T-Mobile Stops Charging Overages
Once again proving it cares little for conventional thinking, T-Mobile is eliminating overages charges. That means no more fees for going over minutes, data caps or text messaging limits, starting in May for bills arriving in June. This change will apply to Simple Choice, Simple Starter and older plans.
According to the un-carrier, more than 20 million Americans were charged $1 billion in overage fees last year. As an example, the company offered an example that said an individual on AT&Ts entry-level plan, which costs $45 per month, would pay $125 if that person were to use the 1.5GB of data that's average for most people. T-Mobile considers its move to eliminate the overages revenue stream as a challenge to the other big carriers.
“Charging overage fees is a greedy, predatory practice that needs to go,” said John Legere, president and CEO of T-Mobile in a press release. “The worst thing about these overage fees is that they’re often inflicted on those who can least afford them. I personally won’t be satisfied until we obliterate this shameful practice from the entire wireless industry.”
Legere also started an online petition via Change.org that calls on AT&T, Sprint and Verizon to stop charging overage fees as well. As of press time, more than 300 signatures had been added to the petition.