Report: T-Mobile Set to End Phone Contracts

By Zak Islam
published

Two-year contracts and early termination fees to be discontinued.

Wireless carrier T-Mobile is purportedly preparing to end phone contracts in an effort to better compete with its competitors.

According to an internal memo obtained by TmoNews, T-Mobile could announce its "uncarrier" plans during March. The decision would remove two-year contracts, early termination fees and traditional phone subsidies, consequently allowing customers to purchase new devices via a monthly installment plan.

The memo in question also apparently reveals that T-Mobile intends to market its HSPA+ and forthcoming LTE network as "dual 4G" technology amid its merger with MetroPCS. The re-branding initiative is due to commence on March 24.

Back in December, T-Mobile CEO John Legere discussed alternative options to compete with Verizon and AT&T. He said during Deutsche Telekom’s annual investor conference that "we think there is a huge room for a carrier to change in a way that the larger players will choose to or will not be able to respond to."

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Zak Islam
14 Comments Comment from the forums
  • goodguy713
    sounds like t-mobile is planning on a buisness model like vergin mobile .. sounds like a good deal especially if they offer phone purchase plans verses lump sum purchases .. and month to month has always been a better deal because your not locked into a contract with fixed minutes and data rates
    Reply
  • silvianoshei
    Sounds great. Considering switching if true. They are carrying the HTC One, which I do like.
    Reply
  • slomo4sho
    Oh look one of the big 4 are actually adapting and changing their business model to mimic cell phone service everywhere else in the world besides the USA. Definitely a step in the right direction. Now only if we could get data service comparable to South Korea :)
    Reply
  • TunaSoda
    Now all they need is good service...
    Reply
  • DookieDraws
    Anyone familiar with Page Plus Cellular? Been looking at some of their yearly plans for my father. He wouldn't be a heavy user, just wants one for emergency situations. They have an $80 2,000 minute plan that lasts a year. I doubt he'd use anywhere near that, but if he is about to run out, he can add more minutes. He damn sure won't be texting or sending pictures of his old sack to friends. Don't think so, anyway.

    Anyway, just wanted to ask. Heck, most of their other plans look decent, too.

    Thanks in advance.
    Reply
  • shikamaru31789
    T-mobile has some excellent deals, such as there $30, 100 minute, unlimited text, 5gb 4G data and unlimited 3G data plan. Unfortunately, T-Mobile still has 2G in my area, while Sprint and Verizon already have 4G here. If T-Mobile could bring at least 3G here in the near future, it would mean a definite switch for me.
    Reply
  • g00fysmiley
    tempting.. t-mobile and verizon both have 4g in my area and some april if sprint doesn't have 4g in my area it is time to switch carriers, i was promised by a rep my area would have 4g in a few months over a year ago, this move might get t-mobile a customer
    Reply
  • Tal Greywolf
    I've been with T-Mobile for over 9 years now. Never had a problem, never had an issue with calls or connectivity, don't use texting, email or web browsing so I can't speak to their reliability. But for what I use it for, it's fine. $39/mo for 1000 anytime minutes, plus the usual weekends free... no other carrier could touch that level of usage for that low a price.

    Personally, I'd rather stay with T-Mobile than anyone else. They've always been rock steady no matter where I've traveled to.
    Reply
  • rickarino
    @DookieDraws I've been with PagePlus for 3 years now. Great prepaid on Verizon network. It's a win-win and I highly recommend it.
    Reply
  • DookieDraws
    rickarino@DookieDraws I've been with PagePlus for 3 years now. Great prepaid on Verizon network. It's a win-win and I highly recommend it.
    Certainly considering it. Seems they have very little phones to choose from, though. There site has only 4 phones!

    Thanks for your info, bro.
    Reply