I'm a relatively new T-Mobile customer that switched over from AT&T several months ago after AT&T tried to pull some shenanigans that effectively tried to increase my bill without increasing my rate plan. While I think it's great that T-Mobile is attempting to go in a different direction, I think the distinction to the average person is hugely oversold. Sure, there's no contract, but you're effectively on one through their new device purchasing model. For the consumer, there is no difference when you initially sign up at T-Mobile vs. any of the other carriers. Your overall monthly bill will also likely be somewhat similar - in my case, to get a basic plan with minimal voice but unlimited text/internet, I end up paying about $10/month when everything is said and done less than I did with AT&T (including device insurance). Still a deal, sure, but that price decrease comes with a hugely noticeable compromise in network quality. The T-Mobile network is great for urban areas, but once you get outside a major city, I just assume that I won't have a data connection. Sometimes I won't have any connection at all. Since I tend to stay in major metro areas this isn't such a big deal, but it can be a pain when traveling far distances on the road. Overall I'm happy with my service, but I think this new direction is only a "game changer" for two kinds of people: 1) People that prefer to buy their devices outright, which results in a heavy up-front cost for the device but a roughly $20/mo "discount" for the actual rate plan for the life of the device 2) People that don't find getting new devices all that important, such that once they pay off the device after the two years, they'll continue to use it to take advantage of the savings they can receive by not having to finance the phone I do hope that, as the article implies, this puts some kind of pressure on the other carriers to come up with more consumer-friendly pricing models. I'm doubtful that'll happen, but we can hope. Regardless, I think there's a lot of unsubstantiated hype around T-Mobile and this new model. It's a step in the right direction, but I just don't think the average consumer is really going to see all that much of a difference.
My wife and I were on Verizon and we recently switched to T-Mobile. I did a lot of comparison and found that for the same price it would cost us to just remain on Verizon with our old phones, we could each get brand new iPhone 5s, more data per month, at about 60 bucks less per month. Plus we weren't locked in a contract. Plus when the phone subsidy is paid off our bill goes down. Plus when we go to Mexico (her sis might be getting married there) they give us international data free without so much as having to call (this was a nightmare when I had to deal with it on Verizon last year). Plus when and if you go over your data limit, T-mobile doesn't smack you down with insane overages, they merely slow your speed down and don't charge you (really slow, but you can still check email). I had my last phone for 3 years, so I expect I will take advantage of the drop in the subsidy price, but we'll see. Verizon still has the best network, but T has been great for me in the state region I live in and the three cities I've traveled to and spent time in since I switched. I lost some signal around the Appalachian Mountains on a drive from Detroit to D.C., but other than that I've not had any issues that have caught my attention. All things being equal T-Mob crushes the competition in my mind, as long as you live in their network area. The other carriers are so consumer-hostile that even if they are a bit better than T-mob, as long as T is getting the job done for me I'll remain with them. I know they are a massive profit-seeking company, but their attitude towards their customers actually matters. I loath the bigger carriers. In the meantime, T-Mobile is cheaper, doesn't lock you in, doesn't charge you for going over your limit, and doesn't charge you a subsidy price when you've paid off your phone. As long as you get coverage from them it's a no-brainer in my book.