T-Mobile recently announced that they’ve reached an agreement with Apple to start selling the iPhone in 2013. Coming on the heels of their iPhone announcement, T-Mobile says they plan to stop subsidizing smartphones in 2013 to give customers more freedom.
All four of the major U.S. carriers offer smartphones at a subsidized price, giving subscribers a discount in exchange for tying them to a two-year contract. The contract helps the carriers retain customers, and the lower price point of the smartphone makes customers happy, but it also ramps up costs and restricts customers from upgrades. T-Mobile says they want to get rid of that system entirely.