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T-Mobile’s No-Contract Plans Finally Here, Prices Very Competitive

T-Mobile has officially become the first carrier in the US to drop its two-year contract service and instead introduced ‘UNcarrier’ plans, all of which are based on the pay-as-you-go plans by default.  From the company’s announcement, we know that their Samsung Galaxy SIII will no longer go for $129 with a two year contract; instead, buyers will now part with about $550 for the phone.  They can pay a one-time fee of $549 or the can choose to make a down payment of $60 and monthly payments of $20 for 24 months.

T-Mobile UNcarrier Plans

Buyers will get defaulted into an ‘unlimited’ plan that comes with unlimited talk time and texts and 500MB of data for just $50 a month.  The data speeds are throttled to 2G speeds once the user reaches the 500MB and the prices will increase in 2GB increments all the way to 12GB, with each 2GB increment costing an additional $10 a month.  This plan includes hotspot and tethering prices.  A truly unlimited plan though is one that comes with no data speeds throttling, unlimited talk time and unlimited texts for $70.  You can further purchase 2GB tethering for an extra $10 a month or 4GB for $20.

T-Mo has also scrapped family plans in their newest pricing structure.  However, you can include additional lines for $30 a month although the company is now running a promotion where you can add the additional lines at no charge.  Each line added comes with unlimited text and talk time but will use their own data plans.  This is what separates other lines even within the same price tiers.

Perhaps the best news about the company’s new pricing structure is that there will be no more handset subsidies.  Although buyers will not be paying the full price for the handset upfront unless they want to.  Instead, they will part with a down payment and pay a certain amount per month for up to 24 months.  There are different down payment prices for each devices and they average $99 and a monthly payment that ranges between $15 and $25.  T-Mobile has said that they do not charge interest on the cost of the handset which is very good news for those who plan to get a phone from the carrier.

What do you think of the new pricing structure from T-Mobile?  Is it a major move away from contract plans or is it a misguided move that may cost them clients and eventually income?  Will or would you go for one of their new plans?  Share your views in the comments section below.

Sources: T-Mobile and

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