T-Mobile to Slash Device Promotional Discounts on Select Plans: What You Need to Know
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T-Mobile’s Changing the Game with Segmented Rate Plans
Limiting Device Promotions?
T-Mobile has been offering segmented rate plans that offer a discounted price on mainline plans to specific segments of consumers, such as those 55 and above, First Responders, and Military. However, according to a leaked report, it seems that T-Mobile plans to carve out exclusions on promotional discounts for these segments, offering them a lower discount than the mainline plan’s promo. This could potentially limit their access to device promotions, making it more difficult for them to get the devices they want at a better price.
Mainline Plans vs. Segmented Plans
Carriers have a strong grip over the US market, and companies want you to be on their latest plans. However, they do grandfather older plans and their benefits to honor commercial contracts. This includes reduced promotions on new devices, which is a way to nudge users into leaving them behind. The same strategy could be employed on some of T-Mobile’s segmented rate plans too.
Changes Ahead?
According to leaked documents obtained by The Mobile Report, T-Mobile will soon restrict these "segmented" rate plans from receiving the highest device promotion values. From October 4th onwards, customers on discounted "segmented" rate plans will receive reduced values compared to customers on standard non-discounted plans of the same name. This could impact the number of devices available at lower prices for these segments, making it harder for them to get the devices they want.
Illustrating the Issue
In the leaked image above, exclusions are being carved out in plans for 55 and above, Military, and First Responders. On a Galaxy S24, mainline plans are getting a $800 promotional discount, while segmented plans are only getting a $600 promotional discount. Similarly, the Moto Razr Plus is discounted by $1,000, making it free on mainline plans thanks to promotions, but only $800 off on segmented plans. This segregation could apply not just to this round of promotions but to future promotions as well.
What’s Next?
We’ve reached out to T-Mobile for comments on the above report and information. Since the changes allegedly go live in the next two days, we won’t have to wait too long to find out if the report is correct. Stay tuned for updates on this issue.
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