Comment Re:exactly the same as Blockbuster (Score 1) 371
It's because they don't want to deal with stand-alone micro-loans. Anytime you take on a debt, you enter a contract. What t-mobile is advertising is no contract for service. agree with rudy_wayne.
Not really. It's because, by offering a 0% loan, they are subsidizing the phone sale with revenue from the service agreement. If you decide you want to back out of your service agreement with them, they allow that but they don't want to continue to subsidize the phone. It is of course a bit of lock-in, but so much less so than others that this should be a non-issue. To be honest, this case just shows that Americans have been so badly treated by their phone companies for so long that they no longer understand common sense when it comes to the difference between purchasing a phone and purchasing a phone service.
Fortunately for me, here in third-world Indonesia there are no service plans, and we can all buy as many phones and SIM cards as we want. Result -- people in cities have two, sometimes three phones, and use them a lot very cheaply. People are generally very satisfied with their phone company. Phone companies keep upgrading their infrastructure, and are quite profitable. I don't know what's wrong over there...