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.
"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.