With the rising cost of modern smartphones, many consumers solely rely on financing via their carrier to make new tech accessible. Most major carriers offer zero percent interest on monthly payments for the phone, making financing a solid alternative for those who want to spread out payments over an extended period instead of paying the full cost of their new flagship upfront.
EIPs (equipment installment plans) for 24 months (two years) used to be the norm up until the summer of 2021. That’s when AT&T added a 36-month alternative. Verizon followed suit soon after.
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Paying off your new Verizon phone will now take 3 years
AT&T payment plans went up to 36 months last year
T-Mobile is the only carrier giant that hasn’t moved onto the 36-month installment plan boat, but that could soon change.
According to internal documents viewed by The Mobile Report, 36-month T-Mobile EIPs could be on the way, at least for some devices that the carrier giant has available for financing. According to the report, the internal leak was later corroborated when some Galaxy Watch devices on the carrier’s website “briefly” displayed the 36-month financing option. As of writing, all wearables listed on T-Mobile’s website only offer 24-month financing.
There are benefits for both sides
Source: The Mobile Report
It isn’t entirely clear if T-Mobile is planning to launch the extended financing duration for all devices, or only for select ones. It’s also unclear if users will have the option to opt for the 24-month plan, or if they’ll be forced onto the 36-month alternative. Users will, of course, have the option to pay off their device early and lose their promo credits.
The change makes sense. For users, it gives them the option to spread out their new flagship’s payments across a much wider timeframe, essentially lowering the monthly installment cost. T-Mobile, on the other hand, gets to retain customers for a whole year longer, reducing its ‘churn’ and squeezing out profits via its plans.
Considering the internal document leak, and the fact that the 36-month installment option made its way to T-Mobile’s website, it’s clear that the carrier is at least experimenting with the idea. If and when it materializes is yet to be seen.
