[TXSTYLE]

http://www.fool.com/investing/genera...d-the-sma.aspx

Which company has had the biggest impact on the U.S. smartphone market in the last year? Apple (NASDAQ: AAPL ) ? Samsung (NASDAQOTH: SSNLF ) ? Google? No -- without question, T-Mobile(NYSE: TMUS ) .

The company's "Uncarrier" initiatives have set off a chain reaction within the industry, leading other carriers, notably major rivals AT&T (NYSE: T ) and Verizon (NYSE: VZ ) , to make major changes to their policies. The entire industry is in the midst of a revolution.

Getting more for less
For the telecom giants, profitability may be threatened, as competitive pressures have forced them into more aggressive pricing policies. Last week, for example, Verizon doubled many of its subscribers' monthly data caps for no additional charge.

AT&T has been even more aggressive: Earlier this month it rolled out a new family plan that it touted as being $100 less than a similar family plan from Verizon. AT&T is also offering its subscribers $100 credits for each new line they add, and (though it has since ended the promotion) was offering T-Mobile's customers up to $450 to switch.

T-Mobile, of course, was instrumental in leading the charge, but has intensified its efforts in recent months, particularly with its plan to pay off subscribers' early termination fees if they made the switch.

The end of subsidies
The overarching theme behind T-Mobile's new policies, and one that's been adopted by its competitors, is a move away from smartphone subsidies. T-Mobile dropped them altogether last year, requiring its subscribers to bring over an old handset, purchase a new one outright, or pay for it in monthly installments. AT&T and Verizon still offer subsidies, but they're clearly in the process of getting rid of them.

That new AT&T family plan, for example, does not include subsidies of any kind -- like T-Mobile, any families that elect AT&T's new plan must pay for their own handsets. Likewise, Verizon's new "More Everything" plans that gave existing subscribers more data also made its Edge program more attractive.

Edge is Verizon's alternative to T-Mobile's Jump plan, which lets Verizon subscribers get a new handset more often as long as they're willing to forgo subsidies. Last week, Verizon announced that it was reducing the cost of these plans by $10 or $20 for new customers.

Smartphone-makers like Apple and Samsung have long depended on subsidies to sell their more expensive handsets. Although Apple's iPhone 5S and Samsung's Galaxy S4 cost upwards of $600, most U.S. subscribers pay only a fraction of that cost -- their carriers pay the difference.

But without subsidies that's no longer the case, and subscribers can reduce their monthly bill significantly by choosing a cheaper handset. Intuitively, it would seem that subscribers who elect these plans would pick a less-expensive phone, as they could save themselves a great deal of money over time.

Yet that doesn't appear to be the case -- according to Consumer Intelligence Research Partners, customers who choose these plans actually tend to select more expensive handsets: They favor Apple's iPhone 5s over the 5c, and Samsung's Galaxy S4 over its less expensive alternatives.

Still, the rise of subsidy-free plans could result in longer upgrade cycles, as subscribers on these plans see their monthly bills drop once their handsets are paid off -- a luxury that subsidized handset owners didn't enjoy. Or it could result in more upgrades, as consumers on these plans can buy new handsets more often (assuming they're willing to pay). With subsidized plans still representing the majority of smartphone purchases, this is one trend that's still in its early stages, but could have major effects on the handset-makers over time.

Remaking the industry
At this point, it's overwhelmingly clear that T-Mobile has changed the wireless industry forever, giving consumers more choices and reforming the ways rival carriers do business. While that's great for consumers, that might not be the case for investors -- with competition increasing, the profitability of companies like Verizon and AT&T could be challenged. Even the business of handset makers like Apple and Samsung is thrown into doubt by the loss of subsidies.

The Motley Fool's Sean Williams didn't include T-Mobile's John Legere is his list of the five best CEOs of 2013. In retrospect, I think that was clearly a mistake. Under Legere, T-Mobile has gone from a bottom of the barrel, second-tier provider to the prime mover within the industry.

NICE! Now if only they can get this SPRINT & T-Mobile merger hurried up, it'll be a huge win for customers like myself and consumers in general

[Whostheboss]

I didnt read the article but i can tel you Sprint sucks!

[Red Bread]

Originally Posted by Whostheboss

I didnt read the article but i can tel you Sprint sucks!

That's okay, so does T-Mo. They worked great when I used to work in Germany (no surprise since they're part of Deutsche Telekom) but were terrible in the US, especially in California where I had about a one cubic foot area in my house that I could get reception.

[TXSTYLE]

Originally Posted by Whostheboss

I didnt read the article but i can tel you Sprint sucks!

