In addition to T-Mobile announcing that they'll start selling Apple products in 2013
, is the potentially more interesting fact that they'll stop selling subsidized phones. Speaking at Deutsche Telekom's annual investor conference, T-Mobile CEO John Legere confirmed that subsidized phones will no longer be a part of the company's business model next year, with consumers either paying full price for devices, or choosing to pay the device off in installments.
T-Mobile will offer the iPhone to consumers, for example, if they pay an up front $99 and then pay off the remaining cost of the device through $15 to $20 monthly payments tacked on to their existing bill. T-Mobile hopes that this helps differentiate them in the market moving forward.
"We think there is a huge room for a carrier to change in a way that the larger players will choose to or will not be able to respond to," said Legere.
Legere also insisted that while their value (non-subsidized phone) plans earn them less revenue, they'll make up the difference by not having to subsidize devices. The CEO also noted that Value customers tend to stay on board an average of two months longer than Classic customers do.
It remains unclear when T-Mobile will launch the iPhone or LTE, but the company made it clear a core part of their strategy will be picking on AT&T. The CEO announced that a core marketing slogan for the company will be: "you love you iPhone, you hate AT&T." "I want you to get used to that tone because that is the way we're going to play," insisted a CEO whose company just a few months ago was eager to merge with AT&T.