T-mobile, America’s fourth-place wireless carrier, announced today that they are done with contracts. At a press conference today, T-mobile announced it’s new “Simple Choice” plan under which you set up a payment plan for a phone, then pay for a monthly service plan. No contract required. For example, you can get an iPhone 5 for $99 down plus $20 a month for 24 months, on top of the service plan. Presumably, if you go to another carrier inside of those 24 months, you still have to pay off the phone. But, once you own the phone outright, you would just have to pay for your monthly service.
T-Mobile Simple Choice sounds like a good deal to me. I pay a hefty sum to my carrier each month. I think I’d like to have lower payments once I pay off the phone. T-Mobile is rolling out a high-speed LTE network soon, which makes this deal even more attractive. I guess when you’re the number four carrier, you have to take some risks to stand out. I think this is a win-win for T-Mobile and their customers.