T-Mobile sees boost after eliminating contracts

T-Mobile’s move to a contract-free environment seems to be paying off. The wireless provider released its first quarter results this week, and says its net customer base grew by 579,000 unbranded and 3,000 branded subscribers. It’s a big increase over this time last year, when the company was reeling from the loss of 349,000 subscribers.

And the no-contract trend may be gaining momentum. Verizon CEO Lowell McAdam says that his company is open to the possibility of eliminating contracts and phone subsidies, and that a switch to a new model would be “pretty easy.” Verizon already allows customers to purchase a phone – paying full price up front – with no contract, but the company doesn’t advertise the option at the same level as its traditional subsidized plans.

Major changes to the wireless landscape seem to be on the minds of many carriers. In January, AT&T executives admitted they were considering eliminating phone subsidies in exchange for lower service rates.