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T-Mobile CEO John Legere shreds AT&T and its $450 offer to grab his customers

Posted: , by Alan F.

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T-Mobile CEO John Legere shreds AT&T and its $450 offer to grab his customers
This morning, we told you about AT&T's $450 offer to T-Mobile customers willing to switch carriers. With T-Mobile expected to make a blockbuster announcement at CES, some are expecting the nation's fourth largest carrier to be willing to pay off the early termination fees for some customers if they switch to T-Mobile. That sounds like a very expensive proposition, but AT&T must feel that some news is coming that threatens them. Thus, this morning's news.

T-Mobile CEO John Legere wouldn't be one of the most influential people in the industry right now if he sat back and let the competition try to take away his customers. So he responded to AT&T's offer, and he did so in typical Legerian fashion. First, the CEO displayed his razor sharp wit in a tweet to AT&T CEO Randall Stephenson, and then he released an official statement. First, let's recap AT&T's plan. Switch from T-Mobile and the nation's second largest mobile operator will give you as much as $250 in a promotion card to be spent on AT&T equipment and services only. The remaining $200 goes to those T-Mobile subscribers who open an AT&T account and buy a phone using AT&T Next, or activate their own phone on AT&T's pipeline.

Legere's tweet references the spectrum and the $3 billion that AT&T had to fork over to T-Mobile for walking out on its $39 billion bid to buy the carrier. When AT&T pulled out of the deal, it triggered the break-up fee. You can check out the tweet below. In an official statement, the executive calls AT&T's actions "a desperate move". Legere says that T-Mobile customers won't be fooled and customers "will still feel the same old pain that AT&T is famous for......the competition is going to be toast!" He also hints that the announcement at CES next week is going to remove many pain points for customers.

"This is a desperate move by AT&T on the heels of what must have been a terrible Q4 and holiday for them. I'm flattered that we have made them so uncomfortable! We used AT&T's cash to build a far superior network and added Un-carrier moves to take tons of their customers - and now they want to bribe them back! Consumers won't be fooled...nothing has changed; customers will still feel the same old pain that AT&T is famous for. Just wait until CES to hear what pain points we are eliminating next. The competition is going to be toast!"-John Legere, CEO, T-Mobile

Again, we have to hand it to John Legere. He is not your typical CEO sitting in an ivory tower, miles away from his customers. This guy is more like one of his own subscribers which is why he seems to have great insight into what T-Mobile account holders are looking for.

John Legere shreds AT&T's plan to grab T-Mobile customers

John Legere shreds AT&T's plan to grab T-Mobile customers


source: @JohnLegere, T-Mobile via AndroidCentral

67 Comments
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posted on 03 Jan 2014, 21:51 19

1. PapaSmurf (Posts: 7641; Member since: 14 May 2012)


Lololol I love this guy.

posted on 03 Jan 2014, 21:55 15

2. Droid_X_Doug (Posts: 5578; Member since: 22 Dec 2010)


One more reason why SoftBank shouldn't be allowed to buy T-Mo.... This is what competition looks like. Can you imagine what would be happening if AT&T had been allowed to acquire T-Mo?

posted on 03 Jan 2014, 22:15 11

5. PapaSmurf (Posts: 7641; Member since: 14 May 2012)


No unlimited data, higher prices, two year contracts and no uncarrier benefits.

posted on 04 Jan 2014, 00:41 2

20. Mxyzptlk (Posts: 3286; Member since: 21 Apr 2012)


One gsm carrier. Too much power and influence would be under att had that deal gone through.

posted on 04 Jan 2014, 01:25 1

24. Droid_X_Doug (Posts: 5578; Member since: 22 Dec 2010)


You forgot the part about Sprint customers would be migrating to either AT&T or VZW as their contracts concluded. And all cellular consumers would be f*cked.

