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T-Mobile to start selling iPhones on April 12

A sign for T-Mobile is seen in this undated file photo.

March 27, 2013 12:00:00 AM PDT
T-Mobile USA on Tuesday announced that it will start offering the iPhone 5 starting April 12.

The move is expected to be a big boost to T-Mobile, which has been losing customers to companies that sell the iPhone.

The announcement came just days after T-Mobile ditched its contract-based plans in favor of selling phones on an installment basis.

T-Mobile, the fourth-largest of the national U.S. phone companies, will charge $100 up front for the iPhone 5, then another $20 per month for two years.

The total monthly cost with service fees starts at $70 per month, a substantial discount to prices offered by bigger companies.

The Associated Press contributed to this report.