They didn't mention, but engadget did say it's $20 for other phones. Yes, it's a total rip-off. It's paying for nothing. What they're saying is that they're not really giving you the bandwidth you're paying for when you grab the initial plan. Or at least they don't expect you to use the bandwidth they claim is available. They advertise "unlimited" but it's not. Then I'm sure if you used 3 or 4GB consistently every month they'd soon cap you lower or kick you off.

Why don't consumer watchdogs and other groups stop this fraudulent advertising practice?

In Canada we've been seeing false advertising about mobile pricing for two decades.

The issue with T-Mo is that the iPhone's chipset doesn't support its frequency. They'd need to change over to what is it now, 5 bands total?