T-Mobile nixes down payments, ups monthly fees

NEW YORK (AP) — T-Mobile said Friday that it is temporarily eliminating upfront payments on new phones, but it is increasing the prices for some models through higher monthly payments.

Unlike rival carriers, T-Mobile charges the full retail price of phones, spread over two years, but reduces monthly service fees for voice, text and data. AT&T, Verizon, Sprint and others typically charge $200 or so up front for high-end phones and make up for the rest of the phone’s cost through higher service fees over the life of a two-year contract.

Under a new payment plan introduced in March, T-Mobile charges a down payment for the phone and monthly installments until the device is paid off in two years. For instance, customers pay $146 up front for an iPhone 5 and $21 a month for two years for a total cost of $650. That’s about the same price Apple charges when someone buys the phone without a two-year contract for use at another carrier.

In eliminating the down payment, starting Saturday, some phones will be cheaper. For instance, customers will be paying $600 overall for Samsung Electronics Co.’s Galaxy S4, compared with $630 currently. Apple’s iPhone 5 will be $2 cheaper, at $648 overall.

But HTC Corp.’s One will cost $600, up $40. Other higher-priced devices include Sony Corp.’s Xperia Z and BlackBerry Ltd.’s Q10. T-Mobile said it was revising prices to reflect demand and other factors.

Thank you for reading the Springfield News-Sun and for supporting local journalism. Subscribers: log in for access to your daily ePaper and premium newsletters.

Thank you for supporting in-depth local journalism with your subscription to the Springfield News-Sun. Get more news when you want it with email newsletters just for subscribers. Sign up here.

X