T-Mobile partners with Apple to offer free week-long iPhone 5s 'test drive' to nab potential custome
Ahead of T-Mobile's "Un-Carrier 5.0" event on Wednesday, CEO John Legere said his company is partnering with Apple to give potential customers a free iPhone 5s with unlimited data to "test drive" on its network for one week.
T-Mobile CEO John Legere at the Un-Carrier 5.0 event. | Source: T-Mobile
In an interview with Re/code, Legere outlined the "7-night stand" program, saying users simply sign up online, use the phone for a week and return it to a any T-Mobile store once the trial period is over. The company plans to have the initiative up and running next week.
"You (can) have a 7-night stand," Legere said. "You cheat on your carrier and it's free."
The T-Mobile chief estimates more than one million people will take advantage of the offer within the first year of availability. According to the publication, Apple is supplying "tens of thousands" of iPhone 5s units to the carrier as part of the partnership.
Additionally, when Apple releases the next iPhone, T-Mobile will upgrade the offer to whatever the latest models handset is available.
Those interested in taking up T-Mobile on its 7-night stand offer can visit t-mobile.com/testdrive on the company's website starting June 23. The sign-up process requires a valid credit card before the unit ships and potential customers are allowed one test drive period per year.
T-Mobile CEO John Legere at the Un-Carrier 5.0 event. | Source: T-Mobile
In an interview with Re/code, Legere outlined the "7-night stand" program, saying users simply sign up online, use the phone for a week and return it to a any T-Mobile store once the trial period is over. The company plans to have the initiative up and running next week.
"You (can) have a 7-night stand," Legere said. "You cheat on your carrier and it's free."
The T-Mobile chief estimates more than one million people will take advantage of the offer within the first year of availability. According to the publication, Apple is supplying "tens of thousands" of iPhone 5s units to the carrier as part of the partnership.
Additionally, when Apple releases the next iPhone, T-Mobile will upgrade the offer to whatever the latest models handset is available.
Those interested in taking up T-Mobile on its 7-night stand offer can visit t-mobile.com/testdrive on the company's website starting June 23. The sign-up process requires a valid credit card before the unit ships and potential customers are allowed one test drive period per year.
Comments
Can, but how many will? T-Mobile just created a job market for thousands of muscular "repo" men.
Uh, a credit or debit card is necessary for the test drive. Just like a rental car.
Here's the exact language from the T-Mobile site:
Do I neet a credit card to participate?
"Yes, to ensure the devices are returned, we’ll hold a credit or debit card that will be charged if the device is not returned. The credit card is the only method we are setting up to handle these charges, we will not have a system for accepting cash, checks or any other form of payment/deposit. However, if the device is returned damaged, the Test Drive participant can pay the damage fee in store using any form of payment they wish."
You don't return on time, you pay for the device. The card on file also can be charged for any damages incurred.
Uh, most likely a credit card and government-issued ID would be necessary for the test drive. Just like a rental car.
You don't return on time, you pay for the device.
Yes, CC will put a hold for up to 14 days for X amount.. and customer is on hook even if card is canceled since it happened prior.. So even though T-Mo isn't charging right away, they are 'reserving' the amount...
It's not as big of a risk as you'd think..
i've already ported one number away from my at&t family account to another carrier so that line is able to take advantage of better coverage in the area it's used, and for better pricing for better service.
i'm waiting until the 3rd or 4th of july -- the end of my billing cycle -- to port my remaining two numbers to t-mobile. i'll do the test drive for a few days just to see if there are any negatives ... but unless the thing burns down my house i can't imagine it'll influence me to not want to move to t-mobile. at&t is a horrible company. t-mobile is probably not far behind, but at least they're not at&t (or comcast.)
what would also be great is if they just offered a sim; i have an unlocked phone.
I'm on AT&T & quite satisfied overall (as satisfied as you can be knowing everyone in America is getting screwed on their mobile plan) but this would give me the opportunity to check out TM's coverage where I work and live.
I'm betting most people taking a test drive will switch.
Comcast as a mobile phone company... the thought is too horrible to contemplate.
You'd have go to their store, but the doors would all be locked, so they'd expect you to wait there for a salesman to arrive sometime between 1 and 6PM.
