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

iPhone 18 Pro Rumored Colors

What's Coming in September: New iPhones, Apple Watches and More

Thursday August 13, 2026 4:20 pm PDT by
Apple will introduce at least five new devices at its iPhone-centric event next month, and it's also possible we'll get devices waiting on Siri AI like the Apple TV. iPhone 18 Pro The iPhone 18 Pro is going to look like the iPhone 17 Pro, but with a smaller Dynamic Island. It's getting some internal updates, including a new Wide camera with a variable aperture for more control over lighting ...
iPhone 17 One Year Later Thumb 1

Should You Buy an iPhone 17 Now or Wait for iPhone 18?

Friday August 14, 2026 12:15 pm PDT by
For the first time since Apple started selling standard and "Pro" iPhones, we're not going to get an entry-level iPhone model this fall. Apple doesn't plan to release an iPhone 18 in September, and will only launch the iPhone 18 Pro, iPhone 18 Pro Max, and foldable iPhone Ultra. The lower-cost iPhone 18 won't come out until spring 2027. Subscribe to the MacRumors YouTube channel for more ...
Everything New Your iPhone Can Do on iOS 27 Feature 1

30 New Things Your iPhone Can Do in iOS 27

Friday August 14, 2026 6:24 am PDT by
Apple will release iOS 27 in September, and despite the company's focus this year on refining its flagship operating system and nixing bugs, there are still many additional features on the way, not least of which is Apple's new context-aware Siri, re-tooled for the generative AI era. This year's major iPhone software update isn't all about AI, though, as the following feature list...

Top Rated Comments

MJedi Avatar
179 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
179 months ago
This ought to prove interesting.
Score: 20 Votes (Like | Disagree)
179 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
179 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)
179 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)
179 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)