Another reason to not sign a mobile phone contract

Good pickup by Consumerist here, using one of their inside sources. Word is that T-Mobile is now charging a fee of $18 to upgrade your phone. Yes, when your contract is up and you can gleefully walk to any provider you wish, T-Mobile is going to charge you an additional $18 to get a new phone. This is, in essence, $18 off the subsidy of a new phone. Subsidies are provided for customers who sign contacts.

The reason, as given in the insider e-mail, is that “the new fee will help underwrite the cost of selling subsidized phones to new customers.” This is fundamentally backwards. Yes, T-Mobile should want to sign up new customers. But to alienate their existing ones in favor of the new ones is in poor form.

We’ve always known T-Mobile to be good to their subscribers. We have a buddy who has been with them for four years, and he now gets 400 minutes for like $25 per month. But now they want to charge you more when you sign a new contract? If we were T-Mobile subscribers, we’d walk away immediately.

Remember, the consumer, after being under tight restrictions during the contract period, actually holds the upper hand for once. Customer acquisition costs are high in the wireless industry — some customers can cost up to $800 to replace — so the carrier really doesn’t want to lose you. So why, then, would they charge you $18 more than they’re charging a new customer?

Sorry, T-Mobile, but we’d recommend that anyone looking to sign a new contract and get a new phone should simply go elsewhere. If the company is going to treat their loyal customers this way, they don’t deserve to have them.

[Consumerist]

Related Posts

2 Responses

1. Derek Says
   

   For one it would cost 17 less.
   If you start a new account it cost 35 dollars if you renew you pay 18 and get free phone again
   also with tmobile you can upgrade every 11 months where every other company waits 22 months before they get a full upgrade. (free phone). And just to let you know every phone gets a 50 rebate with upgrade regardless of price so u get $50 rebate on a free phone and u spend 18 to renew on ur bill thats profit of 32 dollars

   
   Posted on November 13th, 2007 at 1:29 pm
2. Robert Nicklaus Says
   

   “And just to let you know every phone gets a 50 rebate with upgrade regardless of price so u get $50 rebate on a free phone and u spend 18 to renew on ur bill thats profit of 32 dollars”

   Completely false……..

   
   Posted on June 8th, 2008 at 6:49 pm

Leave a Reply