T-Mobile Slams AT&T Verizon Sprint With Up to $650 in Credits to Switch

 technology, john legere, t-mobile, AT&T, verizon, sprint, legere, no contract, uncarrier, $650, credit, buy out, contract

In a move that left slacked jaws on the CES 2014 Vegas floor, John Legere, CEO of T-Mobile made a stunning announcement. Customers can cancel their contracts and stroll to T-Mobile with up to $650 in credits as a thank you for switching services. The offer is extended beyond their fierce adversary, AT&T – it is also extended to Verizon and Sprint customers as well. What does the offer mean?

Onto the nitty, gritty of the deal. For customers to receive the max credit, they would have to trade in their old phone, purchase a new one and transfer their current number to T-Mobile. While this seems to be in response to AT&T’s $450 credit deal, T-Mobile’s final phase has been rumored for sometime.  Legere took the stage at the 2014 CES in Las Vegas and told journalists that “we will become famous for this in 2014.” He may be right.

Beyond the extension to AT&T, consider Verizon and Sprint customers who may not be happy with their services – they now have a choice. They can consider T-Mobile’s special or even AT&T’s for maximum competition. One has to wonder if it will be a matter of weeks before Sprint and Verizon step on the credit trade-in game. In a boost or perhaps a break-up smack to their current companies, Legere is suggesting customers visit the T-Mobile site to switch. While completing the switch, a consumer can choose to leave a “break-up” letter. The letter is sent to their current carrier to explain why they are being dumped for T-Mobile. Legere and his marketing team are pretty genius.

The break-up letter. Ouch.
The break-up letter. Ouch.

Mike Sievert, chief marketing officer for T-Mobile waved off the suggestion of a bribe. He called the phase a much needed transformation for the industry. In addition, Sievert states a family of four could experience a savings close to $1,900 over a two year span compared to their current plans. That is about $79 monthly, which is an excellent deal.

Legere knows customers want what his company has to provide. The CEO shared he has come across frustrated customers on a daily basis, who feel “handcuffed” by their providers. Original rumors stated $350 would be offered by T-Mobile, instead Legere’s tweet on Wednesday displayed a provocative hint “this one you aren’t gonna believe,” which spelled trouble. Trouble is seemingly becoming synonymous with Legere.

On Monday, the bad boy CEO showed up to the AT&T CES party, as an uninvited guest. He posted with a CNET reporter, who sent the picture to Twitter-verse. AT&T was alerted of the picture and reportedly, per Legere, “goons” showed up to escort him out.

Legere crashed AT&T party Monday
Legere crashed AT&T party Monday

Legere shrugs at the angst reflecting from his competitors. His concept is to continually make carriers squirm in their seats. His agenda was to unseat the aspect of the common way of cell services and remove the restraints that bound millions of customers. With a bright pink t-shirt, shaggy hair and a devil-may-care attitude, that is exactly what Legere has done.

T-Mobile was the first company to eliminate the contract and implement the installment plans – additional carriers followed. The fourth largest carrier is also promoting their global unlimited expansion for customers traveling overseas to selected countries. With the aspect of change in the air, T-Mobile has just matched and exceeded AT&T on buy out credits.

AT&T launched a special last week to target T-Mobile customers to switch to the largest GSM carrier. Touting up to $450 in credits, AT&T was looking to promote their coverage levels and ever-expanding portfolio of phones. It seems T-Mobile met the match and in addition announced their newest flagship phone, the Sony Xperia Z1s, Android.

T-Mobile continues to slam AT&T, Verizon and  Sprint with up to $650 in credits to switch. The offer is certainly going to stir ire within the three largest carriers. Consumers anxiously await the response to see if their companies will create a reason to stay, or develop a bigger reason to switch.


Angelina Bouc

Venture Beat
Chicago Tribune


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