Ablosh overages

T-Mobile is abolishing consumer overages! Arriving as part three of its Uncarrier announcements, the development seeks to dropping domestic overage charges on all wireless service plans from the Deutsche Telekom-owned carrier.

This much-needed change now gives T-Mobile’s customers a piece of mind knowing they can safely consume data on the go without worrying about being slapped with exorbitant overage fees for exceeding their monthly data allowance.

If history is an indication, rival carriers should reluctantly follow suit or risk getting left behind. Again, no more overage fees on any of your wireless service plans with T-Mobile, not just the carrier’s popular Simple Starter plan that was announced last week…

T-Mobile wrote in a media release that its CEO John Legere laid down a challenge to AT&T, Sprint and Verizon to do the same because as many as 20 million Americans were hit with overage fees totaling more than $1 billion last year.

Today I’m laying down a challenge to AT&T, Verizon and Sprint to join T-Mobile in ending these outrageous overage penalties for all consumers – because it’s the right thing to do.

He also fired another potshot at the AT&T’s, Verizons and Sprints of this world.

For example, an individual on AT&Ts entry-level plan, advertised at $45 per month, will pay $125 if he uses just the average amount of data for a U.S. smartphone user (1.5 GB per person).

Legere even set up a petition to abolish overage fees on Change.org.

The changes will be put into effect starting in May for bills arriving in June. So what happens when you burn through your allotted data? Nothing dramatic. Instead of texting you that you’re now in the penalty zone, you’ll be able to simply buy more data or continue surfing the web at sluggish EDGE speeds, overage fees be damned.

“Regardless of whether you’re on Simple Choice, Simple Starter or an older plan, we’re abolishing overages for good,” said Legere. “Period.”

“If I’m right, the consumer wireless movement is rapidly approaching a tipping point,” the CEO noted on his blog, hitting that previous announcements are going to pale in comparison “to what lies ahead.”

As you know, last year the carrier banished annual service contracts and kill subsidies in favor of interest-free monthly installments.

Last week, T-Mobile introduced a new $40 Simple Starter Plan that includes unlimited voice/text and 500MB of 4G LTE data with tethering and no overage charges. As if that weren’t enough, the company is now selling all 4G LTE iPads (and other LTE-capable tablets) at Wi-Fi prices and offering an additional sixteen gigabytes of free high-speed 4G LTE data through the end of the year, free of charge.

Are you glad that T-Mobile is eliminating another stupid industry practice?

They are certainly feeling it, aren’t they?

  • Shawn

    Im starting to really like this guy. He is in the position to change the industry for the better.

  • Yes yes yes…continue on T-Mobile challenge AT&T some more.
    I reduced my bill by 15$ due to T-mobile’s pressure. I love this battle that’s going on.

  • Rowan09

    I’m confuse because you don’t get charged more on t-mobile after exceeding your 4G speeds, you just get slowed to Edge or 3G on tiered plans.

    • Stefano ‘Graziani’ Polo

      I was wondering the same and I think that’s how it ought to be. If you go over, you get slow speeds but aren’t penalized financially. If you don’t want slow speeds, bump up your tier. However 3G when you go over? If that’s true, that’s fantastic!!!

      There have been countless times while on Verizon, I had to turn my data off during the last week in my cycle so that I wouldn’t go over. I hate pouring more money into my wireless bill.

      • Rowan09

        Verizon is for the rich. While they do have great service they just charge too much. I’ve been hoping around to different carriers and I’m staying with MetroPCS since you get the $60 (taxes incl) with unlimited everything and no cap. I tried t-mobile (owns MetroPCS) and they offer the same service but for $30 more. I’m on AIO wireless (AT&T subsidiary) but they only offer 5GB of high speed and then slow you to Edge, AT&T however only allows AIO (now Cricket) to have a max upload and download speeds of 8mb and it’s too slow for me.

  • TonyVee73

    T-Mobile is looking to take over the world. Lol.

  • matt

    before may they didn’t have domestic overage fees so what are they stopping ?

  • nonchalont

    T-mo’s CEO is a great leader. He’s doing what’s right for people, because it’s the right thing to do. That’s the answer to a successful business.

    • Rowan09

      He’s doing what’s right for his business. If you look at what they did it’s really smart but all about making more money. The interest free deal for 2 years is great because it’s interest free, but it’s like being stuck in a contract until you pay off the phone. They just raised the price of the unlimited plan by $10 so the price you pay for service with a phone on installment will be over $100. They’re making some smart moves right now, but if they really wanted to be for the people include tax in their plans without an increase.

      • trumpet444

        “…but all about making more money.”

        As in every practical business in existence.

      • Rowan09

        Yes, but T-mobile isn’t really helping us out because they just came up with a smart way to charge us more.

      • True, I would be paying more if I bought a phone from them; $50/month (on Telus) vs. $50/month+$20something/month (non-subsidized). However, last time I paid for an on-contract phone, it was with my dad’s cash…nowadays, I just wait out the launch excitement and get a good-as-new unlocked phone on eBay or Kijiji.

      • Rowan09

        I usually just sell my older phone and get the new one. I basically pay the price it costs for a substidize model.

  • diggitydang

    I’m outside the US and don’t know about their specific plans, but wouldn’t abolishing overages just mean that everything is unlimited? How is this different from an unlimited plan? Hmmmm… maybe I’m misunderstanding… wouldn’t be the first time! 😛

    • Rowan09

      They already offer unlimited data on all their plans, the difference is the amount of high speed data you get. The unlimited data option costs about $90 a month with tethering and taxes.

      • diggitydang

        Ahhh… thanks for clarifying… I like this then… My plan in Canada covers me for 6GB of data, but I’ve only ever exceeded 2GB a couple of times, but I’m afraid of going over, so this would really help me save money if I’m really under that 2GB mark. Interesting… hope they do that up here then!

      • Rowan09

        No problem.

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  • Joey O

    So if I have an iPhone with no monthly data, could I go “over” my 0gb and say it’s an overage and therefore not pay for data? Even if it’s 2G it’s better than none.