T-Mobile Makes Potential Game Changing Move Away From Cell Contracts

By Ian Bush

PHILADELPHIA (CBS) – T-Mobile may be the smallest major wireless provider but it’s just made a big move to shake up how most of us pay for phones and cell service.

Most Verizon, AT&T, and Sprint customers are tied down for a couple of years.

“The model’s broken, it’s too confusing,” are the words of T-Mobile’s CEO, told to us by CNET senior editor Jessica Dolcourt. “Let’s simplify things and let’s do away with the contract.”

Like prepaid services, T-Mobile now will make you pay up front for the full cost of a device, or you’ll put some money down and pay off the rest over time.

“Over the span of two years, you can save hundreds of dollars.”

Since, Dolcourt says, T-Mobile charges less for service — unlimited minutes, texing, and data is $70/month.

For example, normal use of an iPhone 5 (which T-Mobile will get on April 12) will set you back a little over $2,000 on T-Mobile over two years, but it’s around $2,600 on Verizon and AT&T.

The big two, though, say their data networks are faster; T-Mobile’s fastest 4G LTE isn’t yet available in Philadelphia.

More from Ian Bush

One Comment

Comments are closed.

More From CBS Philly

Getaway Do’s And Don’ts For Hurricane Season
Five Small Midwestern Towns To Visit Now

Watch & Listen LIVE