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T-Mobile USA's 'Jump' program allows 2 smartphone upgrades a year for $10/month

post #1 of 51
Thread Starter 
T-Mobile, the fourth-largest carrier in the U.S., announced a new program on Wednesday dubbed "Jump" that allows customers to upgrade their smartphone as often as two times per year, at an added cost of $10 per month.

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Customers line up ahead of T-Mobile's iPhone 5 launch in April. Image via BTIG Research's Walter Piecyk (@piecykw)


The Jump program will allow customers to pay the same subsidized price as a new customer, but without the need to wait the industry-standard two years for upgrade eligibility. Subscribers will have to wait at least six months after enrollment, after which they will be able to upgrade their phone twice per year.

"At some point, big wireless companies made a decision for you that you should have to wait two years to get a new phone for a fair price. That's 730 days of waiting. 730 days of watching new phones come out that you can't have. Or having to live with a cracked screen or an outdated camera," said John Legere, president and CEO of T-Mobile US. "We say two years is just too long to wait. Today, we're changing all that with the launch of Jump! Now, customers never have to worry about being stuck with the wrong phone."

The program will run $10 per month, per phone, plus taxes and fees. The carrier said the cost is just $2 more per month than many customers pay for handset protection.

The program requires that customers trade in an eligible T-Mobile phone in good working condition at a participating store location. For example, a user might be able to trade in their current iPhone 5 for Apple's next-generation iPhone, expected to arrive later this year, and would pay the standard subsidized rate traditionally starting at $200.

The carrier also announced on Thursday that it has expanded its 4G LTE network to 157 million people in 116 metropolitan areas in the U.S.

T-Mobile also unveiled a program that will allow families to get four phone lines with unlimited talk, text and Web and up to 500 megabytes of high-speed data for $100 per month. The plan doesn't require a credit check or annual service contract.
post #2 of 51
Interesting. For an extra $120/year you can buy a phone with subsidized pricing twice each year?

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #3 of 51
Quote:
Originally Posted by Suddenly Newton View Post

Interesting. For an extra $120/year you can buy a phone with subsidized pricing twice each year?
That's with trading in your current phone.
post #4 of 51
6 years after enrollment? typo in the article.
post #5 of 51
So you pay $120 for 6 years for nothing and then of T-Mobile is still around and plans are what they are now you can upgrade twice a year? No thanks.
post #6 of 51
Quote:
Originally Posted by Captain J View Post

So you pay $120 for 6 years for nothing and then of T-Mobile is still around and plans are what they are now you can upgrade twice a year? No thanks.

No, you wait 6 months. AI just has poor editing as always.

post #7 of 51
Quote:
Originally Posted by MikeJones View Post

No, you wait 6 months. AI just has poor editing as always.

Ah, that makes more sense. Thanks.
post #8 of 51
Fees, fees, and more fees. It adds up and makes me wonder how their pricing matches up long term.
post #9 of 51
Quote:
Originally Posted by Suddenly Newton View Post

Interesting. For an extra $120/year you can buy a phone with subsidized pricing twice each year?

If you're already paying insurance on the phone there's little or no increase, in fact some will see a decrease.
post #10 of 51
Trading in the phone is the deal breaker. Pay $10/month and lose your phone to keep upgrading, or wait two years and keep/resell your phone and save $240. This reminds me of the terrible lease deals you see on some cars.

I bet you have to keep extending your two year contract each time.
post #11 of 51
Quote:
Originally Posted by ghostface147 View Post

Fees, fees, and more fees. It adds up and makes me wonder how their pricing matches up long term.

And yet even with that extra $10 a month T-Mobile's plans that include unlimited talk, text, and data (and yes that is real unlimited data without hidden caps or throttling) are still like $30 or more cheaper than the lowest tier AT&T or Verizon plans.

post #12 of 51
Quote:
Originally Posted by bleh1234 View Post

That's with trading in your current phone.

The fact that you have to trade in your current phone makes this a crappy "deal." A 6-12 month old iPhone would go for quite a bit of money if you sold it used on eBay or Craigslist.
post #13 of 51
But this requires a phone in good working condition. Hardly a replacement for insurance.
post #14 of 51
Quote:
Originally Posted by Cloud30000 View Post

Trading in the phone is the deal breaker. Pay $10/month and lose your phone to keep upgrading, or wait two years and keep/resell your phone and save $240. This reminds me of the terrible lease deals you see on some cars.

