T-Mobile announces zero down "sale" on all phones for the summer

T-Mobile announces zero down
T-Mobile is announcing what it calls an "Unprecedented Deal" for this summer which offers zero down for all of the phones on the network. The carrier is even dropping the price of one of the most popular devices; but when you look closer, the deal isn't exactly as amazing as T-Mobile would have you believe.

The solid part of the deal is that over the course of a 24-month Equipment Installment Program (EIP), you can save a bit on certain devices, like the HTC One, which will cost $600 over the EIP rather than $649. Of course, you may already see where the not so great part of this "sale" is happening. While T-Mobile won't be collecting any up front payments for devices, the monthly EIP will be higher, which offsets the value of the deal

For example, the iPhone 5 sells for $145.99 down with 24 monthly payments of $21; but with the new promotion, the iPhone 5 will be zero down and $27 per month for 24 months, meaning you'll end up paying just $1.99 less than if there had been the up front payment. The press release below has a breakdown of the monthly costs of the most popular devices on the network.

As we said, some devices will get you more of a discount over the length of the EIP, but most savings won't be more than about $50. The zero down deal will begin tomorrow, July 27th, through your local T-Mobile retailer, and online. 

America’s Un-carrier offers the ultimate promotion with the lowest upfront price on devices

BELLEVUE, Wash. — July 26, 2013 — In time for back-to-school, T-Mobile US, Inc. (NYSE: TMUS) will drive an unparalleled promotion this summer, dropping the upfront price on its entire lineup of devices in stores nationwide to zero dollars down. With this promotion, new and existing well-qualified consumers and small business customers will get affordable and hassle-free access to the latest 4G LTE smartphones, tablets, mobile hotspots and feature phones at the upfront price of $0 down with monthly device payments[1].

This limited-time promotion is available starting tomorrow, July 27, 2013. In addition to the promotion, customers also cantake advantage of T-Mobile’s groundbreaking upgrade program, JUMP!™, which enables them to sign up to upgrade their phones when they want, up to twice a year as soon as six months from enrollment.

“The number of reasons not to switch to T-Mobile this summer is ZERO,” said John Legere, president and chief executive officer, T-Mobile US. “This is a fantastic offer and we’re making it easier than ever for customers to get the latest amazing devices. Adding Zero Down in addition to JUMP!, and Simple Choice with no contract is all about making wireless work for consumers and shaking up this industry.”

The hottest devices of the summer at the lowest upfront cost combined with T-Mobile’s Simple Choice Plan, unlimited data on a nationwide 4G network and no annual service contracts gives customers an opportunity that’s tough to beat. The promotion will be available nationwide at participating T-Mobile retail stores, via customer care, and online at http://www.T-Mobile.com. A selection of the devices included in the promotion is as follows:

Screen Shot 2013-07-26 at 9.23.25 AM

JUMP!, only from T-Mobile, offers customers the freedom to upgrade to a new device more frequently and affordably, and it includes handset protection that helps to protect against malfunction, damage, loss or theft – all for just $10 per month, per phone (plus taxes and fees). Customers can upgrade to a new phone, financed through T-Mobile’s Equipment Installment Program (EIP), twice every 12 months after they’ve been in the JUMP! program for six months.[3] Simply trade in an eligible T-Mobile phone in good working condition at a participating store location. Any remaining EIP payments will be eliminated, and current customers can purchase new phones for the same upfront pricing as new customers, with device financing3 and a no-annual-service contract Simple Choice Plan.

Simple Choice Plan

T-Mobile’s Simple Choice and Simple Choice for Business Plan start with a base rate of $50 per month for unlimited talk, text and Web with 500MB of high-speed data. Customers can get 2.5GB of high-speed data for $10 more per month per line or unlimited data for an additional $20 per month per line. Customers can add a second phone line for $30 per month, and each additional line is just $10 per month. There are no caps and no overages on T-Mobile’s network, and no restrictive annual service contracts.

When small business customers activate a new line or renew an existing line of service with a Simple Choice for Business plan (min. 500 MB data required), they can access T-Mobile’s Business Extras bundle for added value. Business Extras customers with capable devices may opt into a free year of 24/7 remote IT support from a well-recognized, third-party service provider and a year of T-Mobile North American Flat-rate Data feature, allowing free monthly access to up to 150MB of overage-free, high-speed data across North America, including Canada and Mexico on our partner networks.[4] Other benefits include two free paper-to-mobile form conversions, waived activation fees, Business Care support, Wi-Fi Calling on enabled devices, and free Smartphone Mobile Hotspot on select rate plans.

T-Mobile’s 4G LTE Network
T-Mobile’s 4G LTE network now reaches more than 157 million people across the United States and is live in 116 metropolitan areas. T-Mobile remains on target to deliver nationwide 4G LTE coverage by the end of the year, reaching 200 million people in more than 200 metropolitan areas. In addition, T-Mobile’s 4G HSPA+ service is available to 228 million people nationwide. By combining 4G HSPA+ and LTE network technologies, T-Mobile can provide customers with a strong, seamless nationwide 4G network experience[5].



