For its latest trick, T-Mobile says it will abolish domestic data, text, and voice overage charges for all its customers on any plan, and it's calling on its competitors to do the same.
T-Mobile US Inc. announced the move on Monday, the third of its latest round of "uncarrier" moves. Last week, the carrier also introduced a $40 500MB data plan and reduced the price of the LTE iPad to WiFi levels. Killing overage charges is its final act for what could be seen as version 5.0 in its sequence of uncarrier shake-ups. (See T-Mobile Drops LTE iPad Prices to WiFi Levels and Look Inside T-Mobile's 'Uncarrier' Transformation.)
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.
— Sarah Reedy, Senior Editor, Light Reading