T-Mobile won't just pay your ETF — they'll pay off your phone as well
T-Mobile announced this plan as part of their "Uncarrier 9.0" press event. It says that this new program is for phone or tablet customers who bought their devices on AT&T Next or Verizon Edge plans.
This new program is similar to one announced a few days ago by Sprint. It is now offering customers who switch from another carrier a way to reimburse them of both their termination fees and any remaining phone payments.
In addition, T-Mobile says that all current promotional plans have now become permanent. For example, all 5 million customers who signed up for the 4 lines for $100 a month with a temporary 2GB data plan will now get that same data amount from now on. Any price that T-Mobile customers are paying for a caped data plan won't go up. Finally, T-Mobile said that their unlimited plans won't change for at least two years.
T-Mobile Unleashes Two New Industry-Rocking Moves With 'The Un-contract' and 'Carrier Freedom'
Contracts are back at T-Mobile, but this time the company is the one signing on the dotted line.
The Un-carrier™ now guarantees your plan pricing.
In addition, T-Mobile will now pay off your device when you switch to the Un-carrier.
Bellevue, Washington and New York, New York — March 18, 2015 — John Legere just can't seem to leave well enough alone. Today, during an event held to announce Un-carrier 9.0 − Un-carrier for Business − the President & CEO of T-Mobile (NYSE: TMUS) unveiled not one but two new major Un-carrier™ initiatives for consumers as well.
First, with T-Mobile's new 'Un-contract,' customers will now have more certainty in their wireless pricing than ever before. Consumers and businesses alike can now rest assured that their Simple Choice rate plan won't go up as long as they're a T-Mobile customer and keep their plan − and even customers with unlimited 4G LTE will lock in their rates for a minimum of two years. The Un-carrier also launched 'Carrier Freedom™,' a new move where T-Mobile will now cover all outstanding phone and tablet payments up to $650 per line when customers switch to T-Mobile − freeing 29 million people currently trapped at AT&T, Sprint or Verizon to make the move.
The Un-contract Wireless customers don't trust the carriers, and they have good reason. Nearly half of consumers and business owners surveyed say they've been offered a good deal by the carriers only to have their rates raised later. And, more than two-thirds of consumers and business owners believe their wireless rates will go up in the next two years.
With the Un-contract, T-Mobile is putting an end to price uncertainty − and flipping the very idea of the carrier contract on its head. Now, we sign the contract, you get the freedom.
"We're the Un-carrier. Everything the carriers do, we un-do," said John Legere, president and CEO of T-Mobile. "The other guys have been throwing out all kinds of desperate, short-term promotions to suck you in and lock you down − only to jack up rates later. We're not playing that game. The Un-contract is our promise to individuals, families and businesses of all sizes, that − while your price may go down − it won't go up."
Traditional wireless industry contracts are all take and no give. They lock you in and give you nothing in return. The carriers can do just about anything they want − including changing your plan and even raising your rates.
By contrast, the Un-contract is all give, no take. You can keep your existing Simple Choice plan and we won't raise your rates. As part of this commitment, customers on existing Simple Choice promotional plans − like the Un-carrier's ultra-popular 4 lines for $100 with up to 10 GB of 4G LTE data − can keep them for as long as they're T-Mobile customers. And, if you have an unlimited 4G LTE plan, you can rest assured your rates won't change for a minimum of two years. You can even change to other qualifying plans and The Un-contract guarantee kicks in again. And you can even leave when you like.
It's all part of T-Mobile's efforts to eliminate restrictive service contracts from the wireless industry and give customers more freedom and flexibility.
The Un-contract kicks in automatically on March 22 for all existing T-Mobile Simple Choice customers. No crazy strings, no hoops to jump through, no hidden fees, no BS.
Carrier Freedom Second, T-Mobile launched Carrier Freedom, a new move designed to free the 29 million people currently locked in to a device payment plan or lease with the old-school carriers by covering their outstanding device payments when they switch to T-Mobile.
"The carriers will do everything they possibly can to lure you in − then screw you out of every possible penny while you're locked in," added Legere. "Now, the millions who feel stuck with AT&T Next and Verizon Edge can jump to T-Mobile at no risk. Carrier Freedom is the next phase in bringing more choice and flexibility to this broken industry."
For wireless customers, the single biggest obstacle to switching providers is cost. And last year, T-Mobile took a wrecking ball to that barrier with its Contract Freedom program, offering to pay every penny of the carriers' punitive early termination fees (ETFs). The move helped catapult T-Mobile into the fastest growing wireless company in the U.S. with more than 8.3 million net new customers last year.
Now, with Carrier Freedom, T-Mobile is extending this radically simple concept to cover outstanding phone or tablet payments for those who bought their device on AT&T Next, Verizon Edge or other carrier equipment installment plans (EIPs) or leasing plans. The move frees 29 million more people locked into equipment payment plans or leases with the other guys to switch to T-Mobile. Now, consumers and businesses feeling stuck with their carrier − because of contracts or phone payment plans or both − can make the move to T-Mobile without worry.
To take advantage of Carrier Freedom, a customer simply ports their number to T-Mobile's wildly popular Simple Choice plan, trades in their smartphone or tablet and buys one of our hot new smartphones. They'll get the trade-in value right away, and a prepaid card with the balance of additional outstanding phone payments after the trade-in value when they submit the carrier's bill to T-Mobile − up to $650 total per line on up to 10 total lines. Businesses with more than 10 lines also can also take advantage of Carrier Freedom, with bill credits up to $100 per line after the 10th line.
Learn more about Carrier Freedom and The Un-Contract.
Un-contract guarantee excludes, fees, & other (e.g., "pay-per-use") charges. EIP Pay Off: qualifying credit & postpaid service, with trade-in in good condition req'd. Pay off paid as device trade-in credit & prepaid card for remaining device balance (including valid exercise of lease purchase option, if applicable), minus trade-in credit. Sales tax on device excluded. Validation req'd. One offer per line. $100 business payout once per account as bill credit (includes trade-in value). See T-Mobile.com for offer and other details.
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I have been writing professionally about technology and gaming news for 14 years.