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The Boston Globe

Business

T-Mobile to ditch 2-year cellphone contracts

NEW YORK — T-Mobile USA, the struggling number four cellphone company, is ditching plans centered on familiar­ two-year contracts in favor of selling phones on installment plans.

T-Mobile is the first major US carrier to break from the contract model. The company changed its website over the weekend to begin selling the new plans. It plans to lay out the rationale on Tuesday at an event in New York, which could also reveal when T-Mobile will start selling the iPhone.

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