T-Mobile Announces “Contract Freedom,” Will Pay Early Termination Fees On Up To 5 Lines

switchT-Mobile’s campaign to brand themselves as America’s “un-carrier” started last year at CES in Las Vegas, so it makes sense that the company introduced “Uncarrier 4.0″ this afternoon at the same event.

“One of the biggest evils in this industry is the family plan…a family plan is nothing more than a contract on super-steroids,” explained T-Mobile’s magenta-clad, party-crashing CEO John Legere. Instead of one line, a family plan is really multiple lines with different contract end dates, “a contract into perpetuity.”

What the company wants to do is “eliminate pain points.” Like what? The biggest pain point for most post-paid customers is Early Termination Fees. ETFs are really part of what Legere calls the “industry scam” of keeping customers locked in to their plans. “Customers should be able to pick up and leave,” he told the crowd.

That’s why, as we heard earlier today, T-Mobile is paying the ETF for postpaid customers of other carriers who port their numbers. They’ll pay out for five lines on the same account, then offer up to $300 for your phone according to the trade-in value.

Oh, and what are the other pain points in the mobile phone industry? It’s not as painful as being smacked with a high ETF, but many people want to escape their current carriers in order to avoid slow data or bad networks in their region. T-Mobile showed off real data from Speedtest.net tests performed yesterday by their customers that indicates that T-Mobile’s LTE speeds are the fastest and most consistent compared to other carriers, which will probably improve once Big Magenta starts using that new spectrum that it recently purchased from Verizon.

Break Up With Your Carrier [T-Mobile]

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  1. FusioptimaSX says:

    Is this a promotion or is this something more permanent? I was waiting for someone beside Credo to offer buyouts when I was on Sprint. I would have gladly switched but Credo runs on Sprint’s network. The Unlimited Data Sprint offers is a joke and they are so focused on 4G LTE when their 3G is an absolute joke. I’m with Verizon and I couldn’t be happier. I didn’t realize how fast wireless internet was supposed to be until I switched! Sure, I had 4G once…..away from home, and it zapped my battery right along with it.