And yet with AT&T or Verizon you've spent far more than $240 extra dollars just so they can recoup their subsidy from you in their extremely expensive plans.

post #15 of 51

Quote:
Originally Posted by Suddenly Newton View Post

Interesting. For an extra $120/year you can buy a phone with subsidized pricing twice each year?

 


Quote:
Originally Posted by bleh1234 View Post


That's with trading in your current phone.

So over the course of two years I'm paying $240 for the "fee", plus $600 for the "new phones", just so I can upgrade every six months to the latest and the greatest. Unbelievable as it is, some people will actually pay for this "service".

 

Here's an alternative: Sell your phone every six months and buy a new one. If it's an iPhone, you can probably sell it for $200 less than its original price. In two years you're only out the $600 and save the $240 fee.

 

 

post #16 of 51

$10/month is the "Android tax" for obtaining software updates and security fixes that are still a year out of date.


Edited by Cpsro - 7/10/13 at 1:01pm
post #17 of 51
Quote:
Originally Posted by Sacto Joe View Post

 


So over the course of two years I'm paying $240 for the "fee", plus $600 for the "new phones", just so I can upgrade every six months to the latest and the greatest. Unbelievable as it is, some people will actually pay for this "service".

No, you pay $240 to pay the subsidized $99 or $199, etc. cost of the new phone.

post #18 of 51
Quote:
Originally Posted by CustomTB View Post

But this requires a phone in good working condition. Hardly a replacement for insurance.

 

Quote:
Originally Posted by MikeJones View Post

And yet with AT&T or Verizon you've spent far more than $240 extra dollars just so they can recoup their subsidy from you in their extremely expensive plans.

You missed the point. You can stay with your two year Verizon plan and put the $240 in your own pocket by selling your Verizon phone every 6 months and buying a new one. And that's assuming you can only sell a six month old iPhone for $200 off the original purchase price. I'd guess you can do better than that.

post #19 of 51
Think I'll stick to selling my iPhone on eBay for a nice chunk to upgrade to the newest model and pay the upgrade fee. The contract renewal doesn't bother me.
post #20 of 51
Quote:
Originally Posted by Sacto Joe View Post

 

You missed the point. You can stay with your two year Verizon plan and put the $240 in your own pocket by selling your Verizon phone every 6 months and buying a new one. And that's assuming you can only sell a six month old iPhone for $200 off the original purchase price. I'd guess you can do better than that.

How am I keeping the $240 in my pocket when the extra costs of Verizon's plans will have me handing that back to them in a couple of months?

post #21 of 51

Sacto Joe, you might want to re-read the article again:

 

For example, a user might be able to trade in their current iPhone 5 for Apple's next-generation iPhone, expected to arrive later this year, and would pay the standard subsidized rate traditionally starting at $200.

 

Where exactly did you get that someone would be paying $600 for their new phone when the article directly refutes you?

post #22 of 51
Quote:
Originally Posted by Sacto Joe View Post

 


So over the course of two years I'm paying $240 for the "fee", plus $600 for the "new phones", just so I can upgrade every six months to the latest and the greatest. Unbelievable as it is, some people will actually pay for this "service".

 

Here's an alternative: Sell your phone every six months and buy a new one. If it's an iPhone, you can probably sell it for $200 less than its original price. In two years you're only out the $600 and save the $240 fee.

 

 

 

Quote:
Originally Posted by MikeJones View Post

No, you pay $240 to pay the subsidized $99 or $199, etc. cost of the new phone.

No, you pay $240 for the right to pay $99 or $199 every six months. But you can sell it every six months for that difference and pocket the $240.

post #23 of 51
Quote:
Originally Posted by MikeJones View Post

Sacto Joe, you might want to re-read the article again:

 

For example, a user might be able to trade in their current iPhone 5 for Apple's next-generation iPhone, expected to arrive later this year, and would pay the standard subsidized rate traditionally starting at $200.

 

Where exactly did you get that someone would be paying $600 for their new phone when the article directly refutes you?

