How does T-Mobile let you upgrade earlier?

[Xboxman]

Hello, I was watching some of the new T-Mobile ads on youtube before getting to my video and one said that instead of having to wait at least a year and a half to upgrade, you can upgrade earlier. I am happy with my current carrier but I am also curious how this works. Also the 99 dollar price points on the newest smartphones, how does this work? Thanks

 

[TishaS]

As for the 99 dollar smartphone. Let's say the phone you want cost $629.99 without a contract, but they are offering it for $99 if you sign a two year contract. To get it for $99 you have to sign a two year contract, pay the $99 up front, and you will pay a extra $20 a month on you bill for the monthly installment for the cost of the phone. In other words your going to pay full price for the phone you just don't have to pay it all at once. So your monthly bill is your service charges + $20 (your phone's monthly installment cost).
But they also have a classic plan where you pay more for your phone and don't have to pay a monthly installment for the phone. So you want get the big discount of $99 for the latest smartphone.

As for the upgrading early. You can only upgrade if your a existing customer. They have a pay monthly plan where you pay installment on the phone that you get with them. The monthly installment are added to you monthly bill. Its like no higher than 20 dollars a month until you pay off the balance of the phone. But if you want to upgrade early you will pay 25% less a month for the phone you already have (cause you know you have to finish paying for it) and then start the installments on your new phone. So basically your paying your monthly service bill + 25% of 20 dollars (your old phone installments) + the new installment for your upgrade.