Is It Time for You to Switch to T-Mobile?

T-Mobile's (NYSE: TMUS  ) aggression continues unabated. The magenta carrier unveiled Un-carrier 5.0 and 6.0 earlier this week, just hours after unveiled its Fire Phone. When combined with the four previous Un-carrier initiatives, there are a lot of reasons to switch to T-Mobile.

Test Drive is exactly what it sounds like. Prospective customers can get a free iPhone 5s and use it on T-Mobile's network for a week, with Apple providing the devices for free. T-Mobile says that 12,000 people have signed up for Test Drive in the first 24 hours. Music Freedom exempts eight of the most popular music streaming services from counting toward data caps.

One important benefit of Test Drive is that there are no explicit financial costs to T-Mobile, unless it pays Apple for any damage done to the loaned units. Compare that with T-Mobile's early termination fee offer, which cost $100 million last quarter. Test Drive is an important vote of confidence in T-Mobile's network strength, as it has caught up quickly with larger rivals. It even beat AT&T and Verizon to deploying VoLTE, which is an important shift in the industry.

T-Mobile is spending heavily to acquire new customers, but that momentum will likely pay off in the long run as churn continues to decline.

In this segment of Tech Teardown, Erin Kennedy discusses T-Mobile's tactics with Evan Niu, CFA.

(Relevant segment begins at 2:56.)

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Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 22, 2014, at 1:34 AM, theoryofjack wrote:

    I switched from AT&T to T-Mobile 3 years ago and happier I could not be.

    TM has incredible data service and customer service. I laugh at people who pay twice as much for the same thing at AT&T.

    Good luck with that.

  • Report this Comment On June 29, 2014, at 2:23 PM, dguppy14 wrote:

    T-Mobile pays off your bill, but only with the contingency that the customer switch to T-Mobile, which may not be the best fit. Luckily Cellbreaker does get a customer out of their contract without Early Termination Fees so that they don't get extremely large bills, like this one, for cancelling their contract.

  • Report this Comment On July 19, 2014, at 5:22 PM, OldGuyKnows wrote:

    @dguppy14 Saw pissed off Sprint customers recommending CellBreaker on Sprint's forum and also saw them recommended in this Money article last week: Cool service if it works (which I'm assuming it does since it's being featured in Money). So for anyone not ready to switch to T-Mo, maybe the question is: "Is it time to switch with CellBreaker?"

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(Warning, it may shock you)
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Evan Niu

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

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