News by Andrew Kameka on Monday March 25, 2013.
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T-Mobile is moving towards being more of a no-contract carrier, or The UNCarrier as the fourth place network in the U.S. likes to say, following the unveiling of new calling plans and the end of smartphone subsidies. In December, T-Mobile confirmed that it would revise its calling plans and end device subsidies, and those policies went into effect yesterday.
Unlimited calling, texting, and web are included in all T-Mobile plans, but customers will still have to make choices that affect the type of service received. Plans start at $50 per month and include only 500 MB of 4G data; all data that goes over the allowance will be throttled to 2G (EDGE) speeds. Customers can opt to pay $60 to raise 4G caps to 2GB, $70 for 4GB, and similar increments of $10 until reaching 12GB of 4G data for $110 per month. There's also an "Unlimited" option to removed the 4G data cap completely for $70 per month, but that option limits users to only 500MB of tethering per billing cycle. Full details on plan options are available at T-Mobile.
T-Mobile has also ended the practice of providing device subsidies to lower the costs of smartphone purchases. Customers must now pay full price for their phones or agree to a financing option that adds an additional $20 to their monthly bill for two years. This strategy was announced last year as a way to cut the company's costs of selling smartphones but continue to give customers a chance to own a device without paying the full costs at once.
Andrew is MobileBurn.com's managing editor. He is based in Miami, Florida.