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T-Mobile gets rid of contracts for cellphones

March 25, 2013

NEW YORK -- T-Mobile USA, the struggling No. 4 cellphone company, is ditching plans centered on familiar two-year contracts in favor of selling phones on installment plans. T-Mobile is the first major U.S. carrier to break from the contract model. The company changed its website over the weekend to begin selling the new plans. It plans to lay out the rationale for the change on Tuesday at an event in New York, which could also reveal when T-Mobile will start selling the iPhone.

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