T-Mobile to end overage fees for its customers, urges other carriers to do the same

tmobileoverages

The first of T-Mobile’s trio of new Uncarrier announcements was a Simple Starter plan with unlimited talk and text as well as 500MB of LTE data. T-Mo then followed that up with “Operation Tablet Freedom,” which knocks the price of LTE-enabled tablets down to equal their Wi-Fi-only counterparts and also offers 1GB of free data for voice customers. This morning T-Mobile has revealed its final Uncarrier announcement, and the good news is that it’s something that all its customers can benefit from.

T-Mobile has announced that starting in May for bills arriving in June, it will not charge overage fees of any kind. This applies to Simple Choice plans and the Simple Starter plan (neither of which had overages to begin with) as well as older plans.

Along with abolishing overage fees for all of its own customers, T-Mobile is now urging the other three major U.S. carriers to do the same. The magenta operator has launched a Change.org petition with the hashtag “#AbolishOverages” in an effort to get AT&T, Sprint and Verizon to stop charging overage fees for their own subscribers.

Overage fees can be a major pain for wireless customers, especially because they’re often extremely expensive for things like single messages or extra megabytes. T-Mobile’s decision to axe overages completely is a great Uncarrier move, and I’m sure that the Magenta Army is pleased that they’ll no longer have to worry about being hit with those fees.

We’ve seen the other three major U.S. operators emulate several of T-Mobile’s previous Uncarrier moves, like when they each launched their own early upgrade programs similar to T-Mo’s JUMP. It’ll be interesting to see if that trend continues with the latest move, especially now that T-Mobile CEO John Legere is directly calling those carriers out with a petition.

What do you think of this latest Uncarrier announcement? Do you think that AT&T, Sprint and Verizon will follow it by killing off their own overage fees?

Via T-Mobile#AbolishOverages petition

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  • Erik

    If I remove my messaging addon, will I still get the unlimited text with the new change? I have the family plan grandfathered.

    • no2apple

      Looks like yes.. I removed yesterday..

    • Jason

      In the text i received it said pay per usr fees would still be charged….I’d keep ur txt pack

    • Ever

      I talked to a rep yesterday and she said I did not need a text addon to get free texts. I’m going to wait until May 1st to make sure before I get rid of them.

      • Jason

        Best idea…You can always remove options but getting them back can sometimes be impossible….

  • JTrip

    How about making the next Uncarrier plan about making plans that everyone understands. Every time I read about a new plan I come to the message board and there are about 100 different opinions about what the plan actually means. I never fully understand them. Never.

    • Moby

      What’s hard to understand about Unlimited Talk & Text? What’s hard to understand about data will be slowed when you use a specific amount or it will never be slowed at all as in the case of the truly unlimited plans?

      • JTrip

        Read the message board. Look at the confusion. It’s the same every time T-Mobile announces a new plan.

  • Matt

    This is a great move, but now they have to keep expanding their network, I know same old song and dance. But they have no coverage at all in Alaska, for example, where all the other major carriers do. We need to keep it going magenta, keep expanding!!!

  • VG

    Uh, oh! Aio Wireless just announced multi-line plans with discounts called “Group Save” with an international feature add-on called “Aio Passport”. This is going to start another round of cellular battles. First time I’ve seen a prepaid carrier allow multiple lines on one account with discounts. Can’t wait to see how T-Mobile or MetroPCS responds! Prepaid has no taxes and fees (unlike postpaid plans), so this is huge. Anybody here ever tried Aio Wireless? I’m considering a move unless T-Mo responds.

    • VG

      Oops, I forgot that MetroPCS (a prepaid MVNO of T-Mo) does offer discounts for multiple lines, but the Aio Wireless discounts appear to be much better.

      • Tom

        I’m sorry to tell you this, but Aio Wireless already had Aio Passport added feature once the Aio Wireless started launching out to certain states, cities and area back in May 2013!!!! So you might wanna recheck on that info there buddy. Aio Wireless did not copy cat off of T-Mobile with the Aio Passport deal, knowing such feature already came with the company way before T-Mobile ever deciding to.

        • VG

          Thanks for the info. I’m not an Aio customer, so I wasn’t aware of the Passport add-on. But this new “Group Save” plan is mighty tempting. My biggest issue with T-Mo is the weak building penetration, and since Aio operates on the AT&T network, I’m thinking of jumping ship unless T-Mo can roll out that new 700MHz band sometime soon (which I know would require new phones to utilize the new frequencies). Just wondering if anyone here has actually tried Aio? I know the LTE is capped at 8Meg, and there might be some latency issues with going through an MVNO. Wondering if there are any other issues I’m not aware of?

