T-Mobile to Pay Other Carriers’ Early Termination FeesBy: Sean Patterson - January 8, 2014
Late last week AT&T announced a plan to pay T-Mobile subscribers up to $450 to switch to AT&T. T-Mobile CEO John Legere’s criticisms aside, it now seems that AT&T was getting out ahead of a new T-Mobile plan that was announced at the Consumer Electronics Show (CES) today.
During the T-Mobile CES presentation today Legere announced a plan to pay off other carriers’ mobile subscribers’ early termination fees. The service begins tomorrow, when AT&T, Verizon, and Sprint customers can switch to T-Mobile and receive up to $350 toward their early termination fees, as well as up to $300 for their traded-in phone.
As the plan stands, new T-Mobile customers will have to hand over their “eligible devices” from their previous carrier. This will net them up to $300 in credit for each device, depending on how T-Mobile values their particular phones. Customers will then have to purchase a new device through T-Mobile (which is now paid off over 24 months) as well as sign up for a “Simple Choice” plan. Finally, customers will have to either mail or upload a copy of their final bill from the carrier they just left and T-Mobile will pay the early termination fees listed on the bill, up to $350 for each line terminated. In short, T-Mobile will pay up to $650 for each of five line and devices switched in this way.
“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.”