No-Subsidy Mobile Phone Plans Gaining Steam, With T-Mobile Leading the Way

In the last nine months, some 28 million US customers opted to pay one of the major carriers full price for a smartphone rather than sign up for a two-year contract to get a discounted model, according to a new study.

Of those customers, an estimated eight million switched carriers to get one of the new-style plans, with the lion’s share of the switchers (5.1 million) of those going to T-Mobile, according to research being released later by Consumer Intelligence Research Partners.

Typically, such purchase options come with lower-cost monthly service, the option to upgrade sooner or both. T-Mobile has shifted entirely to such plans, while AT&T offers no-subsidy options with its Next and Mobile Share Value programs and Verizon has its Edge program. Even where customers have a choice to get a subsidized phone, the financing programs appear to be gaining steam.