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Ting again offers to buy postpaid users out of contracts

If we’re to believe the flood of media reports that have surfaced in the last four or five months, consumers are starting to lean heavily towards prepaid services over their previous postpaid contracts. These are basically the same articles media outlets have written for years, only now they have some hard numbers to back these claims. Yes, consumers are opting for prepaid services now more than ever before. The only problem for prepaid carriers: many consumers are still locked in long-term contracts with postpaid carriers. Last May Ting, an MVNO of the Sprint network, tried a gambit: they bought out one postpaid contract every day for a month. Now they’re trying something a bit more dramatic.

Instead of buying out one contract per day, they’re buying out anyone who is willin got make the switch. Yes, if you are currently under contract with a postpaid carrier and want to go prepaid with Ting, you can just sign up and they will reimburse you for your early termination fee. That covers up to $350, which is the full early termination fee for postpaid smartphone contracts on all four major carriers.

How can such a small carrier afford to buy so many customers out of their contracts? It’s not a cash-for-cash transaction. The customer has to pay his or her own early termination fee to cancel with the postpaid service. When they sign up with Ting, they will have a credit on their account equal to the termination fee. So, essentially, customers get Ting credit equal to their termination fee, rather than Ting paying the ETF directly. Still, that reimbursement can go towards a smartphone or pay for quite a few months of service.

The promotion runs from February 1 through February 28, so you still have to wait two weeks before taking advantage. Still, it might be worth your while, depending on your contract situation.

Via Phone Scoop.