        • Tom

          VG If I were you, I would jump ship myself. I already have. I’m now with Aio Wireless-(which is in the process with being rebranded into the new CRICKET branding, due to AT&T buying out the old Cricket Wireless owner Leap Wireless. With that happening, is what AT&T is in the process with merging its current No-Annual Contract carrier Aio Wireless with the old Cricket Wireless carrier to form a brand new No-Annual Contract carrier called NEWCRICKET). I’ve been doing so much better with Aio Wireless verses having to deal with lousy T-Mobile/MetroPCS now. Aio Wireless has been a thousand times more helper than T-Mobile/MetroPCS for that matter. They are Overly Friendly/Down-to-Earth people that you will ever meet. Actually 8Megs can actually go up to 12 to 15 mbps. The reason why they have 8Meg as advertized is because thats whats expected to happen. Aio Wireless works pretty much everwhere I go now. It even works in certain building where I’m always visiting out in, whether it be church, courtroom building and what have you. And if you help Aio Wireless pass out flyer, perhaps they’ll waive your activation fee of 25 dollars. Also their monthly plans do not tax. You’ll just pay a flate rated fee of either 25, 40, 50 or 60 dollars without the extra dollars on each plan per month my friend. Actually AT&T is in the process with getting more 700 spectrum, due to them aquiring Leap Wireless. Just because T-Mobile might be getting the 700 low band A Blocks spectrum, does not mean that it’ll make much of a difference anyways, you’ll still be lack of coverage in most other areas.

        • VG

          Thanks again for the info. I think Aio now supports SMS Short Codes, correct? If true, then I might save some cash and be able to use my existing unlocked GSM phones on Aio while simultaneously getting better coverage and signal penetration, and have the option of the Aio Passport add-on when my family goes abroad. I hate the taxes and fees that are on my T-Mobile Family Plan (they really do add up).

        • Tom

          Yes that is absolutely correct my friend. They now do support SMS Short Codes. And you are quiet welcome. Do you have Facebook??

        • Jason

          If your so happy with AIO why are you trolling a TMo News site?
          You don’t work there If you pay exactly $50 no taxes added remember lol….
          May i ask whats your motivation of trolling? pure boredum?

        • Tom

          Hey Aio Wireless Group Save line was a copy version of Sprints Framily group plan lines verses it being T-Mobiles!!!

        • VG

          Yes, but Aio uses the AT&T network (which is way, way better than the Sprint network), and Aio is a prepaid carrier (which means no taxes and fees added to the monthly charge).

        • Tom

          Yes I know that. I know Aio is on AT&Ts network. Remember now, AT&T created Aio Wireless. So yes as a whole it is an AT&T CARRIER, except you do not have to worry about roaming, or be stuck in a contract is what that one is all about my friend.

    • Jason

      Prepaid have taxes included with monthly fee….

      Is VG and Tom the same person? AIO must be really bad if your having conversations with yourself….

      Service So Super it makes you go schitzo….
      AIO can use that for their motto and I promise I won’t sue….lol

      • thepanttherlady

        Behave Jason, or I’m going to have to use my “mom” voice on you. :)

        • Jason

          :) :) :)

        • Tom

          Are you a Moron just like Jason is or are you just straight out un knowledgeable?? Are you kidding me???? Do you even use Aio Wireless?? If you want you can call up an local Aio Wireless store yourself just to get told how much of an moron you really are just like Jason is. Go get knowledged. Aio Wireless only taxes on everything else you Dummy. Do you want My local stores #??? Im gonna laugh hard at you due to you and Jason not knowing what you guys are talking about. Pretty soon T-Mobile will be shut down by another company I promise you that much. Haaa. Sprint wont buy Tmobile, somebody else will.

        • thepanttherlady

          LMFAO!!!

          What part of taxes are INCLUDED in the rate plans do you not understand? Here you go:
          Aio makes wireless easy with a friendly in-store and online experience and three simple plans to choose from. All three plans include unlimited talk, text, and data—with a pre-established amount of high-speed access, including 4G LTE.  Plans range from $40 to $70 per month, with taxes and fees included. 

          Difference between you and I? I have AT&T and AIO Wireless’s own websites stating exactly what both Jason and I have said and don’t need to act like a child to make a point. :)

        • Paul

          Is it still a safe assumption that these “sub-providers” are not given network priority over, in this case, AT&T customers? Or even post-paid customers?

