U.S. network carrier T-Mobile is willing to create a secondary market in used or older versions of the iPhone as soon as the new phone is launched by Apple Inc.(NASDAQ:AAPL).
Incidentally T-Mobile is the only one among the top four network operators in the country that doesn’t sell the iPhone. Apple is expected to launch its new phone on Wednesday.
"We expect that consumers will start trading in older devices," said Harry Thomas, T-Mobile's director of marketing. "For every person waiting in line for the next model, a lot of them have to find a secondary market for that older device."
The company said that iPhone users who are under contract with AT&T Inc.(NYSE:T) and whose contract has expired can sign up with T-Mobile which is willing to offer them fresh contracts.
T-Mobile typically offers lower data speeds on its network compared to its rivals with files taking 50 times longer to download compared to speeds on AT&T's network.
But a restructuring and reshuffling of its frequencies on its network this year has improved data download speeds for the company and it is all set to cash in on this.
Phones that are offered under contract with a network are usually locked (into that network) and have to be unlocked using codes and AT&T will have to supply that code once its contract with the customer expires.
Interestingly iPhones sold by Sprint Nextel Corporation(NYSE:S) and Verizon Communications Inc.(NYSE:VZ) will not work with T-Mobile's network while the iPhone 4S will work only if it is hacked into, something that the company may not be willing to consider.
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