There's not a whole lot new here - T-Mobile has long given discounts for off-contract plans without a phone subsidy. They've just figured out that it can set th

There's not a whole lot new here - T-Mobile has long given discounts for off-contract plans without a phone subsidy. They've just figured out that it can set them apart in the mobile space, and are pushing it as a result. I think it's a brilliant move, but it's going to hinge on whether people can get past the increased initial cost of the phone. For the past several years, I've been buying my phones outright (Nexus devices) and using them on T-Mobile for $20/month less than I'd pay on-contract. It ends up being a better deal financially, and I have the freedom to upgrade my device any time I want. They're going all-in on that now and reworking all their service towards that model. Right now, I pay $40/mo for 750 minutes/unlimited text/unlimited data, and am using a Nexus 4 ($350 from Google) with the plan. Compare to something like a Verizon prepaid plan with unlimited minutes/text and 2GB of data for $70/month. Even with a "free" Verizon phone, at the 12-month mark, the T-Mobile plan is less expensive, and continues to be so thereafter.