Summary: T-Mobile recently announced it would no longer force customers into two-year contracts, instead offering monthly plans starting at $50. That price point includes unlimited talking and texting and 500 MB of 4G data and unlimited 2G data after that. For $70 a month, just $20 more, you get unlimited 4G data for a single phone. But no more contracts also means a change in the way T-Mobile subsidizes phone prices. You can get an iPhone from Verizon for $199 instead of $649 because Verizon knows you’re paying them monthly for the next two years. With no contracts, T-Mobile is charging an up-front cost plus a monthly fee to make up the difference. An iPhone 5 on T-Mobile will cost you $99 up front and $20 a month for 24 months, which certainly sounds like a contract to me – nope, you don't get to keep the phone if you stop paying your monthly bill – compare prices carefully – remember, there's no free lunch and no free phones!
