T-Mobile Getting Rid Of Overage Fees, Challenges Rivals

T-Mobile is dropping overage fees for all U.S. customers starting May 1. It has also started a petition for its rivals to do the same.
Posted at 4:54 PM, Apr 14, 2014

T-Mobile claims overage fees cost U.S. consumers about $1 billion last year. So it's dropping the practice.

CEO John Legere announced Sunday T-Mobile will get rid of overage charges across all U.S. consumer plans starting May 1. And he's pressuring other carriers to follow suit. (Via T-Mobile)

"We're putting an end to the fear of getting one too many pics or clicking on one too many links and bam, you're hit with overages." (Via T-Mobile)

T-Mobile has even created a petition for its campaign, calling out AT&T, Verizon and Sprint.

On the surface, it looks like a bold move by the "Un-carrier" and its CEO. (Via T-Mobile)

A writer for CNET says it ends what's been a few quiet months: "As the No. 4 nationwide carrier, the company has had to put on a brash face to garner attention and combat its larger competitors' more extensive marketing reach."

But what about the money? Overages — as T-Mobile says — bring carriers cash.

The Verge points out this "isn't as drastic or game-changing as it initially sounds." T-Mobile might not actually lose out on much.

The company already ditched overage charges with its Simple Choice plans, which prompt users to pay only when they want more. (Via T-Mobile)

The no-overage idea will simply slow down your data once you've reached your allotted amount — what's known as throttling. But throttling and overage charges are really only issues if you go over your limit.

Both Verizon and AT&T allow consumers to sign up for alerts that will warn them when they've hit their limit.

Sprint said in a statement, "Customers can sign T-Mobile's petition or they and their friends and family can sign-up for the Sprint Framily Plan with unlimited data."

So yes, John Legere is trying to shake up his competitors with the move and petition. But NBC reports that's not a surprise.

"Legere has a reputation for being a corporate provocateur. His past escapades include crashing an AT&T party and trashing competing carriers on-stage at the Consumer Electronics Show (CES)."