T-Mobile Ending All Overage Charges, Challenging Rivals to Follow

by

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.

t-mobile_usa_logo
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.

Top Rated Comments

ArtOfWarfare Avatar
88 months ago
The cable industry needs a T-Mobile.
Score: 35 Votes (Like | Disagree)
iAppl3Fan Avatar
88 months ago
Go T-Mobile! You guys are shaking it up. Other carriers should be worried.
Score: 13 Votes (Like | Disagree)
extrachrispy Avatar
88 months ago

with this new plan isn't t-mo simply cutting off your data and letting you buy some more instead of throttling you or charging you an overage fee?


So how does this work then? I assume you are still going to pay for the extra data when you go over...but is it just at the same rate as your initial package?


I'm confused. Without overage charges, what's to prevent me from getting the cheapest data plan and using all the data I want ?


The deal is that they throttle you to EDGE speeds when you reach your allocation, and then they call their plans "unlimited data."
Score: 7 Votes (Like | Disagree)
Makosuke Avatar
88 months ago
You really gotta like T-Mobile. They're running a carrier the way carriers should have been run from the start, if the industry hadn't been mired in a consumer-hostile mess enabled by rampant collusion for so long.

Their coverage isn't very good, but it's good enough where I live to make me glad I'm a customer, and their international roaming is so far beyond what anyone else offers that there isn't even any competition for those of us who travel.
Score: 6 Votes (Like | Disagree)
chinesedemo Avatar
88 months ago

Such greedy policies were NEVER "welcome". They were done because they COULD. Just like how my credit union charges me $30 if I don't have enough money in my checking account to make a payment from my savings, or at all, for that matter. Charging people fees for not having money is, and always has been, greedy and illogical. The only place crap like this is ever "welcome" is in corporate board rooms. If not for the successes of these companies, they wouldn't have started all these abusive practices in the first place. But these "service provider" companies are at the top of the list in the corporate brotherhood of "fees and other additional charges". Once one is big enough to do it without losing too many customers, the rest follow suit to make sure they're not missing out on a revenue stream.

There's so much like this going on in capitalism that it's nice to see at least one company trying to do what capitalists claim is at the core of the system: be competitive by being BETTER in some way. They can't be better on a technical level? Well, then be better to customers and appeal to new customers that way. Sad.

But billions have already been extracted from consumers by these companies with these unethical and consumer abusive techniques, and if T-Mobile fails to win people over with this strategy (or even more likely, if they became an industry dominator), I'm sure corporate "governance" would decide to reinstill these abusive fees just to increase profit margins once their profit increases started leveling off year over year. That's WHY these fees and other abuses EXIST in the first place! That's also why they'll eventually return. Never trust capitalism to do the right thing for YOU the consumer, and never trust it to let you pay the same amount every month, regularly, because they'll change the deal on you the moment it stops getting them a lot of new subscribers, and they'll increase prices just to increase profit, NOT because the cost of running the business increases (my DSL and phone combo bill has gone from $50 per month to $72 per month between 2005 and 2014, and the quality of services and data speeds have only degraded, and I've fought various fees for crap I never asked for; yet Verizon has been making greater profits hand over fist year after year; like the lies of the petroleum companies, they're not struggling, it just makes them greater profits to make their customers struggle).

Still... Hooray for T-Mobile... If they weren't a struggling carrier, it might look like something other than an act of desperation to actually treat their customers better than their competitors do. No, I don't take this as proof that capitalism works, and I don't see what this has to do with Apple/Mac news. Maybe if Apple became a cellular carrier...


Much of what you wrote here is nonsense. You are welcome to jump on the defeatism train. But you are the source of your own woes.
Score: 4 Votes (Like | Disagree)
thekev Avatar
88 months ago

I'm confused. Without overage charges, what's to prevent me from getting the cheapest data plan and using all the data I want ?


They throttle you down to edge speeds. If you look at their current plans, the amount of data you pay for is what you'll get at full speed. The reason it is still appealing is that you have a predictable bill. If you go over, service may suck. It just won't end with sticker shock. I don't think that's a bad system.
Score: 4 Votes (Like | Disagree)

Top Stories

iphone 5s black slate

Images of Unreleased iPhone 5s in Black and Slate Shared Online

Sunday January 17, 2021 9:47 am PST by
Twitter user @DongleBookPro has today shared images of a prototype iPhone 5s in an unreleased Black and Slate color. The iPhone 5s was launched in September 2013. The device featured Touch ID, a 64-bit processor, and a True Tone LED flash for the first time. Other new features included a five-element lens with an f/2.2 aperture, a 15 percent larger camera sensor, Burst Mode, and Slo-Mo...
iP12 charge airpods feature 2

Hidden iPhone 12 Hardware Feature Could Still be Unlocked

Thursday January 14, 2021 2:51 am PST by
All iPhone 12 and iPhone 12 Pro models purportedly have a hidden reverse wireless charging feature, according to an FCC filing. The feature has not yet been activated, but could yet be unlocked for an upcoming Apple accessory. The FCC filing suggests that iPhone 12 models contain the hardware for Wireless Power Transfer (WPT) to accessories: In addition to being able to be charged by a...
Top Stories 43 Feature

Top Stories: MacBook Pro, iMac, Mac Pro, and iPhone Rumors, Best of CES 2021

Saturday January 16, 2021 6:00 am PST by
This week was sure a busy one in the Apple world, with a flurry of announcements out of CES early in the week followed by a rash of Mac- and iPhone-related rumors later in the week. The new rumors this week included details on updated MacBook Pro, iMac, and Mac Pro models, as well as a few other tidbits, so make sure to read on below to get caught up! Kuo: New MacBook Pro Models to...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
macbook pro flexgate

Apple Extends 13-Inch MacBook Pro Backlight Repair Program

Sunday January 17, 2021 10:31 am PST by
Apple this week extended its worldwide 13-inch MacBook Pro Display Backlight Service Program, authorizing coverage for eligible notebooks for up to five years after the original purchase date or up to three years after the start date of the program, whichever is longer. The previous cutoff was four years after the original purchase date. Apple launched the program on May 21, 2019 after...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
Apple TV Ray Light 2 Triad

Apple Extends Free Apple TV+ Trials Until July

Friday January 15, 2021 10:50 am PST by
Apple is once again planning to extend its free Apple TV+ trial subscriptions, this time until July. When Apple TV+ launched in November 2019, Apple offered free Apple TV+ subscriptions to those who purchased a new Apple device in or after September 2019. Those free subscriptions were set to expire in November 2020, but in October 2020, Apple announced that it was extending free trials...
mac pro mini feature

Apple Working on Two New Mac Pro Desktops, One of Which Will Be Reminiscent of Power Mac G4 Cube

Friday January 15, 2021 10:23 am PST by
Apple is developing two versions of the Mac Pro to succeed the Mac Pro that was first released in December 2019, according to a new report from Bloomberg. The first updated Mac Pro is a direct successor to the current Mac Pro and it will use the same design. It may also be equipped with Intel processors rather than Apple silicon chips, and it could be one of the sole machines in the Mac...
macbook pro magsafe

MagSafe is Coming Back to the Mac: A Look Back at Apple's Original Magnetic Charging Technology

Friday January 15, 2021 12:16 pm PST by
Surprise late night rumors last night provided us with our first in-depth look at what we can expect from the new MacBook Pro models that are coming in 2021, and there are some significant changes in the works. Along with additional ports, a new flat-edged design, and the removal of the Touch Bar, Apple's updated MacBook Pro machines will readopt MagSafe. MagSafe in the 2021 MacBook Pro...