T-Mobile No Contract Plan
Do you hate having a 2-year cell phone contract? T-Mobile, one of the largest cell phone providers in the United States, has finally made it possible. T-Mobile is now offering new customers the ability to switch their current cell phone service with their current provider to T-Mobile's No Contract Plan. The best part of it is that T-Mobile is offering to pay the early termination fee!
What's the catch?
Of course, there has to be some gimmick. There's no way a cell phone company would pay those ridiculous fees out of the goodness of their hearts. The fact is, T-Mobile has found an effective way to market to the consumer by listening to the complaints.
Cell phones have become a part of everyday life for most, and a necessary evil to some. However, unlike many countries throughout the world, cell phone carriers in the U.S. offer customers reduced prices on cell phones in exchange for a long-term contract agreement. The length of the agreement is typically 2 years. The average discount on a cellular device can range from $100.00 to $500.00.
The fact is, T-Mobile knows that cell phone customers want the freedom to choose and hate being bound by contracts. In the end, the customer has the ability to cancel their services without a huge early termination fee (ETF).
Then, how do they make money?
Cell phone companies, including T-Mobile, generate profits through service contracts and fees. Essentially, the company makes enough money from your monthly fee to cover the cost of the phone. Contracts were implemented to provide a way for cell phone companies to ensure that you would remain a customer for 24 months. In the end, the company is able to cover the cost of the phone and profit from the sale of wireless services.
Is T-Mobile just buying me a new phone?
No. The new T-Mobile plans allow you to purchase your phone in installments over a period of time. The agreement forces you to pay the difference that you owe in the event you decide you no longer want T-Mobile services.