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Report: T-Mobile Set to End Phone Contracts

By - Source: TmoNews | B 14 comments

Two-year contracts and early termination fees to be discontinued.

Wireless carrier T-Mobile is purportedly preparing to end phone contracts in an effort to better compete with its competitors.

According to an internal memo obtained by TmoNews, T-Mobile could announce its "uncarrier" plans during March. The decision would remove two-year contracts, early termination fees and traditional phone subsidies, consequently allowing customers to purchase new devices via a monthly installment plan.

The memo in question also apparently reveals that T-Mobile intends to market its HSPA+ and forthcoming LTE network as "dual 4G" technology amid its merger with MetroPCS. The re-branding initiative is due to commence on March 24.

Back in December, T-Mobile CEO John Legere discussed alternative options to compete with Verizon and AT&T. He said during Deutsche Telekom’s annual investor conference that "we think there is a huge room for a carrier to change in a way that the larger players will choose to or will not be able to respond to."

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Top Comments
  • 12 Hide
    goodguy713 , March 4, 2013 3:37 PM
    sounds like t-mobile is planning on a buisness model like vergin mobile .. sounds like a good deal especially if they offer phone purchase plans verses lump sum purchases .. and month to month has always been a better deal because your not locked into a contract with fixed minutes and data rates
Other Comments
  • 12 Hide
    goodguy713 , March 4, 2013 3:37 PM
    sounds like t-mobile is planning on a buisness model like vergin mobile .. sounds like a good deal especially if they offer phone purchase plans verses lump sum purchases .. and month to month has always been a better deal because your not locked into a contract with fixed minutes and data rates
  • 6 Hide
    silvianoshei , March 4, 2013 4:19 PM
    Sounds great. Considering switching if true. They are carrying the HTC One, which I do like.
  • Display all 14 comments.
  • 9 Hide
    slomo4sho , March 4, 2013 4:22 PM
    Oh look one of the big 4 are actually adapting and changing their business model to mimic cell phone service everywhere else in the world besides the USA. Definitely a step in the right direction. Now only if we could get data service comparable to South Korea :) 
  • 6 Hide
    TunaSoda , March 4, 2013 4:28 PM
    Now all they need is good service...
  • 0 Hide
    DookieDraws , March 4, 2013 5:10 PM
    Anyone familiar with Page Plus Cellular? Been looking at some of their yearly plans for my father. He wouldn't be a heavy user, just wants one for emergency situations. They have an $80 2,000 minute plan that lasts a year. I doubt he'd use anywhere near that, but if he is about to run out, he can add more minutes. He damn sure won't be texting or sending pictures of his old sack to friends. Don't think so, anyway.

    Anyway, just wanted to ask. Heck, most of their other plans look decent, too.

    Thanks in advance.
  • 2 Hide
    shikamaru31789 , March 4, 2013 5:38 PM
    T-mobile has some excellent deals, such as there $30, 100 minute, unlimited text, 5gb 4G data and unlimited 3G data plan. Unfortunately, T-Mobile still has 2G in my area, while Sprint and Verizon already have 4G here. If T-Mobile could bring at least 3G here in the near future, it would mean a definite switch for me.
  • 1 Hide
    g00fysmiley , March 4, 2013 5:47 PM
    tempting.. t-mobile and verizon both have 4g in my area and some april if sprint doesn't have 4g in my area it is time to switch carriers, i was promised by a rep my area would have 4g in a few months over a year ago, this move might get t-mobile a customer
  • 4 Hide
    Tal Greywolf , March 4, 2013 6:25 PM
    I've been with T-Mobile for over 9 years now. Never had a problem, never had an issue with calls or connectivity, don't use texting, email or web browsing so I can't speak to their reliability. But for what I use it for, it's fine. $39/mo for 1000 anytime minutes, plus the usual weekends free... no other carrier could touch that level of usage for that low a price.

    Personally, I'd rather stay with T-Mobile than anyone else. They've always been rock steady no matter where I've traveled to.
  • 1 Hide
    rickarino , March 4, 2013 6:45 PM
    @DookieDraws I've been with PagePlus for 3 years now. Great prepaid on Verizon network. It's a win-win and I highly recommend it.
  • 1 Hide
    DookieDraws , March 4, 2013 7:36 PM
    rickarino@DookieDraws I've been with PagePlus for 3 years now. Great prepaid on Verizon network. It's a win-win and I highly recommend it.


    Certainly considering it. Seems they have very little phones to choose from, though. There site has only 4 phones!

    Thanks for your info, bro.
  • 1 Hide
    echondo , March 4, 2013 10:52 PM
    I have been with T-Mobile for a good while now, I'm on a plan where 2 family members have Unlimited talk, text, and data and 3 family members have unlimited text with about 200-300 minutes of talk for about $100 a month.

    Again, I've been with T-Mobile for I think 10 years now? Great service and great customer support, definitely worth it and welcome the change(but I never do 2 year contracts as I buy all my phones new and unlock them).
  • 1 Hide
    livebriand , March 4, 2013 10:55 PM
    I like what they're doing. It would be nice if they introduced pay-as-you-go smartphone data plans as well.

    So far, I've found their coverage to be good enough, and so I'll be sticking with them. (galaxy nexus on $30 5GB 100min prepaid plan)
  • 0 Hide
    Caffeinecarl , March 5, 2013 4:07 AM
    T-Mobile has allowed customers to buy phones outright and sign up for service for a while now. I did that with my last phone back in 2011 and it's been a relief. No need to worry about my rates getting jacked up, no device to pay off, and if I want a new phone or a new carrier at any time, it's all me. It's a highly enviable position to be in, even if I've been with them for 12+ years and I'm not showing signs of straying at any point.
  • 1 Hide
    capt_taco , March 5, 2013 4:32 AM
    I've been on T-Mobile since about forever, mainly because their prices are about half what other carriers charge for the same thing. I'm so glad the AT&T deal didn't happen.