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T-Mobile Ditches Cellphone Contracts Entirely

In a landmark move, T-Mobile has gone and gotten rid of contracts entirely. The German-owned carrier, fourth largest in the States, has long struggled to compete with the likes of AT&T and Verizon. By adopting the European carrier model, the company is hoping to entice customers who are afraid of commitment.

The new plans, dubbed "Simple Choice," ensure that everyone on T-Mobile pays month-to-month rather than signing a contract for 1 or 2 years. Customers can now sign up for prepaid monthly rate of $50 for unlimited texting and voice, plus 500MB of data. The price increases to $60 for 2GB and higher or $70 per month for unlimited data. Best of all, you can leave the carrier at any time.

T-Mobile's New "Simple Choice" plans / © T-Mobile


T-Mobile has even thought up a way to compete with carrier subsidies on new phones. Customers have the option of either bringing on their own phone (for free) or buying a new one for a small down payment (around $100) and anywhere from $10 to $20 per month for two years. We're pretty sure you'd pay back the difference if you switched carriers while you're still paying off the phone but – unlike with Verizon or AT&T – you're not stuck with the carrier for the remainder of your contract (because there IS no contract! weeee!)

The new plans are great for smartphone addicts like us because we can finally buy and sell our smartphone as we choose. No longer will we have to stare jealously as all of our friends are playing with the newest Galaxy whatever while we're stuck with last year's model until our contract runs out. The new plan gives consumers more options when it comes to buying smartphones and we think that's a very good thing. 

Source: T-Mobile

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  • T-Mobile's logic is seriously making me reconsider trying them ... but for now? I am happy with MetroPCS (what Contractual Carriers need to do away with is the damn red tape background credit checks - just sign a person up with a contract & stop raping their funds with extra charges to start services) ....