Previously, we covered the rumor that T-Mobile will be switching to a no-contract based business model. This was proven to be true as T-Mobile has announced their new no-contract plan that will also allow users to either pay full price for the iPhone or pay $99 down (in the case of the iPhone 5 16GB) and sign up for a 20-month payment plan of $20 per month in order to pay off the rest of the phone. This will total out to be $599 for the iPhone in the end. This contract will only apply to payment towards the phone and will not include the wireless service.
Instead, the wireless service is depicted by the user's choice of new plans which includes unlimited talk and text plus 500MB of 4G data for $50. You can get the same plan with 2GB of data for $60, and $70 gets you unlimited data. This iPhone deal will be officially launching on T-Mobile April 12th.