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T-Mobile CMO: subsidized pricing hurts wireless competition, undermines hardware value

Joseph Volpe, @jrvolpe
March 11, 2012
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Could an end to unsubsidized smartphones be on its way for US carriers? If T-Mobile's Chief Marketing Officer Cole Brodman had his way, that familiar on-contract pricing would've gone the way of the Dodo a long time ago. Speaking at this week's GeekWire Summit in Seattle, the Magenta exec vented his frustrations with the industry's current business model, citing his belief that low cost handsets not only distort consumers' perspectives, effectively "[devaluing].. the hardware they are using," but also position wireless market players to compete unevenly. When pressed as to why his own network hadn't effected the change, Brodman referenced the lack of cooperation from other major operators, in addition to a market driven by subscribers' purchase habits. As for the fourth place network's glaring iPhone omission, Brodman seemed nonplussed, highlighting the variety of Android and Windows Phones available on its lineup, while asserting his faith in a multi-OS marketplace. While you keep those toes crossed in the hopes of a subsidy-free mobile future, check out the source below for the full panel interview.

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