T-Mobile Tweaks JUMP Phone Upgrade Plan
T-Mobile is kicking off its promised series of updates to its first nine "Uncarrier" moves by tweaking its JUMP subsidy-free smartphone upgrade program, doing away with the $10 monthly fee and letting customers upgrade to a new device at any time rather than just every six months.
Called JUMP On Demand, the new plan lets T-Mobile US Inc. customers upgrade to a new smartphone up to three times a year, with zero out-of-pocket expenses for qualified users and one monthly payment that encompasses the cost of the smartphone. JUMP, or "Just Upgrade My Phone," was Uncarrier 2.0, announced in July 2013, enabling T-Mobile customers to trade in their old, functioning handsets for a new, subsidized device twice a year. (See T-Mobile: Might As Well JUMP and T-Mobile's JUMP is Live.)
Like most of its (and any carriers') programs, however, there's a small catch on this one: While T-Mobile is doing away with the $10 per month fee originally tacked on to JUMP plans, it's also removing insurance from the plans. If a customer wants to add it back on, it'll cost an additional $8 per month.
In a video blog announcing the new program, T-Mobile CEO John Legere said that more than 10 million consumers have signed on to JUMP, upgrading their phones 30% faster than anyone else -- every 14 months compared to the industry average of 20.
T-Mobile's JUMP plan was one Uncarrier move that all of the other big three carriers responded to in some form, ultimately shaking up the industry standard of two-year contracts and decoupling the cost of the smartphone from the cost of the service plan. All have been fairly successful for the carriers and have had the effect of shifting their revenues from services to hardware. (See Verizon Focuses on Cashing In on LTE.)
AT&T Inc. (NYSE: T) immediately responded by introducing its own subsidy-free Next plans that let its customers upgrade devices once per year. Verizon Wireless introduced Edge equipment installment plans, but requires its customers to pay off their original handset before they can upgrade. And Sprint Corp. (NYSE: S) unveiled its own smartphone leasing plans. (See AT&T's Next to Shorten Wait for Device Upgrades, Verizon's 4G Strength Keeps It Above the Fray and Sprint's iPhone-Only Plans Got Apple's Blessing.)
Legere has promised more upgrades in the coming weeks, through announcements he's calling Uncarrier Amped, making its most popular plans and promos "even bigger, even better, even ballsier."
— Sarah Thomas, , Editorial Operations Director, Light Reading