(NEW YORK) — After five years, wireless carrier T-Mobile will finally start selling the iPhone on Friday. But the company is also sweetening the deal for customers.
From April 12 through June 16, customers will be able to bring in their used iPhone 4 or 4S and trade it in for credit towards the iPhone 5, allowing them to get the new phone without putting money down.
If they bring in an old iPhone 4 or 4S, customers will get the iPhone 5 without having to make a $100 down payment. They will additionally receive a credit of $120 depending on the type and condition of the iPhone brought in. The rest of the cost of the phone can be paid off over the next two years at $20 per month. The credit can also be used towards a service bill or even accessories.
The iPhone 5 will be offered with T-Mobile’s contract-free Simple Choice Plan. Customers won’t have to sign a contract on the phone — instead they pay month-to-month for their cellular bill and can back out anytime. The plan starts at $50 and offers unlimited voice calls, texting and 500MB of data. Adding 2GB a month costs an additional $10 and unlimited data adds $20 more.
But because there is no contract and T-Mobile isn’t subsidizing the cost of the phone, buyers have to either pay the price of the phone either upfront or over two years. In this case, the iPhone costs $99 upfront, but customers who trade in an iPhone 4 or iPhone 4S will have that cost waved. The phone will still cost $24 per month.
Verizon, AT&T and Sprint offer the iPhone 5 for $199, but only offer a two-year contract, wedding customers to the carrier for two years.
T-Mobile, which has been the smallest of the major four U.S. carriers, announced last week that it gained subscribers in the first quarter of the year, it’s first such gain in years.
Copyright 2013 ABC News Radio
Parija Kavilanz, CNN
Paul R. La Monica, CNN
Jackie Wattles, CNN