T-Mobile Nixes Down Payments, Ups Monthly Fees

Posted at: 07/26/2013 11:32 AM

NEW YORK (AP) - T-Mobile is eliminating down payments on new phones, but it is increasing the price for some models through higher monthly payments.

Normally, T-Mobile charges a down payment for a phone and monthly installments until the device is paid off in two years. In dropping the down payment, some phones will be cheaper. Customers will save $30 overall for Samsung's Galaxy S4 under the promotion. The iPhone 5 will be $2 cheaper. But the HTC One will cost $40 more.

T-Mobile says it's revising prices to reflect demand and other factors.

T-Mobile US Inc. says its limited-time promotion begins Saturday. It's a response to new upgrade plans from AT&T and Verizon, which carry higher fees for phones but waive the down payment. T-Mobile hasn't announced an end date for the promotion.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
 

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