Seems simple enough- just switch from your current carrier to T-Mobile and the people at T-Mobile will be so thrilled to get your $50 a month that they'll GIVE you a thousand-dollar iPhone ("on us," as they put it.) What's not to like? Better take advantage of the deal before T-Mobile wakes up and realizes that they are paying a very high price just to add a new customer and it will literally take YEARS for them to break even on the deal, if you even stay with them that long....
Oh, wait. The phone is a basic 17, and you can get UP TO $830 in CREDITS when you sign up, AFTER you pay the sales tax on the full retail value of the phone....and the credits will come with each phone bill, locking you into your contract with T-Mobile, as if you cancel before the phone is paid off (yeah, by now I hope you've figured out that you aren't actually getting a free phone, just a phone on a monthly installment plan) you'll be handed a bill for the balance...and let's not forget the $35 connection charge, $35 being a number decided in a boardroom that has absolutely NOTHING to do with the actual cost of "connecting" you to T-Mobile's service (that actual cost is, coincidentally, NOTHING.)
In short, get a stripped-down phone at a discount which goes up in proportion to the number of bells and whistles you add to your service. This is a pretty blatant bait-and-switch that probably sounds good to Stupid People but really ought to be obvious to anyone who has ever seen the inside of a High School.
Let's get one thing straight- no company is giving anything away, ever. That's not how Capitalism works- hell, it's not how Economics works. If T-Mobile is ready to hand me an iPhone, T-Mobile has figured out how to get me to pay for it in a way that makes me look like I'm getting something for nothing. Except that I don't buy Apple products so I'm not playing- plus, I've seen the inside of a High School.