Today we have more than one million
unlocked iPhones running on our network. T-Mobile currently offers
microSIMs for customers who already have a GSM phone they want to use on
the T-Mobile network, including an iPhone. In order to set up an
unlocked iPhone on T-Mobile’s network, customers simply need to purchase
a microSIM card and select a T-Mobile Value plan that suits their
needs.
T-Mobile’s Value plans enable customers
who bring their own smartphone, such as the iPhone, to save money. For
example, T-Mobile’s Value family plan with unlimited talk, unlimited text and unlimited data with 2 GB of high-speed data is just $49.99 per line for two lines.
In addition, we will continue to deliver
more value to customers as we expand and modernize our 4G network.
Beginning this year, we will introduce HSPA+ service in our 1900 MHz PCS
spectrum. When we do, our 4G network will be compatible with a broader
range of devices, including the iPhone.
Previously, T-Mobile had basically said they would be re-farming portions of their PCS spectrum mainly to alleviate network congestion. One of the side effects of that was that it would allow the iPhone to acquire a 3G signal (currently, iPhone’s used on T-Mobile are relegated to EDGE speeds for data) where the re-farming had occurred. Aside from that, there were no service guarantees for those who use their unlocked iPhone’s on T-Mobile’s network.
The above statement is now a firmer commitment that T-Mobile is going to make their network an attractive alternative for those with out of contract/unlcoked iPhone’s. This change is a result of the failed attempt by AT&T to acquire T-Mobile (after it was blocked due to anti-trust concerns). During the acquisition talks and the approval process, T-Mobile had agreed to not perform upgrades to their network. After the deal fell through, T-Mobile’s network was woefully behind the competition. Furthermore, their plans for LTE were virtually non existent.
In order to cover lost ground, the company made a key decision to shut down most of its 2G GSM network in order to concentrate on 4G (specifically, LTE). While the other major carriers already have LTE in place, T-Mobile won’t be unveiling theirs until 2013. By focusing on freeing up that part of the spectrum though, it allows them to perform this re-farming of their network to expand their 3G and 4G capacity. It’s a complex process but by taking this route, T-Mobile (which happens to be spectrum poor when compared to AT&T, Verizon, and Sprint) will ironically end up having a higher capacity LTE network than Sprint, an LTE network comparable to AT&T and Verizon, and have a huge HSPA+ network which will be iPhone friendly. In some respects, not being first to LTE may actually end up working to T-Mobile’s advantage. The current issue on the device side are the chipsets and bands. In 2013, Qualcomm will likely have a radio chipset that is more power efficient while supporting a larger number of LTE bands.
T-Mobile plans to re-purpose around two-thirds to three-quarters of its
GSM channels in the PCS bands; this will leave a residual amount of 2G bandwidth for older phones that don’t sport 3G or 4G radios. This freed up capacity would then be turned over to HSPA+, creating a
mobile broadband network on PCS almost as large as the one it currently
runs on its advanced wireless service (AWS) frequencies. This particular re-farming of HSPA+ to
PCS is what is important to current unlocked iPhone users. From the sounds of it, T-Mobile wants to get this done by this year. It makes sense when T-Mobile is bleeding postpaid customers because of their inability to get the best smartphones. Making the network iPhone (HSPA+) friendly will only yield positives in the long term.
Considering there are currently over a million iPhone’s on T-Mobile making do with EDGE speeds, this move will only increase the value proposition of T-Mobile for these folks. I’m one of those using a factory unlocked 4S on an unlimited data
pre-paid plan when I am back in the US. Going with a subsidized device made no sense for me because I’d be paying for service which I wouldn’t be using. The key for T-Mobile though until they actually turn on their LTE network is to attract a large number of those other out of contract AT&T iPhone users who have elected to have their iPhone’s unlocked. As mentioned before, T-Mobile offers the best pre-paid options for those who prefer bringing their own phone. They need to throw these folks a bone as an interim because it is highly unlikely that T-Mobile will be officially selling the iPhone this year. However, it is expected that Apple will push down the non-contract price for the iPhone 3GS, the iPhone 4, and iPhone 4S once the next iPhone is released later this year, providing a wide variety of price points for those looking to bring their own phone. T-Mobile just has to make sure they provide some attractive plans once they have completed the majority of their re-farming work (and don’t worry, the noise about that will grow as T-Mobile begins rolling out these changes).
