T-Mobile's plan doesn't handcuff you for two years, but could tie up your new phone for 20 months
will be locked to T-Mobile until you pay it off. This is what makes the whole no-contracts arrangement work because after all, the company does have to guard itself against those looking to take advantage of it.
By locking down each phone on the EIP (Equipment installment Plan), T-Mobile is protecting itself against someone paying $99 for, say, the Samsung Galaxy S4, and then leaving T-Mobile for another carrier. After you pay off the phone, T-Mobile will be more than happy to unlock the handset. On the other hand, if you do buy a phone from T-Mobile, you personally might not be handcuffed to the mobile operator, but your phone will be until the balance owed on the device is zero.
1. MikeG77 (Posts: 373; Member since: 24 Nov 2008)
So in a way its still a contract and TMO is still subsidizing your phone until YOU pay it off.
2. dragonscourgex (Posts: 307; Member since: 16 Jan 2012)
That's how I seeing it. Pretty much the same as now, just done a different way. You are free to leave and go to another carrier..but you still are paying T-Mo for the phone. So, in a way, it is slightly better then the current model.
9. Aeires (unregistered)
Or buy a phone on your own instead of through T-Mobile. I walked into a T-Mo store with N4 in hand, wasn't a problem.
13. MEeee (Posts: 293; Member since: 19 Oct 2011)
Single line, you'll pay $70/month (500MB-bring your own phone) instead of $50/month (500MB-buy full price at Tmobile). $60/month (500MB-bring your own phone) for each line for family.
25. designerfx (Posts: 76; Member since: 26 Mar 2013)
not only that, but you can pay the phone on your own payment plan. want it to be 7 months, unsubsidized? no problem!
This 20month lockin is just for people who are bad with math. I'm not okay with that, but at least you have alternatives even within Tmo.
20. MikeG77 (Posts: 373; Member since: 24 Nov 2008)
Thats funny i get a down vote for stating the obvious. Some people on this site are so childish that they just down vote for the fun of it. Here is an idea for everyone....instead of being immature why dont you bring some facts to counter my argument.
29. NexusKoolaid (Posts: 321; Member since: 24 Oct 2011)
They're not subsidizing your phone - they're financing it. Big difference.
31. lovenyc8 (Posts: 164; Member since: 13 Mar 2013)
you can pay the phone one time like most people buy iphones of ebay they pay one time so its not like contract
4. Stelth3d (Posts: 3; Member since: 26 Mar 2013)
waste of time, just buy a phone without a contract and use a credit card to pay for it, pay $20 a month on a credit card and raise your credit score.
not locked in a contract and not locked to phone either.
Stupid T-mobile, $20 a month for 20 months plus $100 down equals $500. Most phones with out contracts are about that cost, so whats the point.
6. jlsmarts (Posts: 2; Member since: 26 Mar 2013)
@Stelth3d Exactly. The "Equipment Installment Plan (EIP)" only benefits T-Mobile unless the non-EIP price is higher than the manufacturer's MSRP.
Ex. Samsung GS 4 is $499.99 w/ T-Mo's EIP vs. $799.99 non-EIP.
The Samsung GS 4's suspected MSRP= $699.99
8. Stelth3d (Posts: 3; Member since: 26 Mar 2013)
and your still using t-mobile service which sucks, they need to give that chick in there commercials a faster bike.
17. suneeboy (Posts: 181; Member since: 02 Oct 2012)
So that you don't have to drop the money down up front. Then you get a cheap plan and you pay off the phone with your plan...still saves money. Or if you're not a broke or cheap ass you can just buy the phone.
19. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)
I don't think that's really worth it... with the interest on the credit card... I think paypal might be a better choice, they offer 0 interest if you pay off in how many months.
21. Captain_Doug (Posts: 817; Member since: 10 Feb 2012)
The point is people want things now and they're offering them a way to do that. It's not the smartest way, but it is the quickest if you're low on funds. Saving up and buying it outright makes too much sense for some people to handle.
26. rusticguy (Posts: 2828; Member since: 11 Aug 2012)
Exactly. That's how things g in India where we do get Interest free EMI for as long as 12 months most popular being 3,6,9.
