T-Mobile unveils pay-as-you-go Android phone

T-Mobile's Pulse (click for full slideshow)

(Credit: ZDNet UK)

T-Mobile has demonstrated the first pay-as-you-go Android handset to go on sale in the UK.

The Pulse, which is manufactured by Huawei, was announced on Thursday. Huawei is best known in the UK for manufacturing mobile broadband dongles for operators such as T-Mobile, and the Pulse marks its entry into the British handset market.

"The T-Mobile Pulse represents another Android milestone from T-Mobile," said Nicola Shenton, who currently heads the operator's handset business in the UK, in a statement. "We introduced the first Android handset, the T-Mobile G1, to the UK back in October 2008, launched our second handset, the G2 Touch, earlier this year and now we're opening up Android-based smartphones to a whole new type of mobile user with the first handset on pay-as-you-go."

"We predicted back in June that we expected one in five T-Mobile mobile internet users will have Android-powered devices by the end of the year, and the launch of the T-Mobile Pulse is a major step in making this a reality," she added.

The pay-as-you-go T-Mobile Pulse will go on sale in the UK in October at ?180. Contract pricing is yet to be announced.

David Meyer of ZDNet UK reported from London.

[victorj]

I know I'm in the minority here, but I think this is a move in the right direction. There's lots of people for whom the iPhone and its associated data plan is too pricey. There's other people who can't switch phones because they're mid-contract, so they're stuck. With the pay as you go option, most of the hassles are avoided. With pay as you go, you can upgrade phones whenever you want. You can pick and choose which data services you use. Most of the time, the data plans I've seen for pre-paid phones (Boost mobile, Virgin mobile) have been much cheaper than a contract phone. Add to this that you usually don't have to pay taxes and service fees. I know with Virgin Mobile if I put $20 on a phone for a month, all $20 of that goes for minutes or data, nothing to taxes or surcharges.

The downside to this is that upgrading a phone will probably cost more on prepaid because there's no carrier subsidy. However, to get out of the contract cycle, and into a really decent smartphone, I think some people (maybe lots) will take the plunge. Here's hoping this comes to the US.

[gerrrg]

I don't think you're in the minority position. T-Mo has seen post-paid contracts moving to pre-paid.

[cayhorstmann]

+1. Pay as you go is a lot better than a 2 year "commitment", i.e. hostage situation. As for the carrier subsidy, I am not so sure that this is really an advantage for the consumer. If you pay $2000 for a 2 year iPhone contract, who is paying for that subsidy?

[zyxxy]

I have been using T-Mobile pre-pay in the US for three years, and I am quite happy with it. It would be interesting to see how their data plan shapes up. Will this phone make it to the US?

[badasscat]

Contract pricing is yet to be announced? Is this not an oxymoron for a pay-as-you-go phone?

[zyxxy]

The phone is available both as pre-pay (you buy the phone outright) or subsidized with a two year contract. Two different plans with two different payment schedules. Not an oxymoron.

[rdupuy11]

The idea that you save money because of a carrier subsidy, is not something I can agree with.

The carrier isn't taking a loss, they provide the illusion of a cheaper phone, but its an illusion only.
If you pay $99 for an iPhone and a sign a contract for $2400....you didn't pay $99 for the phone...you just buried its true cost in the contract plan.

Its just not a cheaper phone at all, if you consider the contract.

If we can compartmentalize our thinking like that, why can't I, buying a phone for $300, and (I'm in the U.S.) buy a $100 prepaid phone card per year...spending only $200 on airtime for two years...just declare that my phone was free, and that the $300 was a contract avoidance fee.

Now my phone is cheaper than yours....my overall costs, even including the contract-avoidance fee, is cheaper than yours.

Gosh, why not.... whats good for the goose, is good for the gander.

[tsi26]

I'm been doing this for 2 years now with my hacked 1st gen iphone on T-Mo. : ) My total cost last year for my cell use was $150. But, I was lucky enough to receive the iphone for free.

[RompStar_420]

I have a friends who works at T-Mobiles, he is a Router Guru, and for example. When you see those billboards that say, unlimited everything plan $50, like the Boost offer, they are taking a loss, that company makes no money, they simply want to get as much customers base as possible and then be bought out by someone, those companies don't own the wire or the cell towers, they have to lease that from either AT&T or Verizon, they own majority of all the towers.

[opiapr]

Actually Boost and now Virgin Mobile are owned by Sprint and tier service run on Sprint network (which sprint owns) and actually more traditional carriers want to expand to pre-paid because their is money to be made.

[Dan7637]

i would buy this just if it was able to be unlocked because im going on a trip to europe and i want to be able to make a call home

[EvanSei]

I use t-mobile pay as you go and if this comes out in the u.s. I will be getting it, mainly because the iPhone doesn't work well with pay as you go