T-Mobile USA to Cease Offering Subsidized Device Pricing Options in 2013 - MacRumors
Skip to Content

T-Mobile USA to Cease Offering Subsidized Device Pricing Options in 2013

tmobile iphone unlimited unlockedJust as it announces that it will begin offering Apple products, presumably including the iPhone and iPad, next year, T-Mobile USA has also revealed that it will be restructuring the way it sells to customers by eliminating device subsidies and focusing on lower monthly plan costs. The plans were announced at Deutsche Telekom's annual investor conference today and noted by Fierce Wireless.

Currently T-Mobile offers Classic plans that subsidize the device and require a two-year contract and Value plans that let customers pay the full cost of their smartphones or pay it off in monthly installments in exchange for lower monthly plan rates. Legere said that in 2013 T-Mobile will eliminate its Classic rate plans that include device subsidies and instead only offer Value plans to customers.

Under one example for "the most iconic device in the world", Legere noted that customers might pay $99 upfront and then $15-$20 per month for 20 months on top of their monthly plan in order to pay off the full cost of the device. With the customer being responsible for the full cost of the device, T-Mobile can offer lower base plan pricing.

Legere did not provide specifics on the company's plans to offer Apple products, which was announced earlier today. However, he did say that when the company launches Apple's products, it will be dramatically different. He also said that T-Mobile had not made a volume commitment to purchase Apple products on size of what Sprint Nextel has committed to "or anything close to it." Sprint last year inked a four-year, $15.5 billion deal to sell the iPhone.

T-Mobile will become the last of the four major U.S. carriers to offer the iPhone, joining AT&T, Verizon, Sprint and a host of smaller carriers that have partnered with Apple on the device.

Popular Stories

Four iPhone 18 Pro Colors Mock Feature

iPhone 18 Pro Launching Later This Year With These 10 New Features

Tuesday May 26, 2026 6:32 am PDT by
While the iPhone 18 Pro and iPhone 18 Pro Max are not launching until September, there are already plenty of rumors about the devices. It was initially reported that the iPhone 18 Pro models would have fully under-screen Face ID, with only a front camera visible in the top-left corner of the screen. However, the latest rumors indicate that only one Face ID component will be moved under the...
Apple Watch Ultra 2 Black Titanium

watchOS 27 Will Add These New Features to Your Apple Watch

Sunday May 24, 2026 11:53 am PDT by
Apple will unveil watchOS 27 during its WWDC 2026 keynote on Monday, June 8, and a handful of new features have been rumored already. The first developer beta of watchOS 27 should be available immediately following the keynote, and a public beta typically follows in July. The update should be released to all users with a compatible Apple Watch model in September. Below, we recap watchOS...
iPhone 15 General Feature Green

Apple Preparing 'Most Significant Overhaul in the iPhone's History'

Friday May 22, 2026 1:36 pm PDT by
Apple reportedly plans to unveil its first foldable iPhone in September this year — it may be named "iPhone Ultra" — and expectations are high. In his Power On newsletter, Bloomberg's Mark Gurman said the foldable iPhone will be "the most significant overhaul in the iPhone's history." "iPhone 4, iPhone 6 and iPhone X were clearly a big deal, but this is a whole new design," he said....

Top Rated Comments

MJedi Avatar
176 months ago
Depending on how much the monthly plans are, this might a good way to attract customers. Your monthly plans SHOULD be lower if you use an unsubsidized phone. Isn't the point of a contract is that you pay for the phone over the 2-year contract? And when the phone is paid off, your monthly should go down.

Not at AT&T or Verizon.
Score: 29 Votes (Like | Disagree)
ixodes Avatar
176 months ago
This ought to prove interesting.
Score: 20 Votes (Like | Disagree)
176 months ago
just back from making a great salami sandwich and i read this! im already on tmobile w. my unlocked iphone 4s in nyc. this is awesome for people who want to save money. its my birthday today so I feel like its a coincidence
Score: 19 Votes (Like | Disagree)
Westside guy Avatar
176 months ago
This is a great thing for US consumers... but I'm not sure they're going to recognize that fact.

----------

Give me a pay-per-voice-minute, unlimited text and unlimited data plan, and I'm there.

Their $30/month, 100-minute voice plan (only available on the web) is essentially this. I believe if you go over 100 minutes in a month the cost is 10 cents/per minute.
Score: 13 Votes (Like | Disagree)
176 months ago
I'm not really sure how this changes anything so instead of paying $80/month you pay $60/month for your service + $20/month for the device!?!?!

They already address the difference in the handset costs with the amount they charge for the handset hence why a 64GB iPhone 5 costs considerably more on a subsidised contract than a lesser handset.
At the end of two years you’re paying $60 a month, currently you would continue to pay $80 a month despite having “paid off” the phone. So if you’re the type of customer who likes upgrading more frequently the net result is the same, if you couldn’t care less and keep your phone for more than 2 years you end up ahead of the game.
Score: 12 Votes (Like | Disagree)
176 months ago
just back from making a great salami sandwich and i read this! im already on tmobile w. my unlocked iphone 4s in nyc. this is awesome for people who want to save money. its my birthday today so I feel like its a coincidence

Happy Birthday.
Score: 9 Votes (Like | Disagree)