T-Mobile chief marketing officer (CMO) Cole Brodman wants cellular providers to drop the popular subsidies programs that allow customers to buy $500, $600 and even $700 Smartphones for as little as $199 with a two-year contract.
Speaking in a panel chat on Thursday Broadman called for an end to the practice but then admitted that T-Mobile can’t make the jump if the three major US carriers are not willing to join in.
T-Mobile has offered non-subsidized marketing materials in the past however consumers have typically shied away from the high price of cellular devices even when lower monthly phone and data plans are made available to them. According to Brodman:
“It becomes difficult because consumers vote with their pocketbooks, and they will almost always pick a low device price oftentimes over a low rate plan price or a bundled rate plan price.”
While the United States mobile industry has relied on carrier subsidies to attract customers, many Southeast Asian and Europeans purchase their devices and choose carrier plans without the need for a contract. Because of that decision devices are more expensive but carrier plans are often cheaper with most countries support free incoming calls to cellular devices, an option not available from the major US carriers.
In the meantime Brodman emphasized during his panel discussion that their are “fantastic alternate choices” the company can offer outside of the Apple iPhone series which offer better options than the iPhone in many cases.
Here’s a video from the discussion panel:
Would you pay hundreds of additional dollars for your next smartphone if your cellular bill was drastically cut down in price each month?