Saturday, November 29, 2008

T-Mobile’s contract customers must pay £75 to upgrade

Contract customers can pay £75 or take a £5 discount and wait until January

T-Mobile’s contract customers must pay £75 to upgrade their handsets in a new scheme designed to stall upgrades and save cash until the new financial year.

For those not wishing to shell out, T-Mobile is offering customers a £5-per-month discount in what is being labelled a ‘Christmas loyalty bonus’.

The inability for customers to upgrade their handset for free has prompted many independent retailers to churn them onto other networks and even, in some cases, churn them off T-Mobile, only to sign them back on as a new customer – a tactic that actually costs T-Mobile more money than a conventional upgrade.

The £75 fee even extends to T-Mobile’s direct channels, but staff at the retailer’s stores said they could use the retention team to negotiate a free upgrade over the phone in exceptional circumstances. T-Mobile will also try and wean the customer onto the Google G1 phone, which is exempt from the restrictions.

T-Mobile staffers have said, as a result of the £75 charge, most customers choose not to upgrade and have money off their contract instead.

Full story here

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