T-Mobile’s Contract-Free Plans Explained (Like You Don't Even Know What a Phone Contract Is)

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Let's take that iPhone 5 again. The iPhone 5 will cost $99.99 on the day you buy it, but you will then pay $20 every month for the next 24 months, which comes out to $480. See, over the two-year period you pay for the price of the phone. T-Mobile will offer the same type of deal on other smartphones, including the BlackBerry Z10 and the HTC One. There is also the option to just pay for the phone all at once up front.

T-Mobile says that customers can upgrade their devices at anytime though.

When does this all start?
Right now. T-Mobile is already offering the plans now on its website and in its stores. The iPhone 5 will be available on April 12.

What about current T-Mobile customers?
This is bound to make some mad, but T-Mobile customers with an existing two-year contract are only eligible once their two year contract is up. T-Mobile also says they will keep around some of the contract pricing in select stores.

Oh, and what's up with T-Mobile's LTE coverage?
This all seems useless if they are still going to have slower phones. Good point! T-Mobile is finally starting to roll out its LTE service. It will start in seven major markets, including Baltimore, Houston, Kansas City, Las Vegas, Phoenix, San Jose and Washington, DC. It promises a bigger expansion soon with the goal of hitting 200 million Americans by the end of 2013. It will also start to sell LTE capable devices, starting with the BlackBerry Z10, which is on sale now.

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