T-Mobile ends overage charges, CEO challenges competitors to follow

NEW YORK Mon Apr 14, 2014 11:23am EDT

A T-Mobile store sign is seen in Broomfield, Colorado February 25, 2014. REUTERS/Rick Wilking

A T-Mobile store sign is seen in Broomfield, Colorado February 25, 2014.

Credit: Reuters/Rick Wilking

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NEW YORK (Reuters) - T-Mobile US Inc (TMUS.N) said on Monday it would stop charging penalties for customers who go over their data plan limits and launched an online petition calling for rival carriers to do the same.

The announcement means T-mobile's customers won't have to pay for any data beyond the limit they sign up for. Customers who hit their data limit will have their speed slowed down to 2G until they buy another data bucket.

"Today I'm laying down a challenge to AT&T, Verizon and Sprint to join T-Mobile in ending these outrageous overage penalties for all consumers - because it's the right thing to do," T-Mobile Chief Executive John Legere said in a statement.

It was the latest in a series of marketing salvos fired by the No. 4 U.S. telecoms operator across rivals' bows. Legere's prior efforts to redefine the cellular pricing model helped the company turn the corner in 2013 after four years of steadily losing customers, through a combination of marketing savvy and well-publicized wireless plans.

In January, T-Mobile, which is 67 percent owned by Deutsche Telekom (DTEGn.DE), launched a website where rivals' customers can write breakup letters to their carriers and offered to pay up to $350 in termination fees per line for users to switch carriers.

(Reporting By Marina Lopes; Editing by Jonathan Oatis)

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Comments (6)
It’s like, these guys figured out everything that sucks about cell phone plans, and then one by one, got rid of the crap. Good work, dudes — keep going.

Apr 14, 2014 11:58am EDT  --  Report as abuse
Whitecat31 wrote:
AT&T has done something similar. If you have unlimited coverage with them, but go over 3GB in a month, they intentioanlly slow down your service and violate their own contract with you.
Since their service contract has a provision against class action lawsuits with forced arbritation(as does T-Mobile) AT&T does not have to worry about lawsuit damage.
AT&T will pay for your arbitration hearing though. Its a good way to get an easy 600 to 1000 dollars, before you dump them.

Apr 14, 2014 12:20pm EDT  --  Report as abuse
MoonWaning wrote:
Now, if they only would address the OUTRAGEOUS international fees for the occasional caller ($2.00 per minute to U.K.) AND the 35 cents per minute charge for exceeding your regular 1000 minute calling plan (especially when all previous plan periods NEVER exceeded plan usage)….THEN I’ll love ‘em even more!!!!

Apr 14, 2014 12:20pm EDT  --  Report as abuse
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