I'm comparing an existing two year plan to this new plan. Over two years, with this plan, you'd pay $200 every six months for the new phone, and you pay an additional $240 over two years for the "right" to do this. You do do math, don't you?

post #24 of 51
Quote:
Originally Posted by Sacto Joe View Post

 

No, you pay $240 for the right to pay $99 or $199 every six months. But you can sell it every six months for that difference and pocket the $240.

Most people will be getting much less than the full unsubbed cost for their phone so they won't be pocketing anything.

post #25 of 51
Quote:
Originally Posted by Sacto Joe View Post

I'm comparing an existing two year plan to this new plan. Over two years, with this plan, you'd pay $200 every six months for the new phone, and you pay an additional $240 over two years for the "right" to do this. You do do math, don't you?

 

Sure if you falsely assume that everyone on this plan are going to buy a new phone every 6 months which they aren't. Most likely people will be using it to upgrade every 12-18.

post #26 of 51
Quote:
Originally Posted by MikeJones View Post

Most people will be getting much less than the full unsubbed cost for their phone so they won't be pocketing anything.

Only true if most people would be trying to sell an Android....

post #27 of 51
Quote:
Originally Posted by MikeJones View Post

 

Sure if you falsely assume that everyone on this plan are going to buy a new phone every 6 months which they aren't. Most likely people will be using it to upgrade every 12-18.

"Falsely"? Where's your substantial proof that "most likely people will be using it to upgrade every 12-18"?

 

(Crickets)

 

Besides, what's the sense in taking advantage of this program if you won't get all of your money's worth out of it?

post #28 of 51
Quote:
Originally Posted by Sacto Joe View Post

Only true if most people would be trying to sell an Android....

Nope.  You honestly think you're going to get the full unsubbed price of a 5 when reselling a 3GS or 4? Please...  And yes, many people do keep holding on to an iPhone for many many years.

post #29 of 51
Quote:
Originally Posted by Sacto Joe View Post

Only true if most people would be trying to sell an Android....

 

Quote:
Originally Posted by MikeJones View Post

Nope.  You honestly think you're going to get the full unsubbed price of a 5 when reselling a 3GS or 4? Please...  And yes, many people do keep holding on to an iPhone for many many years.

Well, that gets to the rub of the matter. This is only going to be a useful program for Android users. It's basically useless for iPhone users. And it's mostly useful to Android users because the resale values suck.

post #30 of 51
Whatever. This plan is shady. $120 extra a year losing your phone. No, thanks. I paid $199 for my iPhone and after 2 years, I sold it for over $400, pocket $200 after upgraded with the new iPhone. T-mobile plan: $50/line with unlimited talk text, but 500MB data only. That's enough for streaming some songs and emails...hidden cost people. Be careful.
post #31 of 51
Quote:
Originally Posted by Sacto Joe View Post

"Falsely"? Where's your substantial proof that "most likely people will be using it to upgrade every 12-18"?

 

(Crickets)

 

Besides, what's the sense in taking advantage of this program if you won't get all of your money's worth out of it?

 

Your correct. It's actually closer to 18-24 months. And it comes straight from Verizon, for example.

 

http://www.usatoday.com/story/tech/2013/04/12/verizon-extends-upgrade-requirement/2079451/

 

"In a statement on its website, Verizon said the move aligns its policy with the typical length of a phone contract, and with the way people buy new phones. "

 

Now if you think that Verizon is lying about the typical length of time between its customers upgrading their phones please post your evidence. That you may upgrade more often does not mean that the average consumers does.

 

Quote:
Originally Posted by Sacto Joe View Post

 

Well, that gets to the rub of the matter. This is only going to be a useful program for Android users. It's basically useless for iPhone users.

How so? The average selling price of 3GS and 4s (of which there is a good chunk of current users) is around 1/4 to 1/2th of a current unsubbed iPhone 5. So they will not be "pocketing" anything as you claim.

post #32 of 51
Quote:
Originally Posted by MikeJones View Post

 

Your correct. It's actually closer to 18-24 months. And it comes straight from Verizon, for example.

 

http://www.usatoday.com/story/tech/2013/04/12/verizon-extends-upgrade-requirement/2079451/

 

"In a statement on its website, Verizon said the move aligns its policy with the typical length of a phone contract, and with the way people buy new phones. "

 

Now if you think that Verizon is lying about the typical length of time between its customers upgrading their phones please post your evidence. That you may upgrade more often does not mean that the average consumers does.

