T-Mobile Will Cover Switching Fees To Steal More Customers From AT&T, Sprint, And Verizon

Posted: Jan 8 2014, 4:11pm CST | by , in News

 

T-Mobile Will Cover Switching Fees To Steal More Customers From AT&T, Sprint, And Verizon
Photo Credit: Forbes
 

T-Mobile, the self-proclaimed “UnCarrier,” has a lot to crow about after a banner 2013 that saw the wireless carrier add 4.4 million customers. On Wednesday afternoon from CES, T-Mobile announced plans to build on that success by stealing more customers from incumbents AT&T, Verizon, and Sprint with a new plan: cover early termination fees for switchers.

T-Mobile is hoping that covering the switching fees will release customers who want to leave their carrier but don’t want to trigger the additional expense. At CES, T-Mobile CEO John Legere said ”78% of customers said they would switch if someone paid their early termination fees.”

The total credit T-Mobile is offering can reach $650. Starting Thursday, customers from the three other national carriers who trade in their eligible device to T-Mobile and switch to a “Simple Choice Plan” receive credit based on the value of their phone, up to $300. Then, customers send a copy of their final bill from their old carrier showing early termination fees to T-Moible, and the company will credit them an additional amount, up to $350 per lines.

Meanwhile, T-Mobile announced preliminary fourth quarter results with a total net customer additions of 1.645 million, up from a loss of 32,000 a year ago. That included postpaid net customer additions of 869,000, compared to a loss of 515,000 a year ago. Postpaid churn declined to 1.7% from 2.5 in 2012.

As part of his speech, CEO Legere also had this to say about the wireless industry:

“This industry blows” – @JohnLegere

— T-Mobile (@TMobile) January 8, 2014

T-Mobile stock is up 101.6% since last May. Verizon and AT&T stock are both down over that same time span.

Follow Brian on Facebook and Twitter.

Source: Forbes

This story may contain affiliate links.

Comments

The Author


Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Advertisement

comments powered by Disqus