New T-Mobile Customers Can Now Swap Smartphones Anytime They Want

T-Mobile said Thursday it was adding a new component to its two-year-old Jump smartphone upgrade plan, giving customers the option of removing the $10 monthly fee and allowing customers to upgrade whenever they want.

The plan, called "Jump! On Demand" also eliminates the insurance component of Jump. Customers can add it back though, with an additional $8 a month.

The plan kicks off June 28 with a slight catch. In order to join the program, customers need to purchase a new smartphone, so existing T-Mobile customers not already on Jump can't walk in and demand an upgrade.

Initially, only select flagship smartphones like the Apple iPhone 6, Samsung Galaxy S6 and S6 Edge, and LG G4 will be available for upgrades.

"This is a really big move for us," Chief Operating Officer Mike Sievert said in an interview. "Providing this kind of flexibility is expensive and difficult, but we think it's worth it."

"Jump on Demand is T-Mobile's way of getting into the device-leasing business while simultaneously satisfying customers who desire easier, more frequent smartphone upgrades," said Tammy Parker, an analyst at Current Analysis.

In addition, T-Mobile is also offering a promotional offer of $15 a month for the base model of the iPhone 6. The deal goes after Sprint's own $20-a-month plan.