T-Mobile purportedly removing its postpaid offerings from Target, prepaid will continue on

March 8, 2013
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t-mobile logoAccording to a post put up by TmoNews Thursday evening, T-Mobile has decided to drop its postpaid offerings with Target. Starting April 7, you will no longer be able to find T-Mobile postpaid offerings in any of Target’s stores.

On the other hand, you will be able to find prepaid offerings in all of Target’s locations, so the carrier isn’t dropping Target entirely. T-Mobile needs as much presence out of its own stores as possible, for competition’s sake. Dropping Target entirely would be a very bad business move for the carrier. Postpaid offerings aren’t going away yet though, TmoNews says T-Mobile is “aggressively” looking for another retail partner to house its postpaid offerings.

What is the difference between T-Mobile’s postpaid and prepaid plans?

Now, this really is not a big deal since T-Mobile is looking to become the “uncarrier”. T-Mobile has said numerous times that they’d like to get rid of its postpaid offerings, which is also commonly referred to as a contract. The difference between postpaid offerings and prepaid offerings is that postpaid offerings often come with either a low-end phone or a subsidized smartphone. Postpaid offerings can be broken up into payments.

Prepaid offerings, which is commonly referred to pay-as-you-go, can not be broken up into payments. Prepaid offerings are like a credit. You purchase your own phone in full and then you pay for its service in advance. At that point you will get to use the service until the credit is used up. As you can see, there is a stark difference between postpaid and prepaid. In other words, T-Mobile getting rid of its postpaid plans from Target isn’t a big deal, really.

No doubt we’ll be seeing more of this as T-Mobile looks to become the “uncarrier”. In fact, it would not be very surprising if we saw T-Mobile start dropping some of its postpaid offerings. After all, some of its prepaid plans are getting really cheap.

Image credit: Axel Schwenke/Flickr

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