posted on 04 Jan 2014, 13:27

49. downphoenix (Posts: 2285; Member since: 19 Jun 2010)


why would they do that? Sprint would have been in a bad spot had the deal gone through, sure, but people wouldnt just up and leave Sprint unless they were unsatisfied with their service. Some people dont give a crap about certain things like data speed or rural coverage, and rather have the slightly cheaper billing. And if the T-Mo deal went through, Sprint could have potentially gained hundreds of thousands or even millions of customers out of it, since I bet about half of T-Mobiles existing base would have decided to go to Verizon, Sprint, or some kind of Prepaid service instead of just staying on to transition to ATT.

posted on 04 Jan 2014, 14:09 2

53. TheRequiem (Posts: 140; Member since: 23 Mar 2012)


I disagree aggressively. Son's vision for SoftBank is much more influential and diverse then John's will ever be. SoftBank did to Asia years ago what T-Mobile is doing now. If SoftBank pursued a purchase of T-Mobile, it would be the single largest blow to both evil conglomerate's known as AT&T and Verizon, not only that, it would give former T-Mobile and Sprint the single largest Spectrum of LTE goodness in the world. T-Mo's AWS bands and Sprint's 800, 1900 and 2.5 LTE-A Would pretty much shatter anything AT&T and Verizon could come up with anytime soon.

posted on 04 Jan 2014, 14:42

54. downphoenix (Posts: 2285; Member since: 19 Jun 2010)


remains to be seen. And with the changes at Sprint so far since Softbank's got the reigns, I am not going to hold my breath on it. Just to give an example of the "softbank leadership" on their lately, ever since Softbank buyout, in August they axed the ability to swap phones with customer care over the phone, they have to go online or to a store now. Sprint care was open on christmas day. Stores were not. Online reps didnt staff. So christmas day, bunch of people swapping phones, and care had to escalate to a supervisor for them to do the swap, every time, if the cust was unable or unwilling to use the website service themselves

Just a sample of how the Softbank ran Sprint has been so far.

posted on 06 Jan 2014, 08:57

66. JerzeySniper (Posts: 21; Member since: 21 Mar 2011)


As a former employee of Sprint and constant phone flipper you do know that you can switch the imei of any phone through the automated system. Even better you can go online and do it.
The problem were facing today is what i call the "babying" of customers. Most customers like you get mad because we shut your phone off because YOU didnt pay YOUR bill or because YOU didnt READ YOUR bill......jeezus you have tech all over the place do some of the diligence yourself.

posted on 03 Jan 2014, 21:59

3. xtroid2k (Posts: 339; Member since: 11 Jan 2010)


Yeah, some people may bite. However I think most will stay with Tmo. I am very interested to see how the softbank deal goes.

posted on 03 Jan 2014, 22:05 10

4. Sniggly (Posts: 6759; Member since: 05 Dec 2009)


Legere is an asshole. He's crowing about money that AT&T was forced to hand over to him because the government didn't allow the buyout to happen. His network is not superior, as any rural customer can attest. Legere is all smoke and mirrors-great at turning phrases, but his company doesn't offer a superior experience in virtually any way except for cost.

posted on 03 Jan 2014, 22:17 6

6. PapaSmurf (Posts: 7641; Member since: 14 May 2012)


I live in Chicago (urban) and definitely have no complaints whatsoever. If I snag a job with T-Mobile (which I hope I do), then I'll be one happy camper.

posted on 04 Jan 2014, 01:24

23. elitewolverine (Posts: 1298; Member since: 28 Oct 2013)


Papa I work with Tmobile, great place. Though in tech care, I can firmly attest my hate for droid problems. The tools for BB are awesome, apple limited but easy. Windows simple and easy very few calls regarding them. Number of daily calls would be in least to greatest, win, bb, apple, droid.

posted on 04 Jan 2014, 10:46 2

43. Finalflash (Posts: 1534; Member since: 23 Jul 2013)


Huh...kind of like the market share of each of those OSes...what a coincidence.