If their network is up to the task, it's a pretty smart move.
I'm on AT&T & quite satisfied overall (as satisfied as you can be knowing everyone in America is getting screwed on their mobile plan) but this would give me the opportunity to check out TM's coverage where I work and live.
I'm betting most people taking a test drive will switch.
It is a good idea because it gives people a chance to test the T-Mobile network performance with no strings attached.
I've used both the AT&T and T-Mobile networks as a direct customer (prepaid service) and have used MVNOs running off of both networks.
Without a doubt, AT&T has a wider coverage area, but if you spend most of your time in dense metropolitan areas, T-Mobile's LTE and 4G HSPA+ service is typically faster than AT&T's. The problem with T-Mobile are localized spots with poor coverage. Even if you get great LTE service two blocks away from your house, it doesn't help you when you are home. This trial program gives people the opportunity to figure out if T-Mobile's network is "good enough" for the places where they normally find themselves using a phone.
Despite the gaps in T-Mobile's coverage, it works for me in the places where I find myself most frequently. Plus, I'm only shelling out $30/month (taxes/surchages included) with the old 4G Monthly prepaid plan: 100 min. voice, unlimited text, unlimited data (5GB at 4G/LTE speeds). No AT&T plan comes close.
They put a hold on your CC for the amount of the device.
Nice opportunity to upgrade existing T-Mobile customers too. Legere also pitched the test drive as an opportunity for people using older or competing devices on T-Mobile's network to try the "latest and greatest" iPhone, currently the 5s. They seemed to hint that this test drive program will move over to the newer iPhone model when it comes out. Apparently, Apple is providing the test drive phones to T-Mobile for free.
Very smart all the way around, because it removes yet another barrier to switching carriers, while also removing a barrier to switching smartphones. No service sign-up, no device activation, no restocking fees, etc. They send you a phone to try out, and at the end of the test period, you return it to a local T-Mobile store. Nothing other than a credit card preauthorization (as someone said, no different than renting a car).
T-Mobile's biggest liability has been their network coverage, or at least the perception of their network. This at least gives T-Mobile the opportunity to let the customer try the network for themselves to see if things have improved in their area, without having to commit anything up front.
Legere said that among the major carriers, T-Mobile has the lowest iPhone penetration and its customers have the lowest awareness that the iPhone is available on their network. So, this is also a huge opportunity for Apple to make inroads with a rapidly growing carrier that has a large untapped customer base.
Oh and one of the questions during the Q&A was why does the test drive exclude Samsung and Android?
Legere said that they approached Apple with the idea, and Apple said yes. Apple and T-Mobile both also saw a need to increase the iPhone's market penetration on T-Mobile's network, so that's the other reason why the test drive program only includes Apple for the time being.
Knowing the myopic tech press (which Legere seems to enjoy picking on), their headlines tomorrow will be:
T-Mobile CEO to Android Users: DROP DEAD! or
Apple Resorts to Handing Out FREE iPhones as T-Mobile Customers Stay Away in Droves! or
T-Mobile Screws Samsung by Taking Apple Bribes! or
T-Mobile Hates Its Customers: New Test Drive Excludes The WORLD'S FAVORITE MOBILE OS!
This gives a bunch of Android users the opportunity to try out the iPhone and see if they like it enough to switch. A great marketing plan by Apple.
I noticed VW only ran this promotion once. I wonder why they dropped it.
Can, but how many will? T-Mobile just created a job market for thousands of muscular "repo" men.
I've never had good luck with T-Mobile. Used them for 2 contracts...never again. The issue is, they have crap for coverage unless you live in a big city. Here, they're still only on 2G for data when everyone else is on LTE.
There are some major differences between. One, an iPhone costs a lot less than a Jetta and the user still has to pony up the price of the device for the Test Drive. Two, this test is about the T-Mobile network not the iPhone.
At least he knows he's out of his mind. Self awareness is an important step.
What are you implying? I'm not crazy! Who said I'm crazy?
He' passionate, which I like, but I also like a more balanced and longterm approach to business. That's a big reason I like what Tim Cook is doing.
"Oops I lost my credit card. Please issue me a new one"