Last year it was reported that T-Mobile would be ending carrier subsidies, instead asking customers to pay full price for their phones albeit over monthly installments repaid over the duration of their contract. Considering that many customers do rely on carrier subsidies in the US to gain access to high-end smartphones without having to pay full price, naturally this move can be thought of as somewhat risky. However it looks like T-Mobile isn’t alone on this as reports are suggesting that both AT&T and Verizon’s CEOs have expressed their interest in introducing monthly installments as well over subsidies.
According to AT&T’s CEO, Randall Stephenson, “That’s something we’ve looked at on several occasions. I kind of like that idea […] It’s something we’re going to be watching,” while Verizon’s CEO was quoted as saying that the concept is “very intriguing,” but expressed worry that customers might be put off by the idea of having to pay full price for a smartphone. The US is one of several countries around the world where carrier subsidies are pretty heavy, compared to countries such as Singapore or Malaysia where subsidies are marginal and where customers typically end up paying full price for their phones anyway.