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US cell carriers eye no-contracts model in wake of T-Mobile's move

by Take Two®

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A T-Mobile connected iPhone 5 is shown on display after John Legere, CEO and President of T-Mobile USA made an announcement during an event about new contract pricing on March 26, 2013 in New York City. Legere confirmed that T-Mobile will start carrying the iPhone 5 starting April 12, under it's new no-contract plan called The Simple Choice, with the customers paying $99 down, then $20 a month for 24 months, on top of the monthly service plan. John Moore/Getty Images

 T-Mobile made headlines recently when they announced a radical shift its mobile plans: No more contracts ... I repeat, no more contracts

The carrier, currently fourth behind the likes of AT&T, Sprint and Verizon, will allow customers to use a phone they already own. If they want a new model, they'll free to buy the phone outright or pay it off in installments. The idea might be catching on with other providers 

David Lazarus is a business columnist for the Los Angeles Times.

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