T-Mobile Delivers Contract Freedom for Families By Paying Off Early
Company marks 1^st anniversary of Un-carrier revolution by offering to
reimburse entire amount of customers’ early termination fees when they switch
from AT&T, Sprint or Verizon
2014 International CES
LAS VEGAS -- January 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
“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
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
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-Mobile newsroom.
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
^i Family Barriers to Switching, Nielsen Mobile Insights, 2013
^ii Online poll conducted Dec. 8 at
^iii Savings based on comparison of Simple Choice plan versus AT&T’s Mobile
Share Value (20 GB) (4 lines) plan with monthly iPhone 5s payments.
^iv Based on total postpaid subscribers on AT&T, Verizon and Sprint and
average revenue per user in published Q3 2013 earnings reports.
^v According to our independent analysis of the NetMetrics Reports provided by
Photos/Multimedia Gallery Available:
T-Mobile USA Media Relations
877-281-TMUS OR 212-358-3210
Press spacebar to pause and continue. Press esc to stop.