as a carrier of choice for people who already have an unlocked device, such as a Nexus 4 or an iPhone 5.

It remains to be seen if T-Mobile will apply the monthly installment option to iPhones when it starts its own sales of them later this year. Apple has enjoyed success advertising the iPhone under a $199 pricepoint, regardless of the subsequent costs to buyers, and may be hesitant to let T-Mobile complicate its marketing.



By Electronista Staff
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Comments

  1. Stuke

    Junior Member

    Joined: 02-11-05

    Shocking

    "Like the idea" and "something we'll be watching" sounds like banter for "wholly cow, somebody else may steal our monopolies...but we'll wait and see if it gets them subscribers and makes them money (with Apple satisfied)." Meanwhile, in the back room and board rooms they're saying, "what's our current unlock position given the current legislative change, and what's our early termination fee...we might want to quietly change that."

    Go for it T-Mobile, and together with Sprint start beating AT&T/Verizon behemoths with consumer-oriented plans!

  1. Mechanic

    Fresh-Faced Recruit

    Joined: 12-11-11

    l dont think there is a bigger pud than stevenson in the entire industry

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