Skip to main content

NEW YORK (

TheStreet

) -

T-Mobile

is hoping to shake-up the mobile phone market with a "no contract" monthly plan aimed at attracting the millions of customers frustrated by being lock-into a multi-year contract with a less than benevolent service provider.

But, there is a catch. "No contract" plans mean you pay full price for your phone as it's done in many parts of the world. No more paying for that shiny handset as part of your monthly fee. T-Mobile is betting that the "no contract" plan can bolster the company in the battle for users with Verizon, Sprint and AT&T.

To win some media attention, T-Mobile is planning a media event today to discuss the completion of their merger with

MetroPCS

(PCS)

and the start of their next-generation LTE/4G services in at least two cities.

Also see: Tax Audit Horror Stories: What To Do When The Unthinkable Strikes

The merger recently won approval from U.S. and European regulators, among the final steps in a process that is likely to be completed by mid-April when MetroPCS shareholders meet to vote on the deal. The result will be a new, publicly-traded company with Germany's

Deutsche Telekom

owning nearly 75%.

Shares of MetroPCS slipped 0.5% to $10.55 in early trading.

As for the switch from their current 4G technology to LTE, the merged company will gain new spectrum allowing it to reconfigure portions of T-Mobile and MetroPCS' current frequency bands to handle more advanced technologies.

Scroll to Continue

TheStreet Recommends

The first two cities to get super-high-speed LTE data capabilities are expected to be Kansas City and Las Vegas. T-Mobile has also been testing LTE here in New York with positive results being reported. The

Blackberry

undefined

Z10 and Samsung's Galaxy Nexus II phablet (part phone, part tablet which runs on

Google's

(GOOG) - Get Alphabet Inc. Class C Report

Android OS) are expected to be the first two LTE-capable handsets announced.

Also see: 10 Ways Your Credit Can Betray You

As for new service pricing plans, according to a page which

just appeared

on T-Mobile's Website it looks like customers with individual and family plans will be able to choose from these new offerings. All are expected to offer unlimited talk, text and Web access plus at least 500 MB of high-speed data at $50 per month. Larger "buckets" of high-speed data will be available in 2 GB increments as well as a totally unlimited everything plan are available at extra cost, accordeing to T-Mobile. Family plans of multi-handsets will be discounted.

But, remember the catch: the full-priced phone. U.S. consumers aren't used to seeing real, unsubsidized prices of cell phones and could reject the new pricing schemes. Call it sticker shock. It's a big gamble on the new company's part - one that

AT&T

(T) - Get AT&T Inc. Report

,

Sprint

(S) - Get SentinelOne, Inc. Class A Report

and

Verizon

(VZ) - Get Verizon Communications Inc. Report

will be watching very closely.

Also see: Cramer Greets the 21st Century: Airbnb

We'll be in attendance at tomorrow's T-Mobile event and will let you know exactly what they have to say about the new company's next steps.

--Written by Gary Krakow in New York.

>To submit a news tip, send an email to:

tips@thestreet.com

.

Gary Krakow is TheStreet's senior technology correspondent.