T-Mobile Delivers Contract Freedom for Families By Paying Off Early Termination Fees
Company marks 1st anniversary of Un-carrier revolution by offering to reimburse entire amount of customers` early termination fees when they switch from AT&T, Sprint or Verizon
LAS VEGAS - Jan. 8, 2014 - One year ago at International CES, T-Mobile US, Inc. (TMUS) threw down the gauntlet, promising relief for customers fed up with a broken, arrogant wireless industry. Since then, the company has delivered on its promise with a relentless barrage of Un-carrier industry innovations.
In its latest move, T-Mobile is eliminating one of the last remaining obstacles for individuals and families wanting to switch from AT&T, Sprint or Verizon to the Un-carrier by offering to pay off their early termination fees. With an eligible phone trade-in, the total value of the offer to switch to T-Mobile could be as high as $650 per line.
"We`re giving families a `Get Out of Jail Free Card,` said John Legere, president and chief executive officer of T-Mobile. "Carriers have counted on staggered contract end dates and hefty early termination fees to keep people bound to them forever. But now families can switch to T-Mobile without paying a single red cent to leave them behind."Customers have been flocking to T-Mobile for its no annual service contract Simple Choice Plan, industry-leading JUMP!(TM) upgrade program, unlimited global data at no extra charge in 100-plus countries, and most recently for Free Data for Life on every tablet - up to 200 MB of free 4G LTE data every month for as long as they own their tablet and use the registered device with T-Mobile. But Nielsen research suggests up to 40 percent[i] of families hold back from switching because of high early termination fees (ETFs), and a recent online poll conducted by GigaOM suggests that 78 percent[ii] would switch to T-Mobile if their ETF was paid. ETFs can cost as much as $350 per line. Multiply that two, three or four times for a family, and switching becomes an extremely expensive proposition.
"Carriers like to make you think you`re just signing up for two years with their family plans, but with staggered expiration dates and early termination fees, they`re really locking you in forever," said Mike Sievert, chief marketing officer for T-Mobile. "Now, families are free to switch without worrying about early termination fees. And by switching to T-Mobile, a family of four can save $1,880 over two years compared to an AT&T shared family plan[iii]."
Here`s how T-Mobile`s offer to pay off these fees works:
Starting tomorrow, customers from the three major national carriers who hand in their eligible devices at any participating T-Mobile location and switch to a postpaid Simple Choice Plan can receive an instant credit, based on the value of their phone, of up to $300. They then purchase any eligible device, including T-Mobile`s most popular smartphones, now priced at $0 down (plus 24 monthly device payments, for well-qualified customers). After customers get the final bill from their old carrier (showing their early termination fees), they either mail it to T-Mobile or upload it to www.switch2tmobile.com. T-Mobile then sends an additional payment equal to those fees, up to $350 per line. Trade-in of their old phone, purchase of a new T-Mobile phone and porting of their phone number to T-Mobile are required to qualify.
This offer to pay early termination fees provides families with a quick way to escape carrier contracts that have deterred them from pursuing a better and more affordable wireless experience with T-Mobile.
T-Mobile is also making it easier for its longtime customers to migrate to Simple Choice plans as well without incurring any migration fees. To qualify for this option a current customer under contract trades in their current device and purchases a new T-Mobile device and switches to Simple Choice. In addition to waiving the migration fee, T-Mobile will also eliminate the existing annual service contract for that customer`s line.With a Simple Choice Plan from T-Mobile, families start with one line at $50 per month for unlimited talk, text and Web with up to 500 MB of 4G LTE data. They can add a second phone line for $30 per month, and each additional line is just $10 per month. In short, a family could get four lines for just $100 per month (plus taxes and fees). The potential savings are so significant that if every single AT&T, Sprint and Verizon customer switched to a Simple Choice Plan, T-Mobile estimates they would save up to $20 billion [iv] collectively each year.
In addition to great family plan savings, individuals and families can also enjoy an incredible wireless experience thanks to T-Mobile`s rapidly expanding nationwide 4G LTE network- now the fastest[v] in the United States. For more information, visit the T-Mobile newsroom.
About T-Mobile US, Inc.:
As America`s Un-carrier, T-Mobile US, Inc. (NYSE: "TMUS") is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The company`s advanced nationwide 4G and expanding 4G LTE network delivers outstanding wireless experiences for customers who are unwilling to compromise on quality and value. Based in Bellevue, Wash., T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS. For more information, please visit http://www.t-mobile.com.
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T-Mobile USA Media Relations
877-281-TMUS OR 212-358-3210
[i] Family Barriers to Switching, Nielsen Mobile Insights, 2013
[ii] Online poll conducted Dec. 8 at http://gigaom.com/2013/12/20/poll-if-t-mobile-pays-for-you-to-switch-carriers-will-you/
[iii] Savings based on comparison of Simple Choice plan versus AT&T`s Mobile Share Value (20 GB) (4 lines) plan with monthly iPhone 5s payments.
[iv] Based on total postpaid subscribers on AT&T, Verizon and Sprint and average revenue per user in published Q3 2013 earnings reports.
[v] According to our independent analysis of the NetMetrics Reports provided by Speedtest.net
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Source: T-Mobile USA via GlobeNewswire