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[eyecre8]

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In a move that opposes current trends to implement bandwith and data transfer caps T-Mobile USA hopes to rock the wireless industry today with detailed plans to sell phones on an unsubsidized basis with no-contract, unlimited data plans.

What's the catch? In a sense you could say that there is a catch. T-Mobile is no longer "subsidizing" cell phones for service. Smartphones are expensive. Some of the newer models cost between $600 and $700 at full retail price. Traditionally, wireless subscribers in the U.S. have asked customers to pay a fraction of that cost. Typically, the price is about $200. The carrier pays the rest of the cost of the phone in exchange for a 2 year contract. T-Mobile is getting rid of the contract and the subsidy. This means that customers will have to pay the full price for their phones.

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What if you can't afford the cost of a new phone? T-Mobile is offering a financing plan. For example, T-Mobile is offering the 16GB Version of the Samsung Galaxy S3 for $549.99 if you pay at once. But if you can't afford that, you can put $69.99 down and pay an additional $20 per month on top of your service plan every month for 24 months. At the end of the 24 months, you own the phone outright.

This kind of sounds a lot like a contract/subsidy plan. What's the difference?
The big difference is that after you pay off the phone, your overall monthly bill goes down. It's just like when you finish paying off a car or the mortgage on your home. Once the loan is paid off, you own the device outright and you can continue to use it. And because it's paid off, your monthly bill will go down by up to $20 a month.

In a typical contract/subsidy model at the end of a two-year contract, the phone is likely paid for in full. As such, you are no longer bound to an early termination fee. However, your monthly service is not reduced to reflect that the cost of the phone has been paid.

For any service plan you select, you will not have to commit to using the service for a set length of time. Provided that you've paid off any new device that you buy you can end your service at any time without penalty. Also, all plans include the carrier's Smartphone Mobile HotSpot feature for device tethering.

T-Mobile is also expected to discuss some information about its nationwide LTE network at its event today. In February, the company confirmed that both Las Vegas and Kansas City had LTE built-out but their network was commercially available as of last week.

T-Mobile is expected to talk more about its new no-contract plans and provide an update on its 4G LTE plans in 10 minutes.
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[Thach]

Now if they would improve on their coverage areas they would be onto something. North Dakota is normally a state that people can't locate on a map and apparently most cell phone companies short of Verizon fall into that category.

[aktrazer]

I'm with Thach on this one. Unlimited no contract is an awesome offering. If they just get their coverage and LTE network expanded, I think they'll be in a very good position to take on the "heavy hitter" carriers like VZW and ATT.

[eyecre8]

I had T-Mobile back in the day. I stayed within a limited location space which had decent coverage so I can't comment intelligently on the coverage issue. I can say that they had great customer service and their reps would bend over backwards to see me happy which is 100% opposite of each and every experience I have ever had with AT&T. I've never been so stressed out in my life with customer service as I have on several occasions with AT&T.
Not to mention, I'm completely fed up with these lock-in contracts and early termination fee's.
It will be a nice change to be contract-less, although, I think the prices being charged for non-subsidized cell phones is a bit over priced. I'm betting they will come down over the next few years.

[robocuff]

Now if they would improve on their coverage areas they would be onto something. North Dakota is normally a state that people can't locate on a map and apparently most cell phone companies short of Verizon fall into that category.

I know what you mean. I'm in far western MN (about 180 miles straight south of you ) The boat you're in is a large one because I'm in the same one. Here it's VZW or nothing. Wish these other companies would move into this part of the country. I'd drop VZW in a heartbeat if I had the opportunity.