28. jcpwn2004 (Posts: 314; Member since: 18 Jan 2012)
in the US most people are horrible at managing their money and can only think short term and not big picture.
Seeing the iphone 5 for 99$ is a lot more alluring than seeing it for 600$.
5. WirelessCon (Posts: 309; Member since: 11 May 2010)
Nexus 4 on T-Mobile, and why not? They won't throttle you down to HSPA cause that's all the phone has. Unlimited $50. Tempting, but T-mobile's coverage is lacking.
7. akz1112 (Posts: 16; Member since: 24 Mar 2013)
??? It's 70$ for unlimited data. $50 plan get throttle after 500mb.
10. Stelth3d (Posts: 3; Member since: 26 Mar 2013)
yeah i pay $180 for verizon with an iphone 4, GS3, and Galaxy 4g tab. Unlimited calling and 4gb data each. No throttling that i can see. Thats $60 a device. WIN and WIN, Go Verizon
27. Courtimus (Posts: 9; Member since: 03 Jan 2012)
That's 4gb data total... $70 for the data, $40 access for each smartphone, $10 for tablet, $20 bucks or so for taxes?
16. MEeee (Posts: 293; Member since: 19 Oct 2011)
$50 if you buy the phone with them. $70 if you use your own Nexus 4. Go to T-Mobile site and try to get the $50 plan without buying the phone. Checkout is grayed out.
11. SavageLucy42 (Posts: 211; Member since: 24 Mar 2011)
While this is basically the same thing as a 2-year contract, wouldn't it mean though that if you wanted to upgrade earlier you could talk to them about going ahead and paying off the phone you've subsidized?
24. tizz06 (Posts: 12; Member since: 17 May 2012)
or u can trade the phone in and use it as a credit so u can get u a new phone when u want a new phone
12. wizzardtech (Posts: 59; Member since: 12 Mar 2012)
This is the method some cellphone companies offer in Canada. We call it a TAB.
We pay small amount for the phone (lets says $49) then the remaining cost of the phone will
be divided on 24 months, just say $20 or 15 monthly. You cant leave until its finish or other option is you will be charge with the remaining cost of the device if you leave before that and some fees.
14. dcgore (Posts: 208; Member since: 24 Feb 2012)
What about just paying $20 to unlock your phone and just walking away...
22. Captain_Doug (Posts: 817; Member since: 10 Feb 2012)
You'll still be charged for it. A bill is a bill. You may not be paying for the service but you'll still get a bill for the device.
15. Joshing4fun (Posts: 1060; Member since: 13 Aug 2010)
$20 for 20 months for any phone? And every phone will be ~$99 up front? Well then good bye low end phones on TMobile.
18. PapaSmurf (Posts: 9045; Member since: 14 May 2012)
$20 a month for high end phones. Low end phones are about $5-10.
23. Rayvelynn (Posts: 124; Member since: 05 Jul 2012)
If you can't pay for the phone in 3-6 months you probably have no business buying the phone, lol
30. Fuego84 (Posts: 298; Member since: 13 May 2012)
I see this very fair. No problems here considering I always pay full price for a phone.the way I see it is either you pay full price for the phone or you buy by their terms which paying $20 per month until you payed up is better than having to continue service with them for 24 months.
32. MorePhonesThanNeeded (Posts: 645; Member since: 23 Oct 2011)
Lots of ignorant folks on here, the payment plan can be payed off faster if you so wish to. I swear it's like some people on here just like to complain. It's not a subsidy it's a finance thing, if you can fork over more cash to pay for the device then you are in a better position. It's leagues better than a contract which once you signed you can't opt out without a ETF no matter when you decide to opt out, it will still be a high cost.
To the original poster it's not like a contract, but you do have to fully pay for that device before you can call it your own. Carrier still has to protect themselves against conniving cheats and other deadbeats who will look for a way to score an expensive device on the cheap. Stop complaining about things if you barely have an idea of how it works to begin with, just tossing out assumptions just make you look like el burro.
T-Mobile is giving customers the best option possible, zero contract and still have a way to get the latest phones. While their network isn't the greatest they are make inroads and are lighting up LTE as we speak. Hope this bodes well for T-Mobile and they start something like other carriers giving customers the option to pay per month to own a phone instead of a contract.