T-Mobile is set to announce two big changes to the T-Mobile network and catalogue tomorrow: the long-awaited T-Mobile iPhone, and also that they are doing away with the standard two-year contract required to get a good discount on a new phone.
Instead, says T-Mobile, customers who purchase a new phone from T-Mobile can pay off the phone directly, over time, with an installment plan. This seems to be an effort to be more honest and transparent about what you are paying for when you concurrently purchase a new phone and also sign up for a cell and data plan.
For example, says USA Today, if you purchase a new Samsung Galaxy S III from T-Mobile, instead of getting it free and being locked into a pricey two-year contract, you will pay an upfront fee of $70.00. Then, on top of the voice and data plan you choose, you will pay an additional $20.00/month to be applied to the price of the phone, until the phone is paid off. Once the phone is paid off, the $20.00 per month will go away, leaving just the regular cost of the voice and data plan.
Some phones can be had for as little as $29.99 down and $16.00 per month.
It is also highly anticipated that T-Mobile will announce a T-Mobile iPhone tomorrow. If this is the case, that means that customers will be able to buy an iPhone without being locked in to a hellatiously expensive two-year contract to get it, while still not having to pay an arm and a leg up front for the phone.