I have been part of my parent’s T-Mobile family plan since 2003. In February 2006, I sent my phone (a Motorola T721) to my mother, and purchased a Samsung SGH-D600 (on eBay, unlocked, with O2 firmware). Sadly, it’s beginning to show signs of aging and needs replacement. Meanwhile, my parents have upgraded their phones, extending our service contract(s) each time.
Today, I called T-Mobile (611) and spoke with a customer service representative about contract duration, termination fees, and pro-ration. He politely informed me of the following:
- Each phone line on a family plan is its own contract
- T-Mobile offers no pro-ration of termination fees
- The early termination fee is $200 per line
Only 1 out of 3 family plan lines has an expired contract. The customer service rep did his dutiful sales work and mentioned how steeply he could discount a T-Mobile PDA phone, after admitting that he personally wants an iPhone.
I would like to switch to AT&T because they offer the iPhone, and I can save 22% on their voice plans through my corporate rate. So this afternoon I went to the local AT&T store and asked them how they could accommodate someone with the following desires:
- 1 family plan
- 3 lines
- 1 iPhone
- 1 data package for iPhone
- Corporate discount on voice service
- 2 free or cheap voice-only phones (for parents)
Unfortunately, they won’t discount the monthly plan further and can’t buy out my contract or discount the iPhone. Our family plan has probably netted out to $110 a month since June of 2003. That’s about $7,000. From that, one can deduct the cost of 2-3 very cheap voice-only phones for my parents. Keep in mind I’ve been using my own (unsupported) phone, despite the fact that the service rate is not discounted. They did not subsidize the cost of my phone – I acquired it on the free market.
It concerns me that AT&T does not value our business at $400 (a nominal 5.7% profit margin). I would be willing to pay for the $199 iPhone myself. But I’m sure as hell not going to pay $600 ($400 in early termination fees and $199 for the iPhone).
