We’ve known that T-Mobile was doing away with two-year phone contracts for quite some time, but exact details haven’t been revealed until today. Unlike the other big U.S. carriers (AT&T, Verizon and Sprint), T-Mobile isn’t doing subsidized, two-year contracts for smartphones anymore. Instead, you pay as you go—and the monthly rates look very good.
T-Mobile is holding a big press event in two days to officially take the wraps off what it’s calling the “Uncarrier” strategy. While unsubsidized plans will give subscribers more flexibility, the tradeoff will likely be higher upfront prices for new smartphone purchases.
Here’s the breakdown of T-Mobile’s no-contract pricing. Each plan comes with unlimited talk, text, and tethering:
- 500MB for $50
- 2.5GB for $60
- Unlimited with only 500MB of included tethering for $70
- 4.5GB for $70
- 6.5GB for $80
- 8.5GB for $90
- 10.5GB for $100
- 12.5GB for $110
The $70 unlimited plan is particularly attractive when you consider that there’s no two-year contract. Data will be throttled when you surpass the threshold for whatever plan you choose, but there won’t be any overage fees.
T-Mobile’s biggest downside is its lack of LTE coverage, but the carrier is working to add a lot of cities this year.
Back in December, T-Mobile announced that it had finally inked a partnership with Apple to sell the iPhone in 2013. Since the iPhone 5 hasn’t been made available yet, it looks like T-Mobile is waiting for Apple to unveil the iPhone 5S later this year.