Imagine a world with no overage fees. Could it be possible to go over your data limit without being hit with massive charges? T-Mobile believes in this near smartphone usage utopia and is trying to force other carriers to follow suite. For a company that seemed to be fading away only a few years ago, they’ve turned the mobile world upside down with practices that actually benefit the consumer and not just CEO wallets.
Unheard Of Campaign
Usually when mobile carriers make announcements, it’s about new devices, extra fees or the end of features consumers love. Everyone remember Verizon stripping away unlimited data plans? T-Mobile did something unheard of in today’s high price for fewer features mobile world – they announced the end of overage charges starting in April 2014.
Before you get excited, they’re not offering unlimited data usage. Hopefully, that will come soon. After all, what’s the point of a mobile device if you have to be tied to a Wi-Fi hotspot all the time just to use it? They’ll still enforce a limit of 2GB per month, but depending on your plan, you can either buy more data or speed will be throttled.
The Challenge To Rivals
T-Mobile challenged rivals to put an end to overage charges across the board. John Legere, CEO of T-Mobile, created a Change.org petition to back the big three mobile providers to end the horrendous overage fee practice. According to the petition, over 20 million Americans had to shell out for overages in 2013 alone.
Last year, AT&T, Sprint and Verizon charged consumers approximately $1 billion in penalties. With that much extra revenue, no one should ever face a dead zone again. While the petition is only 98 signatures short of its 10,000 goal as of April 14, it’s only been up for one day. Mobile carriers may very well see just how customers feel about being nickeled and dimed for every byte of data.
Boost Their Position
The move is a smart one on T-Mobile’s part. They’re currently fourth among mobile carriers. With their current campaign of paying off users’ early termination fees if they switch and an end to overage fees, the company could see a major increase in customers. If the other carriers choose not to respond to the challenge, T-Mobile could become consumers’ new favorite carrier.
The only real problem T-Mobile faces is lack of coverage. Whether users like it or not, Verizon dominates the market when it comes to nationwide coverage. If T-Mobile can overcome that obstacle, we may just see a new mobile king.
Do you think the other carriers will stop overage fees or at least offer an alternative?