T-Mobile Ending All Overage Charges, Challenging Rivals to Follow

Discussion in 'iOS Blog Discussion' started by MacRumors, Apr 14, 2014.

  1. macrumors bot


    Apr 12, 2001

    T-Mobile is kicking off a new campaign targeting overage fees as part of its ongoing Uncarrier initiative that aims to disrupt the wireless industry in the U.S. Starting in May, the U.S. carrier is eliminating overage charges for all its customers regardless of their cellular plan. The wireless carrier also challenges its competitors to do the same.

    With this move, T-Mobile is abolishing those additional charges that are levied when a customer exceeds their available minutes or allotted data for their cellular plan. These extra calling minutes or gigabytes of data are charged at a much higher rate and can easily add hundreds of dollars on to a customer's base monthly bill. Estimates cited by T-Mobile suggest consumers paid up to $1 billion in penalties last year for these punitive charges.
    Besides removing overage fees, T-Mobile's Legere also started an online petition that asks AT&T, Verizon and Sprint to end overage fees, saying they are "no longer welcomed in this industry."

    This petition is part of a larger initiative by T-Mobile to shake up the cellular industry in the United States with a series of promotions and policy changes, including ETF buyouts for customers who switch from a rival carrier, early upgrades and no-contract cellular plans.

    Article Link: T-Mobile Ending All Overage Charges, Challenging Rivals to Follow
  2. macrumors 6502a


    Sep 8, 2011
    Go T-Mobile! You guys are shaking it up. Other carriers should be worried.
  3. Moderator


    Staff Member

    Sep 8, 2010
    Detroit, Michigan
    I'm liking these new business initiatives by T-Mobile. I just wish they had better coverage in my area.
  4. macrumors 604


    Nov 26, 2007
  5. macrumors 6502a

    Nov 18, 2008
    The link to the press release about this isn't working......I would love to confirm this on T-Mobile's site directly.
  6. macrumors 604


    Mar 26, 2008
    over here they throttle you to 64kbs after u reached your data limit instead of charging you redic amounts for an 1mb
  7. macrumors 603

    Aug 15, 2001
    The Cool Part of CA, USA
    You really gotta like T-Mobile. They're running a carrier the way carriers should have been run from the start, if the industry hadn't been mired in a consumer-hostile mess enabled by rampant collusion for so long.

    Their coverage isn't very good, but it's good enough where I live to make me glad I'm a customer, and their international roaming is so far beyond what anyone else offers that there isn't even any competition for those of us who travel.
  8. macrumors 68000


    May 28, 2008
    Just expand your network and make it stronger....
  9. macrumors 6502a

    May 27, 2009
    All I see is this is going to push low priced plans up. So t-mobiles $40 simple start plan will soon be $65+? Stoping overage charges wouldn't everyone flock to the cheapest plan? I can't see ATT and Verizon doing something like this.
  10. macrumors 603

    Jun 19, 2009
    with this new plan isn't t-mo simply cutting off your data and letting you buy some more instead of throttling you or charging you an overage fee?
  11. macrumors 68030


    Oct 6, 2008
    So how does this work then? I assume you are still going to pay for the extra data when you go over...but is it just at the same rate as your initial package?
  12. macrumors 601


    Feb 22, 2003
    New Hampshire
    I'm confused. Without overage charges, what's to prevent me from getting the cheapest data plan and using all the data I want ?
  13. macrumors 6502

    Mar 9, 2007
    The cable industry has deals with cities to prevent competition.
  14. macrumors member

    Jul 29, 2009
    The deal is that they throttle you to EDGE speeds when you reach your allocation, and then they call their plans "unlimited data."
  15. macrumors regular

    Sep 20, 2013
    Irvine, CA
    I thought the same thing. It doesn't make sense otherwise.
  16. macrumors regular

    Jun 4, 2011
    2G speed or data cut offs? The $40 Simple Starter w/ 500 meg probably just caps out and cuts off data at 500 meg. If not, then you're throttled to 2G speed (64-128kb/s).

    The rest of the post-paid contracts it's already known, they throttle you. My iPad which is only on the $0/mo free 200 meg pre-paid plan, the data is just straight out cut off.
  17. macrumors regular

    Mar 8, 2006
    They may stop you and make you pay for more data. That would end overages and give you control of your bill. There would be no more $200 surprises because you streamed a movie. You could get a smaller plan that covers most of your usage and for that month you ned more just buy more. Or if you ran out of your data a couple days before your bill cycle, instead of paying ridiculous overages just wait it out.

    It's a good idea. Hardly revolutionary but a good idea.

    Now they just need to keep plugging away on coverage!
  18. macrumors member

    Jul 18, 2013
    So tmobile were greedy and predatory until they just changed this?
  19. macrumors regular

    Mar 8, 2006
    You can get truly unlimited with no throttling.

    And I'm on prepaid and was throttled for 1 day. It was not that bad. You wouldn't be streaming anything but for basic app usage, navigation, and limited web searching/browsing it was fine. 128k is not speedy but usable. Better than racking up hundreds with, say Verizon.
  20. macrumors 68000


    May 28, 2008
    Always being throttles to nearly unusable speeds...
  21. macrumors newbie

    Oct 14, 2013
  22. macrumors 6502


    Jan 9, 2008
    Boston, MA
    No, they just throttle your connection. Not sure how it would work with voice or text overages, though.
  23. macrumors G5


    Aug 1, 2004
    St. Louis, MO
    It's funny, when AT&T does it with their grandfathered unlimited data plan, it's false advertising and misleading. When T-Mobile does it, it's revolutionary and shaking up the wireless industry.
  24. macrumors member

    Aug 8, 2007
    So how does this work? Do they cut off your data when you hit the limit, throttle you when you hit the limit or throttle you for a bit after you hit the limit then cut you off? I'd be all for it as long as I had the option to buy additional data if I wanted it.

    You've got to applaud T-Mobile for shaking things up. Everybody benefits because the other companies are going to have to respond in some way. I've already seen my AT&T bill drop from by nearly $40 bucks in the last several months due to their new mobile share value plans. It's getting closer and closer to a level I think is acceptable.

    I'm in an area where 2G is the best T-Mobile has but I'm located right between two metropolitan areas that both have LTE coverage. If you drive a few miles north or south T-Mobile has LTE coverage so it's only a matter of time before they provide it where I live. First Verizon then AT&T rolled theirs out the same way.

    When that happens I'll have to give T-Mobile a good long look. The only downside would be traveling. It's so nice to have AT&T's slower 4G coverage to fall back on when LTE isn't available in an area. Having to go back to 2G in those instances won't be fun.
  25. macrumors 68000

    Cuban Missles

    Dec 6, 2012
    My heart is in Camagüey, the rest in the USA
    I bought my 5s on a AT&T 2-year contract. Depending on what Apple does, I may bail when the 6 comes out. It will be interesting to see what each of the carriers offer in October. Right now I see me either jumpin to Tmob or staying with AT&T. Sprint and Verizon still do not allow surfing and talking at the same time (they really need to get off of CDMA and fix this).

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