UPDATED 09:15 EST / JANUARY 09 2014

NEWS

T-Mobile offers up to $650 credits for rivals’ customers

In 2011, AT&T was almost set to acquire T-Mobile, but because of various reasons and regulations the deal did not push forward. But even though the acquisition failed to happen, many believed that the two carriers would instead become partners. They couldn’t have been more wrong, as the two companies have since become arch-enemies.

The two are at each others throats, desperately trying to poach customers from one another.

Before CES 2014, it was rumored that T-Mobile would be announcing a new promotion to entice the customers of its rivals to jump ship. The rumor was that T-Mobile would effectively ‘bribe’ people by offering to pay for the termination fee of existing carrier contracts.

AT&T decided it’s not going to lose customers to T-Mobile, so it offered a deal much like the rumored deal for subscribers of other networks.  For T-Mobile subscribers, AT&T is offering as much as $250 on a promotion card for every smartphone trade-in, which can be used “toward purchases of eligible AT&T products & services or to pay your wireless bill.”

The promotion card’s value depends on what phone will be traded in, its age, and its quality. But aside from the $250 promotion card, AT&T will give $200 credit for every line they transfer from T-Mobile.  So that’s a $450 value if T-Mobile subscribers jump ship.

Though this scheme looks like being a direct hit to T-Mobile, AT&T claims that “Wireless has always been a very competitive industry and a move like this should not be unexpected.”

Sprint and Verizon customers were not forgotten, as they can get “a minimum $100 trade-in when they choose Next, plus pay only $25 per smartphone on Mobile Share Value plans.”

AT&T’s offer is already too good to pass up, but what T-Mobile unveiled at CES 2014 would make AT&T subscribers run for the doors.

T-Mobile is offering to pay the whole termination fee for customers that wish to leave their current providers.  Aside from that, T-Mobile will cover up to five lines per family for those who want to jump ship.  Customers can get up to $650 in credits by trading in.

T-Mobile CEO John Legere describes the industry as being broken, and he is banking on forcing it to become healthier with this new effort.

T-Mobile saw its highest customer growth back in August, months after it launched its UnCarrier plan.  Instead of forcing two-year contracts down customers throats, the UnCarrier plan lightens the burden of owning smartphones by subsidizing the cost of the device itself.

T-Mobile has shaken the mobile industry, and consumers are now taking notice.  If AT&T and others fail to catch up with T-Mobile’s unorthodox strategy, they may soon find themselves kissing its ass.


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