Overage charges -- fees incurred when subscribers go over their allotment of monthly data -- can add up quickly. T-Mobile CEO John Legere said Monday that more than 20 million Americans were hit with overage charges in 2013, making $1 billion for AT&T Inc. (NYSE: T), Verizon Wireless , and Sprint Corp. (NYSE: S) combined.
He's doing away with the charges for all of T-Mobile's customers on domestic voice, text, and data plans. T-Mobile already started down this road with its Simple Choice plans that include unlimited voice and text and throttle speeds rather than charge when the data cap is reached. (See T-Mobile Shuns Overage Charges.)
The T-Mobile chief has also started a petition imploring its three competitors to do join him in killing overages. Nearly 400 people had signed the petition at our latest check.
KBode, User Rank: Light Sabre 4/18/2014 | 12:57:12 PM
Re: Overage petition I imagine that this is one thing AT&T and Verizon won't budge on. Their entire future is predicated on people using more data and hitting these overage walls.
I also don't see a tremendously huge difference between automatically being billed overages, and just buying another chunk of data. It still comes down to lower price versus higher price. I'd go with the lower price (T-Mobile) if the company had a better nationwide wireless broadband footprint for when I travel.
Driving across the country from NYC to Seattle this summer, for example, and I simply don't trust T-Mobile to be there in the middle of Nebraska.
SarahReedy, User Rank: Blogger 4/15/2014 | 12:56:47 PM
Re: over overages Agreed. They conveniently left themselves out of that stat, which comes from "third party bill screening report surveying over 20,000 wireless customers multiplied by major U.S. carriers' reported postpaid subscribers." The third party is unidentified, but I'll do some digging to see if we can unearth T-Mo's numbers as well.
DOShea, User Rank: Blogger 4/15/2014 | 10:47:47 AM
Re: over overages I would still be interested to know how much T-Mobile was reaping on overage charges, since it's happy to point out what the other three biggest carriers were pulling in collectively. I'm betting the timing of this move was calculated--maybe T-Mobile felt its uncarrier buzz was fading and had this plan ready to go to revive it.
kq4ym, User Rank: Light Sabre 4/14/2014 | 7:01:43 PM
Re: over overages Given the choice consumers will probably pick throttling vs. overages. And depending on what's being downloaded there may not be much difference seen by most in the throttling scenario. It's probably and win win for T-Mobile and customers and maybe others will follow.
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