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T-Mobile Un-leashes iPhone 5 With Incredible New Pricing and No Annual Contracts
Becomes first major wireless company to eliminate service contracts; debuts 4G LTE network in seven major metropolitan areas

New York, N.Y. — Mar. 26, 2013

Consumers will have a new affordable, unrestricted and hassle-free way to buy an iPhone 5 when T-Mobile USA, Inc. begins offering the revolutionary phone on Friday, April 12.

 

T-Mobile announced today that qualifying customers can get an iPhone 5 for $99.99 down, plus monthly payments. T-Mobile is the only major U.S. wireless company to offer iPhone 5 with no annual service contract plus unlimited talk, text and Web on a screaming-fast nationwide 4G network. And because there are no annual contracts, customers make the decision when to upgrade their devices — not the carrier.

 

“This is an important day for people who love their iPhone but can’t stand the pain other carriers put them through to own one,” said John Legere, president and CEO of T-Mobile USA. “We feel their pain. I’ve felt the pain. So we’re rewriting the rules of wireless to provide a radically simple, affordable iPhone 5 experience — on an extremely powerful network.”

 

iPhone 5 is the thinnest and lightest iPhone ever, completely redesigned to feature a stunning 4-inch Retina display, an Apple-designed A6 chip for blazing fast performance and ultrafast wireless technology1 — all while delivering even better battery life.2 iPhone 5 comes with iOS 6, the world’s most advanced mobile operating system with over 200 new features, including Shared Photo Streams, Facebook integration, all-new Maps app and Passbook organization, and even more Siri features and languages.

 

With compatibility on T-Mobile’s 4G network, iPhone 5 customers will enjoy a consistently outstanding wireless experience, seamlessly connecting to both T-Mobile’s existing nationwide 4G and growing 4G LTE networks. Today, the company launched 4G LTE service in seven major metropolitan areas, including Baltimore; Houston; Kansas City; Las Vegas; Phoenix; San Jose, Calif.; and Washington, D.C. T-Mobile’s 4G LTE network is expected to reach 100 million people by mid-year and 200 million nationwide by the end of 2013. The company’s 4G HSPA+ network reaches 225 million people in 229 metropolitan areas.

 

In addition to a great 4G network experience, T-Mobile offers iPhone 5 customers one of the simplest and most competitive consumer rate plans in the industry. Rather than providing a dizzying number of consumer rate plans, T-Mobile is offering iPhone 5 with just one.

 

T-Mobile’s new Simple Choice Plan starts with a base rate of $50 per month for unlimited talk, text and Web with 500MB of 4G data.3 Consumers can add 2GB of 4G data for $10 per month per line or get unlimited 4G data for an additional $20 per month per line. Customers can add a second phone line for $30 per month, and each additional line is just $10 per month. There are no caps and no overages.

 

Additional Benefits

In addition to the Simple Choice Plan’s reasonable terms and powerful nationwide network, iPhone 5 customers can take advantage of several free premium benefits from T-Mobile, including:

  • HD Voice - delivering nationwide crystal-clear high-definition calling and significantly reduced background noise. T-Mobile is the only U.S. carrier offering nationwide HD Voice for iPhone 5.
  • T-Mobile Smartphone Mobile HotSpot for on-the-go tethering Internet access. Through Simple Choice, T-Mobile offers an additional 500MB of 4G data for tethering, enabling customers to tether from their iPads, Macs and other devices.
  • Talk and surf at the same time — without limits. Through T-Mobile's Simple Choice Plan, customers can opt for totally unlimited 4G data on a nationwide network, something no other major U.S. wireless company offers for iPhone 5.

 

Pricing & Availability

iPhone 5 will be available for qualifying customers with T-Mobile’s Simple Choice Plan for $99.99 down and $20 per month for 24 months. Qualifying customers can get iPhone 4S through the Simple Choice Plan for $69.99 down and $20 per month for 24 months. iPhone 4 will be available for qualifying customers through the Simple Choice Plan for $14.99 down and $15 per month for 24 months. Financing is available on approval of credit online and in participating locations. iPhone 4S and iPhone 4 will be available in select markets. iPhone 5 will be available nationwide on Friday, April 12, at T-Mobile retail stores and through select dealers and national retail stores, as well as online at http://www.T-Mobile.com. Customers can pre-order iPhone 5 beginning Friday, April 5. For more information, visit the pre-registration page.

 

1  Network speeds are dependent on carrier networks, check with your carrier for details.

2 Battery life depends on device settings, usage and other factors. Actual results vary.

3 4G network connection required for 4G speeds; all data use applies to allotment. Once rate plan allotment of high-speed data has been consumed, customers will experience reduced Web speeds without overage charges for the remainder of the billing cycle. Unlimited 4G data is available for an additional $20 per month.


About T-Mobile USA Inc.

Based in Bellevue, Wash., T-Mobile USA, Inc. is the U.S. wireless operation of Deutsche Telekom AG (XETRA: DTE; OTCQX: DTEGY).  By the end of the fourth quarter of 2012, approximately 132.3 million mobile customers were served by the mobile communication segments of the Deutsche Telekom group — 33.4 million by T-Mobile USA — all via a common technology platform based on GSM and UMTS and additionally HSPA+ 21/HSPA+ 42. T-Mobile USA’s innovative wireless products and services help empower people to connect to those who matter most. 

 

For more information, please visit http://www.T-Mobile.com. T-Mobile is a federally registered trademark of Deutsche Telekom AG. For further information on Deutsche Telekom, please visit www.telekom.de/investor-relations.

 

Forward-Looking Statements: 

This press release contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements may include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.

 

In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.


Media Relations
T-Mobile USA
425-383-4002

mediarelations@t-mobile.com