T-Mobile (NYSE: TMUS) reported it is eliminating one of the last remaining obstacles for individuals and families wanting to switch from AT&T (NYSE: T), Sprint (NYSE: S) or Verizon (NYSE: VZ) 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 USD650 per line.
T-Mobile offers a no annual service contract Simple Choice Plan, industry-leading JUMP! 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 percenti of families hold back from switching because of high early termination fees (ETFs), and a recent online poll conducted by GigaOM suggests that 78 percentii would switch to T-Mobile if their ETF was paid. ETFs can cost as much as USD350 per line. Multiply that two, three or four times for a family, and switching becomes an extremely expensive proposition.
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 USD300. They then purchase any eligible device, including T-Mobile´s most popular smartphones, now priced at USD0 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 USD350 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.
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.
Based in Bellevue, Wash., T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS. For more information, visit http://www.t-mobile.com.