1. papss unregistered

At least they Re not making you pay more over the duration like the others and their deals...still lousy service though.

3. PapaSmurf

Posts: 10457; Member since: May 14, 2012

I don't think you read the article at all. If you got an iPhone 5 16GB, instead of paying $145 + $21x24, you pay $0 + $27x24... Your monthly installments are higher, but barely come out cheaper in the course of 24 months.

6. squallz506

Posts: 1075; Member since: Oct 19, 2011

Dude, dont forget to factor in time-value of money. Assuming a risk free rate of interest of 4% the payments are actually 145+21((1-1.04^(-24))/.04)=465.19 VS 0+27((1-1.04^(-24))/.04)=411.67 A net savings of $54 because you are not paying up front.

9. k1ng617

Posts: 270; Member since: Oct 13, 2009

leaving it in the bank will net you less than 1% so that's not really a fair calculation.

17. squallz506

Posts: 1075; Member since: Oct 19, 2011

My money market account earns ~16%. 4 is more than fair.


Posts: 2315; Member since: Jul 30, 2011

lol ..... nice!! btw, Michael H's head just exploded when it saw your formula :)

18. squallz506

Posts: 1075; Member since: Oct 19, 2011

Lol its a simple present value of an annuity formula. Its called "a angle n". (1-v^n)/i where I is interest, n is # of periods and v is i^-1. Multiply a angle n by the payment and that's the present value of the payments. Actuarial math 101

2. PapaSmurf

Posts: 10457; Member since: May 14, 2012

I got excited when I read the title, but when I read you only save $1.99 in the long run, I stopped reading and started laughing. Only T-Mobile.

21. Shatter

Posts: 2036; Member since: May 29, 2013

if it was att or verizon you would end up paying more in the long run.

4. -box-

Posts: 3991; Member since: Jan 04, 2012

Hmm, if there's any savings on sales tax there could be more savings realized

8. k1ng617

Posts: 270; Member since: Oct 13, 2009

No, you are still charged tax on the full price of the phone. I did that last year with the Note 2.

5. davenycept

Posts: 200; Member since: Jul 03, 2012

Am I the only one that sees tmo is killing me with these shenanigans? I just want to get a phone... I don't mind paying 239for a 2 year agreement but all this extra stuff is just an annoyance... does anyone else feel this way?

7. promise7

Posts: 894; Member since: Jul 03, 2013

I kind of agree, some ppl don't mind staying on a 2yr agreement for paying a susidized price. I thought t-mobile should have kept the option of paying a subsidized price and signing into a 2yr agreement, but also adding in their new no contract, pay full price of the phone plan. It would give users more options.

23. lolrus

Posts: 29; Member since: May 18, 2013

You can still get a T-Mobile subsidized 2 year contract phone at a third party retailer. Staples and Best Buy are two that I know of that carry the "classic" plans.

25. aray1014

Posts: 1; Member since: Jul 26, 2013

or sams club or walmart and target!!!


Posts: 2315; Member since: Jul 30, 2011

Nope but, the average consumer has sh¡t for brains and can't see the final cost.


Posts: 2315; Member since: Jul 30, 2011

Still a rip-off!! I swear the average consumer is so dense that they'll walk right into T-Mobile and swear this is a great deal!

24. bigbmc26

Posts: 43; Member since: May 10, 2012

A Lumia 925 for $480 isn't anywhere near a rip off. You actually save $50 with this deal. Don't see the issue on certain phones. Apple is always a rip off!

13. xtroid2k

Posts: 601; Member since: Jan 11, 2010

People complain regardless. If you have money to pu down awesome. If not, this is an awesome deal. You may not save that much money but the value of being able to walk into a store and come out with a phone of your choice with no immediate financial hold up has value in it self. I mean Americans have had credit since the 1930s and have accepted that sometimes you pay more for the privalage of instant gratification with out funds.

14. grapeseed87

Posts: 123; Member since: Mar 13, 2013

Its like if you dont have money, dont worry! You can still get the device you want but then will also have to pay eventually. I think its a good deal on T-mobile's part, as the provider of phone them not taking anything upfront shows trust and flexibility.

15. salic

Posts: 24; Member since: Dec 23, 2011

Why would a non contract carrier discount devices below their cost when you could leave the next day with your phone? The idea of $0 down appeals to a lot of people who find it much easier to cough up an extra $6/month than $150 up front.

16. MartyK

Posts: 1043; Member since: Apr 11, 2012

It's a great begining, any saving is better then No saving( even .50 saving)..not to mention your bill go down vs what other carries is doing at the present moment.

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