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Analyst View: T-Mobile's new strategy is amping up existing Un-carrier initiatives

London - 25 June 2015

T-Mobile is planning a series of “Un-carrier Amped” service updates, the first of which is “Jump on Demand,” an enhanced frequent-upgrade programme that builds upon its initial Jump offering to let customers upgrade their smartphones up to three times a year. Unlike the original Jump programme, Jump on Demand – launching June 28 – does not require payment of a US$10 monthly membership fee, and customers don’t have to pay off half a device’s cost prior to upgrading, but it also does not include device protection. Instead, Jump on Demand follows the leasing model to enable a customer to upgrade up to three times a year at no extra cost.

Tammy Parker, senior analyst at Current Analysis, says:

Jump on Demand is T-Mobile's way of getting into the device-leasing business while simultaneously satisfying customers who desire easier, more frequent smartphone upgrades.

The timing is particularly interesting given that Verizon Wireless recently tightened up its Edge device financing and upgrade programme to make customers fully pay off an Edge device before they can upgrade.

Jump on Demand will help T-Mobile differentiate itself from AT&T and Verizon, which don't offer lease options for smartphones, and will put it in direct competition with Sprint in the leased devices segment.

Jump on Demand builds upon T-Mobile’s original Jump early upgrade programme it unveiled two years ago. This highlights the fact that, as T-Mobile depletes its bucket of earthshaking Un-carrier moves, it's taking a look back to identify ways to enhance its earlier efforts to satisfy current market demands.

The "Un-carrier Amped" moniker is an umbrella term for a series of upcoming Un-carrier updates that T-Mobile will use to further cement its image as the wireless market’s rebel and value leader.

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NOTES

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