T-Mobile has announced that it will be launching a new promotion where it has slashed the upfront price for smartphones like the iPhone 5 to $0.

Customers will be able to get the iPhone 5 without making a down payment, but there is a catch. Customers have a pay a slightly higher installment of $27 per month, on top of the monthly service charges.


“The number of reasons not to switch to T-Mobile this summer is ZERO,” said John Legere, president and chief executive officer, T-Mobile US. “This is a fantastic offer and we’re making it easier than ever for customers to get the latest amazing devices. Adding Zero Down in addition to JUMP!, and Simple Choice with no contract is all about making wireless work for consumers and shaking up this industry.”

Previously, customers had to make an upfront payment of $145.99 with $21 per month installment for 24 months. If you do the math, over 24 months you end up paying almost the same amount ($6*24 = $144). The offer is available only on the 16GB iPhone 5, it is not available on the 32GB and 64GB models.






e promotion goes live tomorrow. T-Mobile says that the promotion will be available for a limited time, but hasn’t provided an end date for it.

T-Mobile seems to have launched the promotion to counter AT&T’s Next program, which offers customers an option to upgrade their smartphone or tablet every twelve months with no down payment, no activation fee, no upgrade fee and no financing fees. Not surprisingly, AT&T’s Next early upgrade program goes like today.

It is good to see carriers fighting it out to get customers, unfortunately as we’ve pointed out none of them seem to reduce the cost of owning a smartphone.