[citation][nom]santiagoanders[/nom]How can you be bound for 2 years of service without a contract? The contract is what binds you.[/citation]
You still sign a contract....it just doesn't bind you to their service for 2 years anymore. When you buy a new phone, instead of subsidized pricing, they finance the phone for 2 years. The cost of the phone is divided by 24 and that is added to your monthly bill for 24 months. If you decide to leave T-Mo, you're responsible for the remaining balance of the phone price. That is what you're signing a contract for. Instead of a 2-yr service contract, you're signing a 2-yr financing contract.
[citation][nom]dalethepcman[/nom]I think this is a great move for TMO customers. I think $70 for unlimited 4g, talk and text is a pretty good deal in the US (especially if you get tethering.) Too many people think an iphone costs $200, and their cell service costs $120/month, hopefully this will show some of them the real costs of an AT&T iphone.I just hope they reduce the length of the phone payment plan to correctly reflect the price of the phone.[/citation]
T-Mobile takes the price of the phone, divides it by 24 and adds the value to the monthly fee. You're actually paying the retail price of the phone, but you're paying it over 24 months.....instead of what AT&T, Verizon and Sprint do....which is claim to give you a phone at X price while actually raping you for 2-4 times what the phone actually costs.
I got a BBZ10.... I paid $100+tax up front (the tax is applied to the total price, not the down payment, so I paid $26.60 in tax). I'm paying $18/month for 24 months, equaling the remaining $432 (retail is $532). It's actually a pretty good deal if you can't afford to shell out $300+ on the latest smartphones in 1 shot. They don't charge you interest either.