T-Mobile Ending All Overage Charges, Challenging Rivals to Follow
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.
"Charging overage fees is a greedy, predatory practice that needs to go," continued T-Mobile CEO John Legere. "Starting in May for bills arriving in June - regardless of whether you're on Simple Choice, Simple Starter or an older plan, we're abolishing overages for good. Period."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.