Print 11 comment(s) - last by Samus.. on Jan 8 at 6:03 PM

Sources tip T-mobile will pay up to $350 for a family

We have been hearing for a while that T-Mobile would be launching a new program that would pay the early termination fees for people to leave their current provider and come to T-Mobile. The official details of that plan haven't been announced just yet. However, an ad has turned up online that confirms T-Mobile plans.

According to the ad, which was discovered by Droid-Life, T-Mobile will pay termination fees for families when they trade in their devices. Sources report that T-Mobile will pay up to $350 for a family allowing the transfer of up to five lines.

The sources noted that to get the $350 in coverage for termination fees, the users will have to bring over at least three lines. The payout is good for people that transfer in from AT&T, Sprint, or Verizon.

To get the deal from T-Mobile, the users will have to sign a new contract and buy new smartphones. The official announcement of this deal is expected to come today during the T-Mobile conference kicking off today at 12:30 PST.

AT&T is offering $450 for customers to transfer lines over from T-Mobile. Interestingly, T-Mobile's CEO bashed AT&T for making such a "desperate" move

Source: Droid-Life

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for how long...
By sorry dog on 1/8/2014 11:13:29 AM , Rating: 3
we used to do this in the cable biz to steal dish and direct customers. However, it seemed like we kept these kinds of promotions long-term. I was never shown the numbers on one of these, but I suspect that break even would be one of the better outcomes.

On average you can pretty much assign a dollar value to a customer. If you have to spend or give away too much for that customer, then what's the point.

Yet most customers that switch are already dissatisfied and could be had later for much less or coupon clipping penny puckering cheapskates that are hard to make money on anyway.

It will be interesting to see if Tmob comes to the same conclusion.

RE: for how long...
By sorry dog on 1/8/2014 11:16:22 AM , Rating: 2
Ggrrr... maybe we'll get an edit button for next year's Xmas.

Anyway....correction... we (cableco) never kept the buyout promotions long-term.

RE: for how long...
By lagomorpha on 1/8/2014 12:26:21 PM , Rating: 2
T-Mobile's contracts are set up a little differently from Verizon's which might explain how they could make this profitable.

For example, with T-Mobile if you want a Galaxy S4 you pay an additional $26/month for 24 months which ends up being $624. If you terminate service you owe the remainder of the cost on the phone so all they are giving you is 0% financing on the phone. With Verizon if you want the same phone you pay $199 but sign a 2 year contract where breaking the contract starts at $350 and is reduced $10 each month.

So for anyone keeping service with a company for 2 years, Verizon is paying new customers $424 worth of phone up front. So if T-Mobile did pay out $350 for one line (which they aren't, that requires 3 lines) they still aren't out as much money for new customers as Verizon is.

The other factor is that T-Mobile tends to be around $20 less per month for a line than Verizon which ends up making the payment on the phone a wash but that's just part of their business - smaller coverage map, lower monthly payment.

RE: for how long...
By Flunk on 1/8/2014 12:39:35 PM , Rating: 1
I think the real intent is to totally bankrupt the competition, not make money.

RE: for how long...
By Samus on 1/8/2014 6:03:54 PM , Rating: 2
I think they are just desperate.

RE: for how long...
By danjw1 on 1/8/2014 12:40:30 PM , Rating: 3
That only works when you are on contract. T-Mobile isn't doing contracts. They do allow you to pay your phone off over a year, with half upfront, I think. But they don't really lock you in. If you want out just finish paying off your phone. Or just buy it upfront. It is their "Un-carrier" campaign.

RE: for how long...
By gookpwr on 1/8/2014 1:43:46 PM , Rating: 2
Yeah plus if people factor in the Jump program from T-Mobile you're really just leasing the phone. I got a Note 3 for $0 down. I pay $24 a month for the monthly fee for the phone, I pay $11 a month for the Jump program and in a few months when the Galaxy S5 comes out I'll trade in my Note 3 and T-Mobile wipes the slate clean and starts you over with payments on the new phone. Great for me so say it takes 7 months for The Galaxy S5 to come out I only paid $245 to use the Note 3 for that time. Which is by far cheaper and a quicker change over than any other carrier is offering. I root it,Overclock, and put custom ROM's on the Note 3. T-Mobile still has to take it because even if the phone is smashed as long as you give them a physical device back your free of the obligations to finish paying for the previous phone under the Jump program. No carrier beats that.

RE: for how long...
By retrospooty on 1/8/2014 5:00:55 PM , Rating: 2
Absolutely... I would switch in a second if I weren't on a company paid plan. Free is still better, and no ridiculous Verizon bootloader lock issues.

RE: for how long...
By ven1ger on 1/8/2014 1:38:41 PM , Rating: 2
Wish T-M had this last year. I used to be a Sprint subscriber for about 15 years, and 4 lines. I gave up with Sprint as a long time customer they were very inflexible with their plans, I was satisfied with their services and phones but lousy on their plan options.

T-M I've had serious issues about their billing, I had my daughter's smartphone on T-mobile on a monthly payment plan, twice they charged my CC and then promptly cut off her service for non-payment. But, their plans were a lot cheaper than Sprint, AT&T and Verizon so had to deal with it and eventually moved over the rest of the lines and its been okay not as good as Sprint, but pricing was a big deal for me.

By Gunbuster on 1/8/2014 3:11:23 PM , Rating: 2
Will they buy out Verizon business customers? I would love to get my people on a plan with free international roaming unlike the $25 per 100 meg I'm stuck with now.

By retrospooty on 1/8/2014 4:54:14 PM , Rating: 2
$300 credit for your old phone and $350 to pay your early term fees...

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