T-Mobile is ending its confining two-year contracts and opting to offer customer a plan somewhere between its no-contract, prepaid plans and the two-year contract in hopes of getting the edge on the bigger phone carriers, AT&T and Verizon.
The T-Mobile website is already promoting the new plan, stating: "Unlimited Nationwide 4G Data. No Caps. No Coverages. Now With No Annual Contract."
Customers can expect to pay full price, or nearly the full price, for their phones, instead of sometimes getting hundreds off their phone price when signing a two-year contract. But on the upside, those who choose the new T-Mobile plan have lower monthly fees, meaning customers would save money in the long run.
T-Mobile, the fourth largest cellphone company in the U.S., is expected to give more details about its new phone plan at an event Tuesday in New York. Although T-Mobile doesn't offer iPhones at the moment, insiders say that it could offer a timeline for when it will start selling them.
On its website, T-Mobile is offering customers a Samsung Galaxy S III – 16GB for $69.99 on the day of purchase as down payment, and then $90 each month for 24 months. So the customer can pay in installation over time, or they can pay in full $549.99 on the day of purchase for unlimited calling, text and data. T-Mobile breaks it down as $69.99 + $20 additional/month. The $20 is the payment for the phone itself broken over 2 years. The customer stops paying $20, and only is responsible for the $70, once they complete paying for the cost of the phone.
T-Mobile is the only cellphone carrier among the big 4 that doesn't sell iPhone. But the company had said earlier this year that it would start selling the iPhone this Spring, although a set date has not been given.