T-Mobile USA Stops Automatically Billing Customers for Exceeding Tariff Allowances
Published on: 14th Apr 2014
T Mobile USA says that it will cease charging overage fees when a customer uses more of the mobile network's services than they were expecting to be charged for.
The company's bombastic CEO called on other mobile networks to do the same.
"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," said John Legere, president and CEO of T-Mobile.
"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." he added.
However, the company isn't really scrapping overage charges, it simply cuts the customer off until the customer pays for more access.
That contrasts with other approaches which vary from simply adding the extra amount automatically to the customer's bill to throttling the service so that there is no extra charge, but the download speed slows substantially.