T-Mobile Frees U.S. Customers of Subsidies, Provides Appealing Flexibility, Price

From DailyTech: T-Mobile USA -- invigorated by a merger with MetroPCS Communications Inc. (PCS), courtesy of the partial acquisition of MetroPCS by parent Deutsche Telekom AG's (ETR:DTE) -- is looking to rock the U.S. cellular market by switching to a mostly subsidy-free "UNcarrier" model.

Traditionally smartphones in the U.S. cost anywhere from nothing (free) to a couple hundred dollars. The true cost of these smartphone devices can be $600 USD or more. But carriers have transferred that cost to customers over the life of the plan via higher service bills.

It's long seemed a clever psychological gambit; tricking customers into thinking they're paying less. But it's not one that everyone is happy with. Of late opposition to the subsidy model has been mounting. And T-Mobile USA is leading the critics.

Starting today you'll be able to buy an unsubsidized handset from the carrier or elsewhere and then build a service package buffet-style that works for you.

Pricing varies based on the amount of data you select (500 MB, 2 GB, 4 GB, 6 GB, 8 GB, 10 GB, 12 GB, and unlimited options are possible). For the 500 MB option you get that, plus unlimited talk and text for $50 USD/month. For $20 USD you get "unlimited" data (no overages), while for each $10 USD more, you get 2 GB of unthrottled data.

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