Because of its new $99 iPhone 5 "no contract" deal, T-Mobile seems to be shaking things up for Verizon. Lowell McAdam Verizon's CEO announced at an event Thursday, Verizon may also get rid of its contracts... well eventually. McAdam's says that if consumers demand it, Verizon will respond to consumers requests. "We can react quickly to consumers' shifting needs," McAdam said.
According to the New York Times, David Pogue says cell phone contracts are a "rip off," and customers who stay with Verizon over two years end up pay more than $960. Other sources feel T-Mobile’s deal won't really be saving customers much money if compared to Verizon’s or AT&T’s plans.
If there is one thing we all have in common, it’s that we don't like overpaying for cell phone plans and feeling locked in to a two year agreement. If a company is trying to meet consumers half way by saving them money and offering no contracts, in time customers may favor the deal. T-Mobile's strategy should make it easier for those who are struggling in this economy.
John Legere T-Mobile CEO says, "If we suck this month, drop us. Go somewhere else."