T-Mobile has now come up with a new incentive to ‘woo’ customers by exchanging older iPhone’s from other carriers for a new one. By availing the trade-in program from the carrier, customers can avoid putting money down for a new iPhone 5, additionally they could also enjoy the reduced monthly rate.

iPhone 5, T-mobile

The trade in offer of T-Mobile will be available up to Father’s Day i.e. June 16. The offer comes up with a Simple Choice Plan, which will provide maximum $120 credits subject to trade in value of the devices. The subscriber can use these credit points to pay their monthly bill, or buying accessories and other devices.

T-Mobile has designed its offering to attract customers from the rivals and retain those who are already the customers of T-Mobile. The new user who subscribes for the T-mobile service will have to pay $99 upfront and $20 per month, in addition to a service fee for 24 months. This will cover the cost of the device.

Rival AT&T (NYSE:T) customers would not go for T-Mobile connection, but the case may be different for the Verizon Wireless or Sprint Nextel Corp (NYSE:S) subscribers because the iPhone they use are not compatible with the T-Mobile network. The iPhone 5 will collect $168 bill credit or $7 in savings every month, which would be equal to $13 charge other than service fees.

T-Mobile has long been making efforts to increase the number of customers by providing different plans. The company rolled out Simple Choice Plan last month in which the starting rate was $50 per month for unlimited talk, text and web with 500 MB of 4G data. The choice was given to subscribers to add 2GB of 4G data by paying $10 per line or have access to unlimited 4G data by paying $20 per month per line.

T-Mobile has a customer base of 34 million customers in the United States towards the end of the first quarter. The telecommunication company holds the fourth position and is the largest operator in the country after AT&T, Verizon and Sprint. By offering iPhone 5, T-Mobile is looking forward to narrowing its losses, retain customers and earn profit to ensure its comeback.

The shareholders of Metro PCS Communications will exercise their vote on the potential merger with T-Mobile on Friday. The deal has been passed by the U.S. Federal Communications last month.