T-Mobile Jump phone trade-ups are a costly trap for the impatient

By Joseph Hanlon

Last updated 11 July 2013

Moving to 'phase 2' of its un-carrier plans, T-Mobile has announced a new device program that let's customers upgrade to a new phone multiple times a year.

Calling the new scheme 'Jump', T-Mobile will let customers trade-up phones twice in each 12-month period, after a customer has been on the Jump plan 6-months. Old phones have to be traded in for new ones and signing on to Jump will add $10 a month to your bill.

This will be music to the ears of impatient tech lovers, but you really have to do the maths to figure out if its the right plan for you.

Jump will cost you $120 extra a year for the privilege, it doesn't make your new phones any cheaper, and you don't get to keep the old phone you've been paying for. Once you trade in your old phone, T-Mobile will wipe all remaining payments for that device and sign you on to a new handset repayment contract. It's as though you've been leasing the older phone.

For example, let's assume you switch phones twice, then decide to keep the third and pay it off until you own it. We'll pretend the three phones all cost the same: $99 upfront and $20 a month for 24-months. This will actually cost $30 per month including the monthly Jump fee. We'll also assume you trade-in phones every 12-months, though this could be longer or shorter.

Phone 1: $99 + $30 x 12-months = $459
Phone 2: $99 + $30 x 12-months = $459
Phone 3: $99 + $30 x 24-months = $819

Grand total = $1737

For $1737 you own the final phone and have had the use of the previous two. For the same money you could own all three phones outright, or be very close to it.

Alternatively, you could buy each phone, then sell it every 12-months on eBay or Craigslist and put the money you make towards the next device. The downside is that you need to have cash upfront, but at least you won't be paying a heavy premium for the convenience T-Mobile offers.