T-Mobile Announces iPhone 5 With No Annual Contracts

The iPhone 4, 4S and 5 will be available to T-Mobile customers starting on April 12th. Online pre-orders will open on April 5th through T-Mobile.com. All three iPhone models will be offered contract free for a small down payment. Qualifying customers can nab an iPhone 4 through T-Mobile's new Simple Choice Plan for $15, and pay it off in $15 monthly installments for 24 months. The iPhone 4S will cost $70, and the iPhone 5 will set you back $100. Both the iPhone 4S and 5 will cost $20 per month until they device is paid off in two-years. The $15 and $20 monthly payments will be added on top of any normal data service charges. You can read more about T-Mobile's new no contract service plans here.

UPDATE: The iPhone 4 and 4S will only be available in "select markets".

T-Mobile Uncarrier Event

T-Mobile claims its new "uncarrier" model gives cell phone users more freedom, but customers will have to finish paying for their device if they decided to switch carriers, or upgrade to a newer model. However, customers will be able to keep making monthly payments, or trade-in a device for "fair market credit". All phones will also be sold locked, so people will need T-Mobile's permission if they decided to keep the phone and move to a new carrier.

T-Mobile iPhone to Make First Appearance at Today's Uncarrier Event [Rumor]

The iPhone will play a "prominent role" at today's T-Mobile "Uncarrier" event being held in New York City, according to CNET. T-Mobile is expected to use the iPhone to showcase its new no-contract service plans which were rolled out over the weekend.

T-Mobile Uncarrier

The carrier hopes its new no-subsidy model will attract customers since they can pay for smartphones and data in smaller monthly installments. This will allow customers to avoid restrictive two-year contracts and costly data plans by paying for new devices such as the iPhone 5 themselves. T-Mobile is also expected to roll out its new 4G LTE network on Tuesday.

T-Mobile Announces No Contract Data Plans

Earlier this year T-Mobile announced a plan to offer its customers more flexibility by eliminating cell phone subsidies, and the carrier has followed through by rolling out its no contract data plans over the weekend. Instead of subsidizing cell phones and locking customers into two-year contracts, T-Mobile users can now choose one of several monthly data options. The plans start at $50/month, all the way up to $110 for 12.5GB/month. There is also a $70 unlimited option, and each plan comes with unlimited talk, text, and tethering.

T-Mobile iPhone

The catch is customers will be forced to pay full prices for new phones, but at least there will be an option to do it in installments. For example, you can secure a $400 phone with a small down payment, and make monthly payments until it's paid off. T-Mobile hopes this will be a better and cheaper option for customers than what AT&T, Verizon and Sprint are currently offering.

T-Mobile to Offer Unsubsidized iPhone in 'Three to Four Months'

After announcing that T-Mobile is close to activating nearly 2 million iPhones on its network, Chief Executive John Legere told Reuters, the carrier will start selling the iPhone in about three to four months. T-Mobile also plans to eliminate cellphone subsidies in an effort to offer its customer cheaper plans and more flexibility. Legere promised the Apple experience would be "dramatically different" for T-Mobile subscribers, and believes smartphone users will benefit from avoiding long contracts and restrictive data plans.

T-Mobile CES

T-Mobile hopes the contract free iPhone will convince AT&T and Verizon Wireless customers to switch carriers, and believes its partnership with Apple will increase its market share by 5% or more. All the major U.S. carriers currently offer smartphones at a subsidized price, but customers are forced to agree to long contracts that prohibit them from upgrading their devices. T-Mobile's users will be able to freely exchange or sell their older devices once the subsidies and contracts are out of the picture.

T-Mobile Plans to Stop Subsidizing Smartphones in 2013

With its back against the wall, T-Mobile has decided to shake up the mobile market by putting an end to subsidized smartphones. All four major U.S. carriers offer smartphones at a subsidized price, but customers must agree to long contracts which prohibit them from upgrading their devices. T-Mobile believes ditching the subsidy model favored by AT&T, Sprint and Verizon will appeal to customers who are tired of the restrictions. Chief Executive John Legere said under the new model customers will be able to freely upgrade their devices by trading them in.

No More Subsidized Smartphones

Legere did not say when the carrier plans to rollout its new policy, but promised the Apple experience would be "dramatically different" for T-Mobile customers. T-Mobile also managed to avoid agreeing to the same $15.5 billion iPhone deal Sprint signed up for last year, and the move will help T-Mobile cut back on upfront costs.


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