Shelly Palmer Radio Report – April 1, 2013

T-Mobile recently announced it would no longer force customers into two-year contracts, instead offering monthly plans starting at $50. That price point includes unlimited talking and texting and 500 MB of 4G data and unlimited 2G data after that. For $70 a month, just $20 more, you get unlimited 4G data for a single phone. But no more contracts also means a change in the way T-Mobile subsidizes phone prices. You can get an iPhone from Verizon for $199 instead of $649 because Verizon knows you’re paying them monthly for the next two years. With no contracts, T-Mobile is charging an up-front cost plus a monthly fee to make up the difference. An iPhone 5 on T-Mobile will cost you $99 up front and $20 a month for 24 months, which certainly sounds like a contract to me – nope, you don’t get to keep the phone if you stop paying your monthly bill – compare prices carefully – remember, there’s no free lunch and no free phones!

About Shelly Palmer

Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit



PreviousHere Are All of Google's April Fool's Day Jokes for 2013 NextShelly Palmer Digital Leadership Podcast Episode #30 - Bob Bowman, President and CEO of MLB Advanced Media

Get Briefed Every Day!

Subscribe to my daily newsletter featuring current events and the top stories in technology, media, and marketing.