          Also, AIO doesn’t seem to offer unlimited data. So comparing postpaid Magenta and AIO isn’t exactly fair.

        • thepanttherlady

          I did a search on your first question and while there doesn’t appear to be an “official” answer, many are saying there isn’t much difference in regard to network priority. Keep in mind that AIO does not offer roaming so you won’t get service where there is no coverage. I did try to compare Magenta and AIO’s plans. The closest I could come was $10 less for AIO for two lines but you get 500MB less in data than Magenta and $20 less for AIO for three lines. Same thing with the data in that scenario.

        • Jason

          AIO has unlimted data just throttled after lte it says….

        • Paul

          Only, T-Mobile offers unlimited LTE data was what I was pointing out.
          You are correct, you lose LTE after a certain limit.

      • VG

        Sorry to disappoint, but Tom and I are two different people, and we don’t know each other. I’ve been with T-Mo since 2005 and have been generally happy with the service considering the prices I’ve been paying, but am always looking for a better deal. However, I’m thinking T-Mo will respond to this Aio “Group Save” plan pretty quickly. I give kudos to John Legere for shaking up the wireless industry; without John, things would be the “same old, same old” with high prices and hidden phone subsidies built into monthly charges.

        • thepanttherlady

          It will be interesting to see if they do. The price difference is really not all that much. $10 for two lines and $20 for three but with T-Mobile you’re getting more data (3GB versus 2.5GB). That’s also not taking into account that taxes and fees are included in the price of Aio but not T-Mobile.

        • VG

          I’m paying over $31 in taxes and fees per month on top of the base T-Mobile monthly charges for a 5-line Family Value Plan. That’s over $370 a year in taxes and fees! So, I hope all the T-Mo fans can understand why I might want to jump ship to a prepaid carrier that offers the same or better coverage.

        • no2apple

          Jump right now. What you waiting for ??

        • VG

          Waiting for T-Mobile or T-Mobile prepaid to respond with something similar so that my total out of pocket cost (including ALL taxes, fees and surcharges) is the about the same.

          A lot of people seem to ignore the taxes, fees and surcharges that appear on all post-paid plans; I am very much aware of the amounts, and would rather keep that money in my pocket if possible.

        • Jason

          What state do you live? Holy taxes….MN TC Area and it like $7-8 here…..
          I remember on SprintForums ppl were using out of state zip codes to dodge crazy tax like that……

        • VG

          NYC. There are all sorts of crazy taxes and surcharges above and beyond the standard 8.875% sales tax.

        • Jason

          Remind to never buy anything if in NY, thats outrageous…. LOL
          You could always give AIO a testdrive :)
          I know Sprint would let you put cell lines on hold for 3 months not sure about TMO…
          I doubt TMo would discount or migrate your value plan to prepaid….

        • Jason

          My apologies for the joke but with the back forth your doing a good job of feeding a troll….

        • VG

          Understood. I would love to stay with T-Mo, but now that AT&T is allowing BYOD (a relatively new concept to AT&T and their MVNO subsidiaries) and dropping prices to seriously compete with T-Mo, I have to give T-Mo competitors a look. But I think T-Mo will have to match the Aio “Group Save” plan on the T-Mo Prepaid division by offering multi-line discounts (or so I hope).

        • RLB63

          I actually pay less on my grandfathered plan than the current simple choice. I have 5 lines only 600 anytime minutes but almost never get close to the limit so I don’t need more. So now that I have to pay for my phone’s it is a major increase. Please stop getting upset about the old plans. I was able to get an s3 when top of the line for $1. So with taxes each phone costs over $700. With 5 lines that is an additional $3,500 over 2 years. The New plans are not that great….

      • Guest

        AIO isn’t a real word in the English. It is a Spanish word to say hello to someone you know or to announce when you are going to say something. AIO is targeting latin people. kind of not schizo at all. just smart marketing making millionaires that much more money. do your research before diagnosing someone with a mental health condition here on a t mobile news blog.

        • Jason(Tom’s BFF)

          Tom?
          Diagnosised?
          So serious let the joke make you laugh, if its not funny to you no point it letting your blood boil….

        • Jason

          I missed something really big in your post, you thought when you read the FAQ at AIO when they stated Latin you assumed Spanish….. Latin words are words from Ancient Rome not Latin America!!! ROFL

          If they are targeting Romans, AIO is really screwed because that was 2000ish years ago…..he he he

          Do your research…..noted

    • Guest

      you are on the wrong blog

    • Jason

      How’s AIO err Cricket treating you?

