Latest Uncarrier move: diminishing ETFs

[raino]

https://newsroom.t-mobile.com/news-and-blogs/epic-summer-deal.htm

T-Mobile giving away Samsung Galaxy On5 and J7 to customers on select rate plans - TmoNews

if you cancel service or switch to a lower rate plan before your 24 months are up, you’ll owe the remaining balance on the device.

Don't call it a two year contract though. Uncarrier.

 

[theelite1x87]

Well, keep service and plan and device is free. It's a promotion. They have to do something to make sure people don't just grab a free device and run away.

 

[raino]

Well, keep service and plan and device is free.

You've just described a contract! The 'or else' is akin to an ETF.

 

[boogas8]

You've just described a contract! The 'or else' is akin to an ETF.

This is the equivalent of putting any other device on EIP, which the whole contract argument about EIP has been beaten to death. No surprises here.

 

[raino]

This is the equivalent of putting any other device on EIP, which the whole contract argument about EIP has been beaten to death. No surprises here.

This isn't a regular EIP though. You pay for the phone and for two years, they keep giving you monthly credits to offset the payments. If you leave, you owe a balloon payment on the phone for however much you owe. This is exactly like what Verizon, AT&T and Sprint would do, except they'd start the ETF from $325 or 350 and go down by $5-10 per month you stayed.

And what's worse, arguably, is that there's no BYOP discount--you still have to pay $120 for 4 lines. That again is like signing a two year contract.

 

[boogas8]

This isn't a regular EIP though. You pay for the phone and for two years, they keep giving you monthly credits to offset the payments. If you leave, you owe a balloon payment on the phone for however much you owe. This is exactly like what Verizon, AT&T and Sprint would do, except they'd start the ETF from $325 or 350 and go down by $5-10 per month you stayed.

And what's worse, arguably, is that there's no BYOP discount--you still have to pay $120 for 4 lines. That again is like signing a two year contract.

That's why said equivalent, not the same. Simply put there's a device on the account for 24 months ( whether Tmo or the customer pays it doesn't matter), if you leave the remainder of the device balance becomes do.

I do see that the some customers may not see that connection and could try to leave early and forget about those phone credits they have been receiving.

All in all its equivalent to EIP and buying a very expensive phone. The wording might throw people off in the future though.

 

[raino]

Suppose someone signs up for this plan and gets the phone and a month later, TMO rolls out a promo plan that's the same or better in offering as this but only $100 a month. Will TMO let the person switch to that plan to save $20 a month? Or switch to any other plan, for that matter?

 

[boogas8]

Suppose someone signs up for this plan and gets the phone and a month later, TMO rolls out a promo plan that's the same or better in offering as this but only $100 a month. Will TMO let the person switch to that plan to save $20 a month? Or switch to any other plan, for that matter?

Who knows. As of now, based on the wording I would agree with you and say no. But based on my experience, with T-Mobile deals they tend to be more flexible than people realize. Also sometimes based on how they set t up in their system, there tends to be loopholes, we'll have to wait and see.

 

[Droids4lyfe]

You've just described a contract! The 'or else' is akin to an ETF.

An ETF is a fee in ADDITION to what you owe on a device. Not a contract, as you can leave anytime you want, you just pay what u owe on the phone.

Posted via the Android Central App

 

[Almeuit]

An ETF is a fee in ADDITION to what you owe on a device. Not a contract, as you can leave anytime you want, you just pay what u owe on the phone.

Posted via the Android Central App

ETF is an ETF -- If you're on contract you pay an ETF .. If you're on a device payment plan you have to pay the phone off. NO one has been on contract and hit with an ETF and then another bill for the remainder of the device in addition. That isn't even close to how it works since the point of the ETF is to lock you into service for so long due to the discounted phone.

 

[raino]

An ETF is a fee in ADDITION to what you owe on a device. Not a contract, as you can leave anytime you want, you just pay what u owe on the phone.

Then perhaps it's a misnomer because you pay $325-350 prorated by $5-10 per month of completed service.

Replace $325-350 with whatever TMO is charging for these phones and you have the same situation.

 

[raino]

NO one has been on contract and hit with an ETF and then another bill for the remainder of the device in addition.

Exactly. There's no disclosed cancellation charge per se. You start off with a set amount and get prorated each month. It's the same as buying a phone on EIP and paying it down each month, except with the higher priced phones, the contract ETF might work out cheaper.

 

[Droids4lyfe]

ETF is an ETF -- If you're on contract you pay an ETF .. If you're on a device payment plan you have to pay the phone off. NO one has been on contract and hit with an ETF and then another bill for the remainder of the device in addition. That isn't even close to how it works since the point of the ETF is to lock you into service for so long due to the discounted phone.

Not true at all, Sprint used to be , up until few months ago....if u had phone on payment plan and cancelled before 2 years, you had ETF of $350 plus what u owe on the device. I worked for them for almost 8 years, 5 months ago!

Posted via the Android Central App

 

[Almeuit]

Not true at all, Sprint used to be , up until few months ago....if u had phone on payment plan and cancelled before 2 years, you had ETF of $350 plus what u owe on the device. I worked for them for almost 8 years, 5 months ago!

Posted via the Android Central App

I never heard of this but maybe it is true. My family is all on Sprint (except me) and if they were to leave (we have looked into it) they would only owe the cost reamining on the phone (like T-Mobile) so not sure where you're getting that from.

 

[Almeuit]

Oh also I was Sprint and I simply paid the ETF since I got the phone for discount on a 2 year. I left after one year and only owed like .. $150+ or something like that (it dropped some each month). No extra "phone" payment.

 

[Droids4lyfe]

I never heard of this but maybe it is true. My family is all on Sprint (except me) and if they were to leave (we have looked into it) they would only owe the cost reamining on the phone (like T-Mobile) so not sure where you're getting that from.

They have since changed it......it was hard working for them while being a T-Mobile customer. It was hard telling customers Sprint was good, when they are absolute garbage...the last 2 years have really tanked. I was a manager.

Posted via the Android Central App

 

[raino]

They have since changed it......it was hard working for them while being a T-Mobile customer. It was hard telling customers Sprint was good, when they are absolute garbage...the last 2 years have really tanked. I was a manager.

Can you tell us the approximate time frame this policy was in effect, and when it was changed?