T-Mobile axes down payments, ramps up monthly fees

T-Mobile is taking its ‘un-carrier’ approach to the next level by abolishing down payments for a wide catalog of devices, making popular 4G LTE smartphones, tablets, mobile hotspots and feature phones available for free with monthly payments. But there’s a slight catch here. T-Mobile is now asking for higher fees each month in order to cover up the costs.

T-Mobile is offering a host of popular devices with a zero upfront payment. For $27 a month, buyers will be able to pick up the Galaxy Note 2 phablet and the iPhone 5 from Apple. The $25 category has the Samsung Galaxy S4, the Xperia Z from Sony, the BlackBerry Q10 and the HTC One, while the Samsung Galaxy S3 is listed under the $22 lineup. The Nokia Lumia 925 is available for $20 a month and so is the Samsung Galaxy Tab 2 10.1 Android slate. Lastly, the high-in-demand Nokia Lumia 521 WP8 handset is tagged at just $5 per month.

T-Mobile Phones

T-Mobile is also allowing users to couple this promotion with the Jump upgrade program where they will be able to trade-in their smartphones every 6 months for a new device. The procedure for this scheme is simple. Customers will have to buy a new device with a Simple Choice Plan via the equipment installment program and add the Jump service to their purchase which is tagged at $10 a month.

The latest T-Mobile promotion will go live starting today and it should run for the entire summer. Here’s a small example on the difference between the earlier scheme and the latest one. Instead of a $99.99 down payment with $20.83 monthly charges for the HTC One, you will be able to get the handset for free with a fee of $25 for the usual 24-month period.