T-Mobile about to end carriers contract “slavery,” by paying off early termination fees



T-mobile has been turning heads a lot recently, with its series of phone contract revolutions, that it’s calling Uncarrier. This was part four of it’s game changing strategy and where better to announce it than at CES 2014. This year’s CES has brought our attention to a lot of new and exciting developments and although this isn’t necessarily a tech breakthrough as such, it’s still got everybody talking.

T-mobile is the fourth largest carrier in the US market but, after this latest announcement they could move up a few places in the league. In essence the announcement is that any customers on AT&T, Sprint or Verizon wanting to end their contract early will have their termination fee (Up to $350) reimbursed upon switching over to T-mobile.

I’ts not as straight forward as all that though, first you have to trade in your old handset from the previous contract and it can’t just be any old phone, it has to be from a list of eligible devices chosen by T-mobile, you’ll then sign up to their Simple Choice Plan and depending on the value of the phone you traded in, you’ll receive an instant credit of of up to 300 bux, which will pay towards your new device. Then there’s a little bit more work if you want that early termination fee reimbursed, first up you’ll have to send a copy of your final bill detailing the exact amount you paid to terminate the contract, then T-mobile will transfer that amount into your account as long as it doesn’t exceed $350.

This is also available if you have multiple accounts through a family account, and is forecast to save the average family of four $1880 over a typical 24 month plan. This is pretty evolutionary stuff, hopefully it’ll force other carriers to follow suit, pushing prices down in the process.

“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.”

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 (proven) in the United States.