T-Mobile: The future AT&T
T-Mobile is just behind Sprint, AT&T, and Verizon on the popularity scale. T-Mobile would be on the way to success if it weren’t for all the competition. These different companies desire the money of consumers; however, because competition exists, T-mobile is offering more deals and pricing. The main difference between T-mobile and AT&T, besides the numbers itself, would be the long-term versus short-term contracts.
Consumers aren’t committed as long when choosing T-mobile. This offers the flexibility to look at competitive pricing. This offers a chance for individuals whom have lost their jobs to respond to his/her financial needs.
However, some don’t see T-Mobile as rewarding and valuable. “The company has said its main problems were consumers’ negative perception of its network and its inability to offer customers the iPhone” (New York Times). IPhones are everywhere. Buyers want this specific phone simply because it is useful and it seems as if everyone owns one. T-Mobile doesn’t want buyers to substitute them for Sprint or Verizon. To avoid this, T-Mobile has made a deal with Apple and turned on the LTE network. “Apple iPhone 5 would be available starting April 12 for $100 up front, with customers paying an additional $20 a month for two years. Other new smartphones, like the Samsung Galaxy S 4 and the BlackBerry Z10, will be available with similar payment plans (New York Times). T-Mobile has made advancements due to competition and will make more developments in the future.
According to John Legere, individuals should choose T-Mobile over other companies, because this corporation is straightforward. People would know what to expect; there are no surprises. “Mr. Legere said that over two years, an iPhone on T-Mobile would cost $1,000 less than it would on AT&T” (New York Times). In his mind, there is no question about it; T-Mobile is more sufficient. But, buyers’ self-interest and preferences also matter. It could be easier to be on a long-term plan or there’s the possibility of AT&T having more appropriate prices.
This relates to the Appletown Simulation in class. Just like there were multiple producers, there are varieties of cellular companies to choose from. Consumers, or buyers, decide which company to choose from by looking at prices and self-interest. Naturally a potential customer will examine prices and choose the lower price. Self-interest can change a decision between AT&T and Verizon. Self-interest can change a decision between green apples and red apples or large apples and small apples. Buyers can use the substitution effect anytime. If T-Mobile isn’t going well for a user, especially considering it is short-term, he/she can investigate in an alternative, such as Sprint. If a producer in class was charging too much for a basket of apples, he/she can turn to another producer who has a reasonable price. Anyone can be replaced.
In my opinion, I would want a short-term contract. I would feel more comfortable and secure in case something was to happen with my financial stability and I couldn’t pay for my phone anymore. Corporations try to win people over with the “unlimited texting” or “unlimited minutes”. For me personally, I would need unlimited texting. That is a way a company would buy my interest. The minutes aren’t as important to me, so unlimited minutes with T-Mobile isn’t an advantage or disadvantage. Also, when I was in late-elementary school and middle school, I would buy a new phone almost every two years, sometimes more. A short-term contract would be more beneficial so I could change phones or even companies.