T-Mobile Now Offering New Contract-Free Pricing Plans

Telecommunication company T-Mobile has unveiled its new contract-free pricing plan. The plan allows users to remove the two-year contract altogether, as part of the company's "Uncarrier" initiative aimed at streamlining pricing. 

The Plan

The entry-level plan starts at $50 per month and includes unlimited domestic voice, unlimited domestic messaging, and 500MB of data (with mobile hotspot included). Additionally, users who surpass their 500MB limit are not charged overage fees. Instead, their data speeds are reduced for the remainder of the billing period.

A second line can be added to a plan for $30 more per month, with each additional line costing another $10 per month after that.

Users who want more data will be able to purchase it in 2GB increments, with an additional 2GB costing $10 more a month per line.  

The Downside

While T-Mobile's new pricing plan beats out the competition considerably, users will have to make a few concessions. The first is T-Mobile's mediocre coverage and a lack of LTE service; though that is about to change as T-Mobile's first LTE markets are set to go live later this month.

Finally, as with other contract-free plans, there are no subsidies from the carrier; meaning users will have to shell out full price for their handsets, and with the new Apple iPhone 5 starting at $650, the investment can be quite pricy.