Reading is Fundamental.

I have zero issues with Sprint and have used them the past couple years. But their 4G service has really improved greatly in my area the past year! And I use tons of bandwidth on a regular. And my corporate plan is lovely. I'd still like to see the merger take place sooner than later for even better results.

[MediaArtist]

Competition is good.

[TXSTYLE]

Originally Posted by MediaArtist

Competition is good.

It certainly is. It always amazes me when consumers even question competition, even if THEY have had issues with said company.

As I've mentioned previously, I am self-employed and have zero to do with the cellular industry. But when small fish cause the big fish to shake or force their hands, we ALL win! Believe that.

Oh... don't forget that just because you or I have spotty coverage with a particular carrier, doesn't mean everyone does. Case in point: T-Mobile has experienced their largest growth in nearly a DECADE this last quarter! That shit ain't no accident: http://www.theverge.com/2014/1/8/528...ter-in-8-years

T-Mobile's bold new strategy is turning the company around. CEO John Legere announced today that Q4 2013 was his company's "best quarter" in eight years, seeing the addition of 1.645 million customers — a dramatic change from having lost 32,000 customers that quarter the prior year. Postpaid saw a one the biggest changes, adding 869,000 customers last quarter compared to losing 515,000 that quarter in 2012.

"4.4 million new customers in 2013"

In total, T-Mobile added 4.4 million new customers in 2013, which the company is largely crediting to its Uncarrier initiative — a combination of network improvements, consumer-friendly changes, and Legere's freewheeling press conferences. With the numbers in, Legere sounds more confident than ever about T-Mobile's ability to change the wireless industry's status quo. "We are either going to take over this whole industry, or these bastards will change and we'll still be wildly successful," Legere says. "I'm going to love watching the peckers scream."

Legere also said that T-Mobile sold 69,000 tablets last quarter. That may not sound like a lot, but Legere says it's sold more tablets in the past month alone than it did over the prior two years — a change that's likely a result of offering a small amount of free data for all tablets. T-Mobile also announced today that it would begin paying for customers' cancellation fees to get them to switch from other carriers, a change that it's certainly hoping will make all of these numbers a lot bigger this time next year.

These types of numbers make investors eyes open and take notice, as well as other potential new customers. And quotes like the above from the CEO means he's not afraid to shake shit up.

[twin fed]

I have been thinking about jumping ship from AT&T to T-Mobile.

[Red Bread]

Yes, competition is great. So are marketing gimmicks that attract new customers. The challenge comes about when you've attracted those customers and you disappoint them. I had TMo for about five years. They weren't as bad as Sprint (any time I have a dropped call to a cell phone, the user whose phone dropped is using Sprint), but they still had substandard service. Since TMo leases their 4g from AT&T, it should be clear that they'll never be any better than AT&T and likely have spottier data coverage, not to mention where I really noticed their weakness, with voice coverage.

I'm all for seeing a German government backed underdog do well against a bunch of independent US companies , but just because they've come up with a way to show short term growth does not indicate a solid reason to invest.

Further, I like my subsidized iPhones. Get a new one for $200 every two years, rest assured that if one breaks in between that I can just walk into any Apple store and they'll happily hand me a new one, further subsidized by AT&T, just to keep me happy.

[TXSTYLE]

In other countries, there are already universally no phone subsidies, no contracts, and no termination fees or anything like that. So the US is/needs to play catchup. Probably (more than likely) the only reason we haven't is Wall Street.

As far as their "quality" goes, unless anyone here works for them or the wireless industry in a technical capacity and knows their upcoming infrastructure plans, I say kudos to em'.
Technology is ever-evolving so I don't go on what happened before. Get a forward minded Chief and throw some $$$ at it, make shit happen.

[pt]

I've been with T-Mo since the '90s (well, Omnipoint -> Voicestream -> T-Mo) and have consistently been happy with them. Two isolated experiments with AT&T and Cingular/AT&T ended badly. Even with paying full price for my phone, I'm still paying slightly less per month than I would with AT&T, Verizon, etc.

This said, Verizon's coverage and network is stronger than T-Mo's by a country mile. Hopefully T-Mo and Sprint make that a top priority if they ever merge.

[Vic311]

No surpise they imply Sprint sucks. They took over Nextel another defunct corp. Remember the walk talkie craze. lol

[RR-NYC]

T-mobile is really pulling out the stops to get people to switch and it's certainly tempting. No international data roaming is huge for me and their plans are so well priced.

Unfortunately their service foot print is still too limited and the lack of real LTE is disappointing. I, like many others, work remotely and need mobile and data connectivity everywhere I go.