T-Mobile Doubles-Down with Aggressive Assault on Competition: Eliminates Overage Fees

Discussion in 'Android News' started by dgstorm, Apr 14, 2014.

  1. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    If you thought T-Mobile's CEO, John Legere was done shaking up the U.S. mobile carrier industry with earth-shattering, ground-breaking and paradigm-shifting announcements, then you would be mistaken. He just announced on his blog that T-Mobile will be eliminating overage fees. Specifically, beginning in May for your bills in June, there will be no overage fees for any T-Mobile subscribers. Here's a quote from the official press release, but be sure to hit up the source link below for Legere's personal announcement on his blog,

    Here's a link to his blog-post in which he details several of the other moves T-Mobile has made over the past few days on top of this bold initiative: BLOG_day-3-of-3*-*T-Mobile US, Inc.
     
  2. kodiak799
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    kodiak799 Silver Member

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    So when people use up their plan allowance, TMo is just going to cut them off for the remainder of the month? Or automatically upgrade you to a more expensive plan (which you can do with VZW, but you have to do it manually)?

    He's making a big stink about this, like others I've seen on various forums and around the web....Thing is, the "massive gouging" amounts to about half a month's service charge for @ 6-7% of subscribers (assuming that data is accurate, seems high to me).

    $1B is still a fraction of a single percent of revenues. It's not a cash-cow, and it's not driving profitability - they don't want to collect overages, they want people to pay for the plans they use.
     
  3. nickb34
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    nickb34 Member

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    I'd rather see "rollover data" as opposed to getting rid of the overages. I pay for 6GB's of data, I should get to use all of that data no matter what month it is in.
     
  4. johnomaz
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    johnomaz Silver Member

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    What overage fees exist at TMobile anyways? We have unlimited voice and text and when we run out of the data we pay for, we drop to 2G speeds until the next billing cycle.

    I see that he mentions older TMobile plans. I'm guessing those don't have the same failsafes for overages. But why not just upgrade them to the new plans? If they are actually having their service cut off, thats kind of annoying. Probably more annoying for some than getting charged for additional usage.
     
  5. Caesars
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    Caesars Senior Member

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    Some people are holding out to older plans, eventually they'll get forced onto something newer anyway.


    Note3/iPhone5s
     
  6. kodiak799
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    kodiak799 Silver Member

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    But then you'd have to pay more, because plans are sold based on average expected usage...If everyone would eventually use an average of 6GB because of roll-over (as opposed to, say, 3GB without), then they'd have to increase the price significantly.
     
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