The MyTouch 4G Slide is one of TMobile's most recent smartphones to hit the market. (Photo courtesy TMobile)

T-Mobile introduced on Wednesday a new financing plan for purchasing devices over an extended period, as well as a price reduction for one of its smartphone plans.

With T-Mobile’s new layaway plan, customers make an upfront down payment on a particular smartphone, with the amount varying depending on the model. Afterward, customers pay a monthly EIP — or equipment installment plan — typically anywhere between $5 and $15 monthly, again depending on the phone purchased.

Additionally, T-Mobile is expected to announce a $20 price drop for its mid-tier smartphone plans, according to information obtained by CNET. The plan includes unlimited monthly minutes, SMS messages and data, with escalating prices for larger caps on high-speed data access. If you exceed your monthly data amount, T-Mobile throttles your speed — essentially slowing your connection down — until the next billing cycle occurs. Unlike AT&T, however, the company doesn’t charge overage fees for exceeding your monthly data download limits.

T-Mobile’s fluctuating pricing structures keep the company a competitive force in today’s wireless carrier landscape. AT&T, Sprint and Verizon all offer similar plans to T-Mobile’s, but at ten dollars more than T-Mobile’s supposedly forthcoming one. T-Mobile also takes the lead of many lower-cost cellular services like Metro PCS with its installment plan. It’s essentially a compromise for customers who don’t want to sign up for a plan, but also don’t want to pay for an unsubsidized phone at full price (usually upwards of $400 to $600 for today’s smartphones).

Of course, all of this is subject to change. In March, AT&T submitted its bid to buy Deutsche Telekom’s T-Mobile, which would make AT&T the largest wireless provider in the United States if the acquisition were to be approved by the FCC. Sprint is railing against the deal, which would place Verizon squarely in second place for nationwide wireless services, marginalizing Sprint’s market presence. If the deal goes through, one could potentially expect pricing plans to change dramatically.

T-Mobile breaks down savings on its new plan compared to that of its competitors below:

T-Mobile's data chart offers a breakdown of a sample plan, and savings compared to other carriers. (Photo courtesy TMobile)

T-Mobile’s new plans will launch on Sunday, July 24, for U.S. customers. The lower rate wireless plans will come with the usual stipulation of agreeing to a two-year contract.