Dead Ringer: T Mobile puts squeeze on competition

02/06/14 by Mike Catania

T Mobile might be the third biggest cell phone company in the world, but their latest marketing campaigns shows enough swagger to be number one.
The latest brash and bold move from T Mobile could spark a trend in the cell phone sector that changes the landscape of how companies lure consumers from one provider to another. T Mobile decided that gaining business through persuasive marketing should come from somewhere other than the traditional methods.
Like their back pockets.
T Mobile is making a play for those customers who may be upset or disgruntled with their current cell phone provider by offering to pay early termination fees for those who can't wait a year or two to switch.
They've released a series of high energy, youthful television commercials in recent weeks to suggest that it's time to "break up" with your current cell phone company. The thinking behind the sales pitch of sorts is two fold: gain business and prey on any customer who's had a bad experience with their current provider, no matter how trivial it might have been.

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In addition, T Mobile featured the polarizing Tim Tebow in their Super Bowl ad and made it a point to tout that they don't believe in contracts, obviously a play on the fact that everyone's favorite unemployed signal caller is current devoid of an NFL deal.
This latest twist is turning plenty of heads but hardly is surprising for a number of reasons. The cell phone business is tough, competitive and an all out war between the heavy hitters in the industry, along with plenty of second tier companies that don't have the flash or flare of AT&T or Verizon but still manage to carve out a niche for themselves.

With only so many customers to go around, T Mobile jumped the gun accordingly and did the obvious in offering to pay customers to switch to them. One of the bigger reasons customers choose not to switch providers is because they really don't have much say in the matter. That two year agreement hamstring those who don't have an extra $200 to spend to break a contract.
Despite most companies offering non contract plans, the majority of consumers still abide by the two year rule. Breaking up is truthfully hard to do in this instance thanks to the heavy price tag put on quitting early.
Now, T Mobile puts the power back into you hands. And don't be surprised if you see the rest of the cell phone company crowd follow suit and take the lead paved by T Mobile. You can never have enough business or revenue, whether you're Verizon or Cricket Wireless.
These companies are like any other engaged in business warfare: they'll find a way to differentiate by any means necessary, even if that means spending their own money to make more of it.

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