LAS VEGAS — T-Mobile originally launched its value plans in September 2011 and Tuesday it announced plans to move all of its devices to the Value plan model.
Most phones you purchase at a carrier are subsidized by that carrier. What that means is you might get a $600 phone for $200, with the carrier picking up the tab for the leftover $400 of the device's purchase price.
"We're not a big fan of the subsidy model," T-Mobile's Brad Duea told Mashable. "We think the value plan is a better model for the customer, because it's more transparent: here's the price for your device and for your service."
With the value plans, phones will be available for a low, out-of-pocket price, with T-Mobile covering the remaining cost of that device but asking you to pay it back over time through an interest-free loan of sorts.
Once your phone is paid off, then you're no longer under contract for that device. If you want to get a new phone, you can simply pay off your old one and be eligible for an upgrade.
T-Mobile isn't announcing when it will be at 100% on the plans.
Starting Jan. 9, customers will be able to purchase the LG Optimus L9 for $199.99 with no contract and score unlimited data, text and voice for $70 a month.
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Photo courtesy of LG
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