Jan 09, 2014 11:03 AM EST
T-Mobile to Cover Fees For Customers Who Switch Carriers

T-Mobile announced at the International CES show on Jan. 8 that it will pay early termination fees for those who leave companies like AT&T, Verizon, or Sprint, according to Newsday.

CEO John Legere's company has been trying to reinvent itself the last couple of months, calling itself the "Un-carrier," and is now offering to pay up to $450 to offset termination fees from other carriers to get customers to switch to T-Mobile.

"What we're doing is ending contracts for everybody, forever," said Legere, at the International CES show. "What we are going to do is force the industry to get healthier, force the industry to change. I want every customer to have constant, complete choice."

T-Mobile customers can pay a flat monthly rate fee and drop their service whenever they please, compared to the standard 2-year contracts companies like Verizon requires when purchasing a phone.

The strategy worked last year, as T-Mobile added 4.4 million customers in 2013, according to Newsday.

"He's figured out that in this business public perception really matters," said Jan Dawson, a mobile industry analyst with Jackdaw Research in Utah, according to The Boston Globe "From a consumer perspective, what T-Mobile is doing is good for everyone. It's lowering pricing. It's triggering other carriers to do similar things."

Craig Moffett, senior research analyst at Moffett Nathanson LLC pointed out though that there are flaws to Legere's plan, as you wind up paying for your phone even after you've paid it off.

Legere reportedly crashed a party at CES hosted by AT&T and was kicked out. He addressed the incident on his Twitter account.

"It's fun to win," Legere said at CES. "It's even more fun when somebody loses and hurts while you're doing it."

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