T-Mobile Woos Customers With Free Phones, Shorter Contracts

  • Verizon, AT&T have moved to 3-year, no-payment phone contracts
  • Lengthy contracts tied to perks make switching a hassle

A T-Mobile store in New York.

Photographer: Yuki Iwamura/Bloomberg
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T-Mobile US Inc. is offering to buy mobile subscribers out of their three-year contracts with rival carriers, tossing in a new phone and promising a shorter commitment in an effort to lure new customers.

The US’s second-largest wireless company says it will pay off the phone contracts for people willing to switch their service. As part of the limited time promotion, T-Mobile will also provide them with new phones on a 24-month, no-payment plan.