T-Mobile showing loyalty to existing customers

by Joe P on January 28, 2010

Every so often we’ll see a cell phone operator do something for new customers only. In fact, with the U.S. wireless industry approaching a point of saturation, I’m surprised we don’t see it more. Instead of signing up brand new customers, carriers have to pull subscribers from their rivals. This means giving incentives to new customers. But it also means, sometimes, not offering those deals to your existing customers, which is just bad business. If they feel slighted, then they might leave, which offsets some of the new additions. We saw T-Mobile do this with the Nexus One. But now T-Mobile will introduce a program that will allow current customers to upgrade devices before their two-year contract expires. That should put them in good graces with customers who renew their contracts only to find an excellent device has been released shortly thereafter.

Customers using normal phone — dumbphones, if you will — can upgrade almost right away. Early upgrade requires just one to 11 months of service on an individual plan of $29.99 or higher, or a family plan of $49.99 or higher. Once qualified, customers can take advantage of new customer pricing. Users wanting a smartphone upgrade face the same plan requirements, but must have service for over 12 months.

Though unmentioned in the PhoneNews.com report, I presume you’ll have to extend your contract two years to get the new customer price. Otherwise this would be a giveaway of sorts, and I don’t think telecommunications companies are in the business of giving things away.

For smartphone users, here’s a list of phone eligible for the new customer discount