Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon.
A change to the way trade-ins are accounted for could help lower churn and add net new subscribers to T-Mobile.that gives existing customers a 100% Recurring Device Credit , while new customers use a mixed RDC and Fair Market Value model.
Here's a recurring hypothetical example of what this all means, Let's say an existing customer is taking advantage of a deal in which he trades in his older iPhone model for anwould use a split FMV + RDC. The $1,000 credit would be split into two parts depending on the open market value of the trade-in. Let's say that the phone being used as a trade is worth $250. The existing customer gets $250 applied to his bill while the remaining $750 is applied over a 24-month period . The bottom line is that since the existing customer is paying $41.66 per month for the new phone, with the $31.25 recurring credit, he has to payPro is"Free with trade," the bottom line is that this customer's bill rose $10.41 per month. This model will be used for new customers and if you keep reading, you'll learn why.The new rules, which, as we said, started this month, will use RDCs for all existing customers. With the same hypothetical, existing customers will see their $1,000 split into 24 monthly credits of $41.66, which perfectly cancels out the $41.66 per month cost of the newcustomers will adhere to this 100% RDC method for trade-ins while new customers will use the split Fair Market Value + RDC model that existing subscribers used before this month. It's now more likely that T-Mobile will snag subscribers belonging to rivals and keep its own existing customersPro, and you will lose the remaining $500 in recurring credits. Your out-of-pocket cost will be $500. Under the old method, the customer would have received the $275 bill credit and would lose only the $375 in remaining credits. As a result, moving its existing customers to RDC makes it less likely that these subscribers will leaveOn the other hand, by allowing new subscribers to receive some up-front money in the form of the FMV of their trade-in, it allows new customers to have extra credit to use toward activation fees, down payments, or the first month's bill. This might make it easier for someThink about this. By using FMV + RDC for new customers, it becomes more likely that customers of rival carriers looking to switch towill decide to do so. And by moving to RDC for existing customers, it makes it more likely that these subscribers will stick tohas come up with a plan that allows the carrier to have things go their way. They make it easier for rival's subscribers to jump ship while their own customers don't seem likely to budge. Existing customers who now must go through the T-Life app to do just about anything to their plan or to upgrade their phone, can be switched easily to the new RDC model. New customers, on the other hand, rely on older, legacy billing systems that require a FMV calculation to close the transaction. Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.A discussion is a place, where people can voice their opinion, no matter if it is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some random thoughts, which are not directly related to the matter.Multiple accounts - one person can have only one accountTo help keep our community safe and free from spam, we apply temporary limits to newly created accounts: New accounts created within the last 24 hours may experience restrictions on how frequently they can post or comment.Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a post should be moderated - please, report it.The Verizon outage reveals the end of five-nine network reliability, and it could happen againAndroid 17 might make you think that you need stronger glassesAmazon slashes 36% off Garmin vívoactive 5, turning it into the go-to pick for shoppers on a budgetApple’s AI-powered Safari browser revamp might be arriving later than expected
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