T-Mobile iPhone

Earlier this year T-Mobile announced a plan to offer its customers more flexibility by eliminating cell phone subsidies, and the carrier has followed through by rolling out its no contract data plans over the weekend. Instead of subsidizing cell phones and locking customers into two-year contracts, T-Mobile users can now choose one of several monthly data options. The plans start at $50/month, all the way up to $110 for 12.5GB/month. There is also a $70 unlimited option, and each plan comes with unlimited talk, text, and tethering.

The catch is customers will be forced to pay full prices for new phones, but at least there will be an option to do it in installments. For example, you can secure a $400 phone with a small down payment, and make monthly payments until it's paid off. T-Mobile hopes this will be a better and cheaper option for customers than what AT&T, Verizon and Sprint are currently offering.

T-Mobile will finally offer Apple products early in 2013. Millions of iPhone users already count T-Mobile as their wireless carrier, even though an official deal between Apple and the company is fresh off the presses. Details are lacking, however 9to5 Mac reports other carriers are interested in T-Mobile's plans to eliminate subsidies.

It's possible T-Mobile could offer its iPhone purchasers a lower up-front cost along with a monthly installment plan, spreading the total cost of a new device across 20 payments. These individual installments would cost around $15-20 per month and could be billed with the wireless subscription plan.

After announcing that T-Mobile is close to activating nearly 2 million iPhones on its network, Chief Executive John Legere told Reuters, the carrier will start selling the iPhone in about three to four months. T-Mobile also plans to eliminate cellphone subsidies in an effort to offer its customer cheaper plans and more flexibility. Legere promised the Apple experience would be "dramatically different" for T-Mobile subscribers, and believes smartphone users will benefit from avoiding long contracts and restrictive data plans.

T-Mobile hopes the contract free iPhone will convince AT&T and Verizon Wireless customers to switch carriers, and believes its partnership with Apple will increase its market share by 5% or more. All the major U.S. carriers currently offer smartphones at a subsidized price, but customers are forced to agree to long contracts that prohibit them from upgrading their devices. T-Mobile's users will be able to freely exchange or sell their older devices once the subsidies and contracts are out of the picture.

With its back against the wall, T-Mobile has decided to shake up the mobile market by putting an end to subsidized smartphones. All four major U.S. carriers offer smartphones at a subsidized price, but customers must agree to long contracts which prohibit them from upgrading their devices. T-Mobile believes ditching the subsidy model favored by AT&T, Sprint and Verizon will appeal to customers who are tired of the restrictions. Chief Executive John Legere said under the new model customers will be able to freely upgrade their devices by trading them in.

Legere did not say when the carrier plans to rollout its new policy, but promised the Apple experience would be "dramatically different" for T-Mobile customers. T-Mobile also managed to avoid agreeing to the same $15.5 billion iPhone deal Sprint signed up for last year, and the move will help T-Mobile cut back on upfront costs.

As expected, Deutsche Telekom has announced its U.S. subsidiary T-Mobile will be carrying the iPhone in 2013. The telecommunications company tweeted the news on Thursday:

$DTEGY T-Mobile USA has entered into an agreement with #Apple #dtcmd $AAPL

— Deutsche Telekom IR (@DT_IR) December 6, 2012

Merrill Lynch's Scott Craig accurately predicted the deal last week when he told investors "speculation is heightening" that Deutsche Telekom and Apple will enter into an agreement. The deal gives Apple access to 98% of the U.S. post-paid market, and analysts are predicting T-Mobile will sell around 4 million iPhones next year.