Arabian and unlimited everything CHEAP!

Ok. So there is this arabian guy around my town who gives out cell phone plans at 50 dollars for unlimited everything. Any kind of phone, even new phones t mobile wants you to have a contract for. Their unlimited everything plans are only for contract and if they aren't they are more than 50 especially for new users with their company. His business doesn't sound legal to me. Is he paying t mobile an amount of money to work like that or is he doing something else. I am just wondering for personal knowledge because if he isn't doing it legally that means someone else could get over on a cell phone company..... it sounds to me as if it is illegal because t mobile is in fact making less money and they wouldn't like that at all.

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I have a few friends that use him. They are getting by. Also, he re-uses stolen/used phones.

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