I'm saying to get the price of the phone for free requires you to sign up for the $90 unlimited plan. That is the fine print. That is why the price is low. You can't get the phone for free if you sign up with the $40 plan.
You can read about it here if you still don't understand. Nexus 4 is free on T-Mobile until Sunday, but it's still a bad deal
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Ah, I see. Thanks for the clarification. So then the price of the phone would come out to $290 (maybe a little more with taxes). Still worth it IMO.