Tech Analyst Jeff Kagan on T-Mobile Innovative “JUMP” Plan
Atlanta, GA (PRWEB) July 14, 2013 -- T-Mobile introduced their “JUMP” plan, which allows users to upgrade their actual handset up to twice every year for $10 per month according to an article by Edward C. Baig of USA Today, July 10.
Wireless analyst Jeff Kagan offers comment.
“While many customers are happy using the same device for several years, others always wish they could regularly get their hands on the next newest and cool device. That is the group T-Mobile seems to be aiming at with this new offer called Jump,” says Principal analyst Jeff Kagan.
When you sign up for this T-Mobile feature called Jump, short for Just Upgrade My Phone, and pay $10 per month, you can upgrade your phone up to twice every year.
“This new approach could help T-Mobile in their recovery to hang on to a segment of their customer base. They also need several other similar steps which focus on different segements of their customers base, but this seems like a good start,” says Industry Analyst Jeff Kagan.
T-Mobile CEO John Legere says it’s crazy that wireless providers lock customers into a two-year waiting period before they can upgrade their phones. “On one hand this is correct, but on the other hand, every major competitor like AT&T, Verizon, Sprint, C Spire, US Cellular and others are still successfully using this existing model and are still growing,” according to Kagan.
Legere asks, "Why is this two-year contract good for me? We are going to refine a stupid, broken, arrogant industry." Legere also recently gave T-Mobile a new pet name, the “Uncarrier.”
“While I applaud Legere’s bold position, I think the reason T-Mobile is moving toward changing the existing model is to recover from a major mis-step several years back, before Legere, when they missed the shift to 3G and the smartphone revolution. I think this is T-Mobile’s next step trying to recover. Looking at T-Mobile through this lense, Jump seems to make perfect sense. They are trying to upset the apple cart and trying to lead a new revolution in a rapidly growing wireless industry,” says Kagan.
“I don’t see T-Mobile changing the marketplace because existing competitors are still rapidly growing, but they may be successful at reigniting their own success. We are now also expecting to see some fireworks from the just completed Sprint Softbank deal. So there will be plenty to keep our eyes on in the industry in coming quarters,” says Kagan.
“Will T-Mobile be successful? I hope so. The marketplace needs strong competitors including. The industry is now starting another wave of consolidation. What role will T-Mobile play? Will they acquire smaller competitors, or will they be acquired? Will they transform the entire industry like they want with their new plans, or will they only change T-Mobile? Either way I think we have much more as we continue to watch T-Mobile going foward,” says Kagan.
About Jeff Kagan
Jeff Kagan is a Technology Industry Analyst and consultant who is regularly quoted by the media over 25 years. He offers comment on wireless, telecom and tech news stories to reporters and journalists.
He is also known as a Tech Analyst, Wireless Analyst, Telecom Analyst and Principal Analyst depending on the focus of the story.
He follows wireless, telecom, Internet, cable television and IPTV. He also follows the wide consumer electronics and technology space.
Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.
Clients: Call or email Jeff Kagan to discuss becoming a client. Kagan has worked with many companies over 25 years as consulting clients.
Contact: Jeff Kagan by email at jeff(at)jeffKAGAN(dot)com or by phone at 770-579-5810.
Visit his website: at jeffKAGAN.com to learn more and for disclosures.
Kagan is an analyst, consultant, columnist and speaker.
Twitter: @jeffkagan
Jeff Kagan, Tech Analyst, Industry Analyst, Jeff Kagan, Tech Anaylyst, http://www.jeffKAGAN.com, 770-579-5810, [email protected]
Share this article