T-Mobile CEO John Legere announced today the company’s plan for Uncarrier 4.0 at the Consumer Electronics Show in Las Vegas. Starting tomorrow, T-Mobile will offer new customers coming from AT&T, Verizon, and Sprint up to a $300 credit to trade-in their phone with the purchase of a T-Mobile device and a Simple Choice Plan. T-Mobile will also cover the cost of the early termination fee charged by the three major carriers for breaking contract by crediting up to $350 per line after sending in your last bill from your old carrier…

Calling the initiative a ‘get out of jail free card,’ the move is intended to take the burden off families locked into staggered contracts with other carriers interested in being T-Mobile customers. CEO John Legere clarified during the keynote that its promotion for customers to switch to T-Mobile from other carriers would not be temporary but instead permanent. The company also boasted faster LTE data rates and other improvements as well. (Full press release below:)

T-Mobile Delivers Contract Freedom for Families By Paying Off Early Termination Fees

LAS VEGAS — Jan. 8, 2014 — One year ago at International CES, T-Mobile US, Inc. (NYSE: 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!™ 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-Mobilenewsroom.

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.

CES coverage brought to you by Belkin

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

10 Responses to “T-Mobile encourages customers to switch with new phone buyback program, ETF credit”

  1. Winski says:

    As ANOTHER boot lands on Cinningham’s face….

  2. So if I turn in my phone, tmobile will give me ONLY eft credit? Or both etf credit and credit towards a new device?

    • Ernie Flores says:

      They give you some credit depending on your phone. However for my iPhone they said they would only give about 244 for 32gb and 248 for 64gig. Yep that right. Thats a bit low for an unlocked phone.

    • yuniverse7 says:

      they will give upto $300 in phone credit plus upto $350 in EFT credit for total of UPTO $650.
      If you have older phones such as iPhone 4s or perhaps even 5, this would be a great deal, but for 5s, not so much. you have to turn in your device as a requirement.

  3. seriously considering this, i have 4 phones with att, has tmobile service improved?

  4. exlonline says:

    This looks good up front, but the plan requires a $25/mo per phone fee to purchase the phone. That cost gets a 4 line plan higher than what we pay with AT&T. There is no phone subsidy with this offer. I guess I’m not seeing the benefit. The release says $100 for a family of 4 which is true for service, but that doesn’t include the extra $100 in phone payment costs for two years…

    • I was just at the T-Mobile store, I don’t see anything about a $25/mo per phone fee. I am able to sign up five 5s at the base plan of $110 (5 lines with 500MB each, $50 + $30 + $10 + $10 + $10) after trading in my 4S’s and 5’s from Verizon. I could shift any of the lines up to 2.5GB for $10 more or Unlimited + 2.5GB tethering for $20 more.

      • Unless you buy the new phone outright from T-Mobile, you finance it through them at $17-$25/month depending on which phone you get. That is the monthly cost for the device, not the service plan.

  5. Unless you do the one time payment you have to pay $25 per month for the phones. I would like to see this as a better option but it would raise my bill over $50 per month and not have as good of coverage as AT&T. Even the one time payment option saves me minimally. I am looking at equal data plans of course if I went with 500mb of data it would be a better deal $ wise, but 500mb is nothing in these data taxing times.