T-Mobile is hoping to lure more customers to its network by offering a trade-in deal in which users with an old iPhone can get a new iPhone 5 without a down payment.
The wireless carrier Wednesday announced that it will sell users who trade in their iPhone 4 or iPhone 4S -- and sign up for its new Simple Choice Plan -- an iPhone 5 for no money down and 24 payments of $20.
The special offers customers a savings of $100, but it could be more depending on the condition of the device they trade in. T-Mobile said it will give users with old iPhones in very good condition credit for as much as $120. That credit can be used with T-Mobile, either as part of the monthly payment or to buy accessories.
The Seattle-based carrier is rolling out the special in hopes of attracting new customers and luring some away from rival networks. The T-Mobile iPhone 5 is set to launch Friday and will be the first major device released since the company dropped service contracts and rolled out its Simple Choice Plan.
The plan, which users have to sign up for to get the no-down-payment iPhone 5, includes unlimited talk and text and half a gigabyte of high-speed Internet data for $50 a month. Users can choose to pay an additional $10 a month for a total of 2.5 gigabytes of high-speed data or $20 for unlimited high-speed usage. Adding a second line costs $30 a month, and each line after that costs $10 a month.