31 May Bad Credit Smartphone Deals Cross the Atlantic
T-Mobile, the German mobile communications giant, wholly owned by the Deutsche Telecom, transfers the UK tested model of “Smartphone Equality” service to the sister company T-Mobile US. The T-Mobile CEO, John Legere, decided, according to Reuters, that it is about time to target new customers in the US with the concept of providing mobile phone plans to sub-prime households. In the US it is estimated that almost two thirds of all Americans have less than stellar credit ratings and that because of this circumstance they are unable to procure decent monthly plans and quality smartphones.
“This has to change”, said Legere, during the T-Mobile launch of the new service, where the new policies have been unveiled. If a customer pays bills on time during a 12 month period, any bad credit rap will be completely ignored and this customer will be able to enjoy same pricing and financing options as the best customers, like a two year plan, with the latest new smartphone in the plan included, with payments for the phone spread out through the whole contract period.
This is applicable to any and all customers, who in the past 12 months did pay their bills in time, T-Mobile will review the payment history and such customers will be offered premium payment plans as an option. The most interesting thing in this story is that most of the other carriers are or will be forced to offer similar plans as well, if they want to stay competitive. According to John Legere, such a development is bringing only positive consequences for all parties involved.
While the necessity of having a modern smartphone may be frowned upon by people who do not have any credit problems, the majority of the population with such worries state that such a smartphone may mean the world for them, allowing them to stay connected in this modern age and be able to compete with people who started out already with a better financial standing. A smartphone is currently viewed as a necessity in the Western world; most companies expect that their employees are available at all times and capable of assisting in business matters as soon as the need arises.
Meanwhile in the UK, the original program providing smartphones for people with bad credit is blossoming and is viewed as the most lucrative business since the smartphone boom back when the first iPhone was introduced. “Such an expansion was only logical, after the success in the UK” stated Legere, commenting that the sales figures do not lie. It remains to be seen how profitable the same model proves to be across the Atlantic. Legere seems optimistic and enthusiastic; the attending public during the presentation seemed impressed and optimistic as well. Only time will tell if this expansion was a stroke of genius or the biggest mistake T-Mobile ever made. Looking at the bottom line and the revenue of T-Mobile, it is safe to assume that this will be another big score for the German giant.