12:10 PM – We all hate those early termination fees that carriers have put in place. If you want to leave your contract early, depending on how far you are in your contract, be ready to pay at least $200 to cancel. Early Termination Fees (ETFs) are the reasons customers are bound to stay with the carrier. We recently told you about T-Mobile’s CEO John Legere teasing us on Twitter about “Uncarrier 4,” the company’s next phase in eliminating something that eases customer’s pain. We may get insight about what this plan codenamed “Houdini” is all about, from a recent report published by TmoNews.
A source close to TmoNews has told them that the carrier’s next phase may be related to early termination fees. This will be especially appealing to family as T-Mobile will offer $350 credit for those switching from another carrier. This deal would be aimed for families with up to five lines. Customers would receive instant credits for trading in their current smartphone, and once you turn in the total bill, the wireless carrier would credit you $350.
Here is the information TmoNews was given:
New customers will receive instant credit when they trade in a smartphone, then get a credit for the ETF charged by their old carrier when they submit the final bill to TMO.
Essentially, you may spend up to $350 per line to leave AT&T, Verizon or Sprint, but that money is reimbursed to you by T-Mobile in credit towards a new plan. You aren’t spending any extra money in terms of the $350. This is a great way for T-Mobile to attract customers away from other carriers like AT&T and Verizon, who are currently charging customers a lot of money for their plans. Other carrier’s are trying to compete with T-Mobile, but are still failing.
This is quite a bold move on T-Mobile’s part. Don’t you think?