 

How so? The average selling price of 3GS and 4s (of which there is a good chunk of current users) is around 1/4 to 1/2th of a current unsubbed iPhone 5. So they will not be "pocketing" anything as you claim.

Jeez, you just don't get it, do you? No more time to waste on you....

post #33 of 51
Quote:
Originally Posted by fallenjt View Post

Whatever. This plan is shady. $120 extra a year losing your phone. No, thanks. I paid $199 for my iPhone and after 2 years, I sold it for over $400, pocket $200 after upgraded with the new iPhone. T-mobile plan: $50/line with unlimited talk text, but 500MB data only. That's enough for streaming some songs and emails...hidden cost people. Be careful.

The 2GB of data plan is $60 and the unlimited plan is $70. Verizon's base plan plus 2 GB of Data is $100. What should anyone be careful about? Even adding on the $10 per month fee you are still paying 30 dollars less if you go with the 2GB plan than Verizon. AT&T's prices are basically the same as Verizon's.

post #34 of 51

You wouldn't be paying $600 outright. The iPhone, for instance, would be sold to you for $145 the day you ordered it, and the debt on your previous phone forgiven (as long as you turn it in). But you'd have to pay the eventual $650 for the phone by paying the $10 EIP. It's sort of like leasing a car.

post #35 of 51

You wouldn't be paying $600 outright. The iPhone, for instance, would be sold to you for $145 the day you ordered it, and the debt on your previous phone forgiven (as long as you turn it in). But you'd have to pay the eventual $650 for the phone by paying the $10 EIP. It's sort of like leasing a car.

post #36 of 51

Both Verizon and AT&T now have a 24 month upgrade policy. That means you won't get your subsidized price of $199 (actually $235 after activation fee) for a base model iPhone every two years. Selling a 2 year old iPhone will not give you a lot of money even if it is excellent shape due to the age. If you sell your phone prior to your 24 month upgrade date you will get a far better price but will then need to pay full price which can be around $650 or more  plus the $35 activation fee again. No matter how you do the math T-Mobile is offering a far better deal with a lot less effort. I also think people like not having to deal with the hassle of Ebay or Craigslist.

 

My friend sold a phone on Ebay and shipped it signature required by UPS. The buyer left a more on the door for UPS to just drop it off. The driver actually did that and left the package without a signature. The buyer then claimed it was never received and filed a claim for a refund. He followed up with Sprint and they verified that the buyer had activated the phone. Since Ebay will always take the side of a buyer in a case like this there was little he could do. He even contacted the police and they did nothing. 

 

I am not with T-Mobile currently but I like their new plans and their LTE seems to be rolling out quickly. They are definitely worth considering since they have plans that reward people that want unlimited and want to get a discount if they keep their phone longer than a few years and also incentives for frequent updaters. Over 2 years you will not only save a lot of money over AT&T or Verizon but also could upgrade every year. 

post #37 of 51
Quote:
Originally Posted by fallenjt View Post

Whatever. This plan is shady. $120 extra a year losing your phone. No, thanks. I paid $199 for my iPhone and after 2 years, I sold it for over $400, pocket $200 after upgraded with the new iPhone. T-mobile plan: $50/line with unlimited talk text, but 500MB data only. That's enough for streaming some songs and emails...hidden cost people. Be careful.

Then don't sign up for it. Trade-in programs never pay the full retail value of the item. They might be selling these off in bulk at wholesale rates themselves.

post #38 of 51
"Or having to live with a cracked screen...."
Doesn't jibe with
"The program requires that customers trade in an eligible T-Mobile phone in good working condition..."
post #39 of 51
Quote:
Originally Posted by hmm View Post

Then don't sign up for it. Trade-in programs never pay the full retail value of the item. They might be selling these off in bulk at wholesale rates themselves.

I would never do that. Why would anyone bring in a $500 iPhone 4s for an iPhone 5 plus $120/year? Plans are not even better than ATT  Go Plan or 2-year contract. I just wanted to point it out to everyone to be aware of hidden costs and final outcomes. Bottom line, evaluate all options and compare them to your current one before considering to switch. This may not for me but it doesn't meant it's not for others. Good luck everyone.

post #40 of 51
People saying it's a bad deal are correct, if they are trading in an iPhone.

Trading in an Android deal? Maybe a different story. What's the market for used Android devices?
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