T-Mobile revealed their latest attempt at mobile supremacy on Wednesday when it announced it would pay early termination fees for whoever made the switch from Sprint, AT&T, or Verizon.
The company announced it would pay fees up to $650, including a maximum of $350 per line and $300 per phone. This comes a week after AT&T announced it would offer T-Mobile customers $450 in credit if they made the switch to them.
But it seems T-Mobile has the upper hand after delivering big numbers in 2013. The company added 4.4 million customers last year, its biggest growth in eight years.
T-Mobile added 1.6 million new subscribers in its fourth quarter alone, bringing its total customer number to almost 47 million people.
Popular VideoThis young teenage singer was shocked when Keith Urban invited her on stage at his concert. A few moments later, he made her wildest dreams come true.
The company says this is proof its “uncarrier” strategy and “Simple Choice Plan” with no annual contract is working after only eight months.
Subscribers making the switch to T-Mobile from one of the three other nationwide mobile providers will have to trade their old phone, buy a new one from the company and give up their current phone number.
Offering to pay for termination fees might be what gets even more people flock to T-Mobile, according to CEO John Legere, who says “78% of customers said they would switch if someone paid their early termination fees.”
“We will become famous for this in 2014,” Legere told reporters at this year’s Consumer Electronics Show in Las Vegas. “We’re going to force the industry to change. I want every customer to have a complete choice. It’s going to be a healthier industry.”
Popular VideoThis young teenage singer was shocked when Keith Urban invited her on stage at his concert. A few moments later, he made her wildest dreams come true:
Perhaps adding insult to injury, T-Mobile is even urging customers to visit T-Mobile.com/break-up and write their mobile carrier a break-up letter.
“It’s not a bribe. It’s transformational for our industry,” T-Mobile’s chief marketing officer, Mike Sievert said at CES.
The company said competitors’ customers can make the switch starting Thursday.
T-Mobile stock is up to 101.6% since last May, according to Forbes, while both Verizon and AT&T stock are down over the same time span.
Sources: Forbes, CNN Money