  • mjsmith64 sucksDick

    I pay $10 a month for unlimited text, guess I can drop that!

    • Jason

      I wouldn’t if i was you…..
      If you drop the the text pack it drops to pay per use which isn’t an overage…..
      Best to wait til after May 1st then drop because if you want texts added you might have to switch to simple choice….

  • MaxPowers .

    Doesn’t really mean much when most of their customers already had unlimited text/voice and they already didn’t charge for data overage.

    • Jason

      correct its pretty much for legacy accounts before unlimited was the only offering for voice and data….

  • no2apple

    Can the moderator Kick VG and Tom who are trolling hard and trying to get business for Aio.. Paid trolls

    • VG

      Dude, I am a bonafide T-Mo customer who hates paying additional taxes and fees above and beyond the advertised monthly rates. I would gladly convert my 5-line T-Mo Family Value Plan to T-Mo Prepaid (or MetroPCS) if I can get the appropriate discount for multiple lines on one account. Unfortunately, T-Mobile Prepaid does not offer this, and the MetroPCS discount for multiple lines is not significant enough. As I wrote below, I’m paying over $370 per year in additional taxes and fees above and beyond the base T-Mo charges. $370 per year is a significant amount of money that I’d rather not pay for decent cell phone service.

      All I am saying is that Aio is offering a significant multi-line discount that is not currently matched or offered by T-Mo, and I hope that T-Mo will offer something similar so that I don’t have to bother switching and porting numbers to Aio. And, for the record, I am a fan of unlocked GSM phones, so I will never join Verizon or Sprint. T-Mo and AT&T (and their respective MVNOs) are my only choices.

  • just me

    T-Mobile should just call it what it is.
    “We are switching you to our new plans on May 1, whether you like it or not.”
    I called, i get to pay more every month. Thanks T-Mobile.

    • Jason

      How so?

    • Ky

      As long as I don’t have to pay more than what I am paying now. If they increase my prices, I will drop them like a bag of dirt.

    • Moby

      This is false information. They are not switching plans and are not requiring anyone to pay more.

      • just me

        That’s what the customer service rep told me.
        It that is not correct, then T-Mobile should not have their employees telling people this.

    • Irfan

      customers service sucks t – mobile update customers early then its service representatives ….different calls get different answers from different people and same in store

  • Or Nah

    haha, aio :’)

  • LOVE

    I imagine the execs of Big Red Ole Blue and SoftBank laughing and joking to this announcement saying “Well.. that’s their loss.. ha haha ha hahahahahhaha!” and while toasting a glass of champagne from their million dollar offices on the 45th floor overlooking the downtown…this UnCarrier move is great, but I really doubt VW At&t or SoftBank are going to follow format Magenta

    • Jason

      Agree 100%
      Until the gap is narrower, TMo influence can be effective but there is limitations

    • DH

      You should listen to ATT or Verizon’s earnings call. Not going so well.

  • Irfan

    pretty tricky BS , i have a old value plan and i am happy with that and had 500 min on 3rd line called customer support to confirm that what happen now from May 1st a my 500 minutes converted to unlimited she said no you will not over charge on overage she said its not unlimited we as a T Mobile call it no overage , really sound very interesting mean this is experimental if works good to go other wise go to her … every represenative have different oproch and comments , i visited today tmoble store they even dont know about it …super duper big drama

  • Jason

    ROFL :) ;P
    So your trolling TMonews???
    If you think that $50 you give AIO doesn’t include taxes there is no way I could make any sense to you because common sense has left your building a long time ago for u…

  • Jason

    How does this not get warned/deleted?
    Mine are atleast clever, this guy totally wrong gets to use loser, moron, tells u to shut your face ( I’m still trying to find a shut button), big dummy….. (—B /sarcasm
    Can I call him stinky pants w/o warning? ROFL

    BTW HOmey Urkelized InterweBz GanSterr I posted a direct link to AIO site for terms which clearly stated the opposite of what your posting…
    If your gonna be a fanboy atleast know what team your cheering doo doo head

  • thepanttherlady

    I missed it. :( Dude writes a flipping book for every comment.

  • Paul

    Aaahhhhhh, the drama was getting good!! And I was hoping to…read…the mom voice. Alas, I’m robbed.

  • thepanttherlady

    LOL! Well Tom called me an animal so I guess I could indulge a little and give you my panther roar?

    Rawwwwwwr! =P

  • Paul

    I expect nothing less than a rawr from the Panther Lady, an animal fo sho!