I'm wondering if T-Mobile customers will be free to go to other mobile carriers before their 2 year contracts are up, if/when the AT&T merger goes through.
I was interested in buying one of the newer smartphones on T-Mobile, but only because the phones I want on other networks are coming out in Q4/Winter. If the deal goes through would I be able to circumvent an early termination fee with T-Mobile?
(Please Note: My question is not whether or not you believe the deal will go through, how terrible or awesome it would be, or this network vs that network. My question is about the validity of the T-Mobile contracts if/when merger goes through).
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Are we free from our T-Mobile contracts if/when the AT&T merger is completed?
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SteveoSaurusRex's pick
While I'm pretty sure AT&T wouldn't have any legal obligation to let you out of your contract, I suspect if you make a big enough stink you might be able to get out without an early termination fee.
I also have a feeling that as soon as the deal closes either Sprint or Verizon (or both) will do a big promotion for T-Mobile subscribers offering to cover the cost of their ETF if they'll jump ship (Sprint is basically already doing this: spantechular.com/2011/05/11/sprint-targeting-uncer...). Even if they aren't advertising an offer around the time you want to leave it probably wouldn't hurt to call them up and ask.
There's no guarantee, but I think you have a decent chance of being able to get out of the fee.
I also have a feeling that as soon as the deal closes either Sprint or Verizon (or both) will do a big promotion for T-Mobile subscribers offering to cover the cost of their ETF if they'll jump ship (Sprint is basically already doing this: spantechular.com/2011/05/11/sprint-targeting-uncer...). Even if they aren't advertising an offer around the time you want to leave it probably wouldn't hurt to call them up and ask.
There's no guarantee, but I think you have a decent chance of being able to get out of the fee.
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SteveoSaurusRex's pick
Doesn't look like it.
newsroom.t-mobile.com/articles/more-information-at...
Q: Will my rate plan change because of the acquisition?
A: All customer contracts entered into before the change of ownership will be honored [for their applicable period].
Q: Will my service or bill change due to the AT&T announcement?
A: No. While AT&T and T-Mobile have agreed to an acquisition, it will not be finalized for an estimated 12 months. Until that time, T-Mobile customers will not see any significant changes to their current T-Mobile experience as a result of the pending transaction. If the acquisition is approved AT&T will honor the terms of each T-Mobile customer’s contract.
newsroom.t-mobile.com/articles/more-information-at...
Q: Will my rate plan change because of the acquisition?
A: All customer contracts entered into before the change of ownership will be honored [for their applicable period].
Q: Will my service or bill change due to the AT&T announcement?
A: No. While AT&T and T-Mobile have agreed to an acquisition, it will not be finalized for an estimated 12 months. Until that time, T-Mobile customers will not see any significant changes to their current T-Mobile experience as a result of the pending transaction. If the acquisition is approved AT&T will honor the terms of each T-Mobile customer’s contract.
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If you got a phone with your contract, then probably not, because the contract is being used to subsidize your phone. But even if you didn't get a new phone, I don't think you can jump ship. If they decide to change/shut down T-Mobile services after the merger is completed they're going to phase out those programs—i.e., stop offering T-Mobile contracts and let the old ones expire—because anything else (like letting people out of their contracts early) would be a logistical nightmare.
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You will carry on with the contract, I'm sure. On the plus side, you will also carry on with the same monthly charge, which would be a good thing.
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You will be stuck paying your T-Mo bill until the end of your contract, and AT&T will be stuck charging you less for a service that they charge their clients more for each month.
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By the time this deal is actually approved your contract term will likely be completed! The approval process for this deal is going to be arduous.
Of course, it will mostly be posturing and the deal will be approved, but it will be a drawn out process.
Of course, it will mostly be posturing and the deal will be approved, but it will be a drawn out process.
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Only if AT&T makes no changes to your contract. There is actually a case to be made to renew your contract before the end of the year - you will get the original T-mobile service agreement even after AT&T takes over. You will just have to deal with AT&T's lousy customer service. If AT&T makes a change to your contract - it could be anything, then they have to let you out of it and you can search for a new provider.
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My primary concern at this point is when to sell my Nexus One. On the one hand, I realize that the killing of T-Mo's 3G towers is VERY far down the line, but for someone buying the phone from me it might not be, and that lowers what it's worth.
On the other hand, after having the Nexus One I have high standards for the phone I'd replace it with, and none of the ones out there right not meet those standards.
I know it's absurd to want to sell my phone now, but I can tell you that since the announcement of the purchase, the value of my N1 on Gazelle has dropped $50. I haven't looked to see what the average price drop on ebay or something might be, but I wouldn't be surprised if it were lower just out of perception.
Either way, I'm not on contract, so I'm free to go to any carrier I like, and there's not a chance in hell I'll be moving over to AT&T. I just got out of there! :)
On the other hand, after having the Nexus One I have high standards for the phone I'd replace it with, and none of the ones out there right not meet those standards.
I know it's absurd to want to sell my phone now, but I can tell you that since the announcement of the purchase, the value of my N1 on Gazelle has dropped $50. I haven't looked to see what the average price drop on ebay or something might be, but I wouldn't be surprised if it were lower just out of perception.
Either way, I'm not on contract, so I'm free to go to any carrier I like, and there's not a chance in hell I'll be moving over to AT&T. I just got out of there! :)
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