I'm getting frustrated with the way T-Mobile is handling their prepaid, they seem to be trying to push people away from prepaid. T-Mobile is typically marking prices up on their Prepaid phones (at least on their website) by $50, or if you buy them outright without a plan. Additionally, again on their website, they are also including a $50 card, which they charge an additional $50 for -- pushing the price up by $100 vs. buying the phone outright on a postpaid plan. Fortunately, other vendors (Walmart, Amazon, HSN, etc.) tend to be charging a price closer to what the phone should sell for. The issue, then, is that so few phones are available to be purchased outright through these vendors.
Ultimately, I think this is going to hurt T-Mobile. AT&T is starting to find ways to compete more effectively against T-Mobile, pricing the GoPhone smartphone plans competitively with T-Mobile (though with less data) and also starting AIO. For example, you can buy a GoPhone plan for $60 that is roughly the same as the T-Mobile $60 plan, just that it only comes with 2 GB of data rather than 2.5 GB. They also have a $40 plan that contrasts with the $30 T-Mobile plan; it has 500 minutes of talk but only 200 MB of high speed data -- but I think that likely fits more people than the T-Mobile $30 plan that has only 100 minutes but 5 GB high speed data. And not only does AT&T have the
520 at $99 for GoPhone, they are also now selling the
Lumia 620 through AIO for $99 (and the 620 has a choice of 4 colors).
It is also worth noting that the 520 on AT&T already has both GDR2 and the Amber updates, despite being cheaper.