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T-Mobile USA to sell iPhone from April 12

  • T-Mobile USA announced on Tuesday it will start selling Apple’s iPhone from April 12.

    As the last of the major national operators to sell the smartphone, T-Mobile USA is launching the iPhone after it rejected this week device subsidies and two-year service contracts used by its bigger rivals.

    The number four U.S. mobile provider hopes its new approach will set it apart from Sprint Nextel, AT&T Inc and Verizon Wireless and Vodafone Group.

    U.S. mobile operators have traditionally subsidized phones in exchange for tying customers into lengthy contracts. However, they do not disclose how much of the monthly fee covers the device, a practice that T-Mobile USA has slated as lacking transparency.

    T-Mobile will offer the iPhone 5 for an upfront payment of $99.99 followed by 24 monthly payments of $20.

    Its rivals charge $200 upfront to customers who sign a two-year contract.

    According to industry analysts, T-Mobile customers could stand to pay nearly $1,000 less over two years than they would for comparable services at AT&T.