T-Mobile USA is luring customers away from its Tier 1 competitors by offering credits toward their wireless phone bills. From now until June 17, the carrier will give new customers who switch to T-Mobile from Verizon Wireless (NYSE:VZ), AT&T Mobility (NYSE:T) or Sprint Nextel (NYSE:S) and sign a two-year contract a $100 credit for smartphone lines and a $50 credit for feature phone lines.
The company is offering the promotion in seven markets across the country, including Denver; El Paso, Texas; Kansas City, Mo.; Philadelphia; Providence, R.I.; St. Louis; and Tampa, Fla. The credit is for the first two lines transferred. Customers will receive a $10 per month bill credit, starting within three billing cycles of activation. The credit will continue until the full credit amount is reached as long as the customer remains active and in good standing.
Despite AT&T's proposed $39 billion acquisition of T-Mobile (which was announced in March), the two companies will remain independent until the deal closes, assuming regulators approve the deal. T-Mobile lost a net total of 99,000 subscribers in the first quarter, including 471,000 net postpaid subscriber losses in the quarter.
Meanwhile, other carriers have been trying to lure away T-Mobile's customers. Sprint has been running a promotion from the start of May that, while not specifically targeted at T-Mobile, was influenced by the proposed acquisition. Sprint will offer $175 in credit to business customers who switch to Sprint and purchase any phone; $125 for individual customers who buy a smartphone; or $50 for individuals who buy a feature phone. All accounts must be ported to Sprint from existing contracts, and customers must sign up for a two-year contract and remain active for 61 days. The offer runs through June 23.
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