posted on 04 Jan 2014, 13:35

50. downphoenix (Posts: 2285; Member since: 19 Jun 2010)


Sprint is pretty much the opposite. Most of the resources are geared towards Droid and they offer good support on that. The BB tools are atrocious but honestly those calls are quite few in numbers so they're bearable, but I'd feel sorry for anyone that works with business troubleshooting since they probably see BB a lot more often. Apple calls generally go over pretty well but we often have to use Apple.come resources to handle those calls. Windows, I cant even think of one time I had a WP8 related troubleshooting call, LOL.

posted on 03 Jan 2014, 22:24 2

7. Daftama (Posts: 563; Member since: 03 Nov 2012)


I couldn't agree more yeah brought change in the wireless industry... Doesn't change the fact he is an a hole or the face he talks down about every company speical Att and some how his network is superior LOL

posted on 03 Jan 2014, 22:53 4

13. xpr3ss10n (Posts: 55; Member since: 15 Dec 2011)


"Anything superior but cost"... lol. Seems to be pretty important. Enough for ATT to offer you a bogus gift card for all the money they will be raping you for. Tmobile is kicking ass and taking names. Ive outright paid for my Note 3 thanks to the savings of switching from verizonm someone is obviously stuck in a contract. ... dont worry though. Tmobile will probably solve that in a week for you

posted on 04 Jan 2014, 02:50 4

28. Sniggly (Posts: 6759; Member since: 05 Dec 2009)


I'm actually on a Verizon employee plan. Free phone and I pay less than I would for T-Mobile.

And lower costs don't mean anything if your display reads "no service."

posted on 04 Jan 2014, 11:46

45. Extradite (banned) (Posts: 316; Member since: 30 Dec 2013)


Do you work for them Sniggly...?

posted on 04 Jan 2014, 11:51

46. Sniggly (Posts: 6759; Member since: 05 Dec 2009)


I *worked* for Best Buy. I'm not currently in the cell phone industry.

posted on 05 Jan 2014, 00:05 1

58. Whateverman (Posts: 3187; Member since: 17 May 2009)


Left VZW a while back... Couldn't be happier. Yeah, there are 2 areas I've found that don't have a days signal, but even then I can still make and receive calls. T Mobile isn't the dead zone network it use to be. If you check out Open Signal, you'll see in T-Mobile is really getting the network together.

posted on 04 Jan 2014, 13:38

51. downphoenix (Posts: 2285; Member since: 19 Jun 2010)


I am looking forward to it, haha :)

Me and my wife are gonna debate on whether we wanna do the installlment plan on one of the great phones, or just go with something cheap like the Lumia 521 or Exhibit 4G until a particular phone strikes our fancy.

posted on 03 Jan 2014, 23:37 2

19. -box- (Posts: 3729; Member since: 04 Jan 2012)


The money was an agreed amount between T-Mobile and AT&T that the buyout would happen, essentially a bet by AT&T that it would go through. That it didn't meant that the previously agreed-to terms had to be followed, including the cash and spectrum.

As for the network, I've been a T-Mobile customer for almost a decade, using their network all around the middle of the country and as far east as D.C., and have only ever lost signal in the mountains of Pennsylvania and in rare valleys or underground areas. Granted I'm using Nokias all that time, but I've never had any significant or noticeable problem or difficulty with their network. I get LTE just about everywhere I go, the 4G HSPA+ is faster than my friends' phones from other carriers, and I can upgrade whenever I want, for example, I got a Lumia 925 on launch day, and whatever the new spring flagship Lumia is I'll be able to get if I decide too (hoping for a blend of the 1020 and 1520, that is, 5"-5.5" screen, 41-or-more MP PureView, possibly with the multi-lens system discussed in the article about 2014 camera tech this week, big battery, wireless charging, etc.

posted on 04 Jan 2014, 01:26 1

25. elitewolverine (Posts: 1298; Member since: 28 Oct 2013)


925 great device. And where we do not have coverage, we have free roaming. Data is roaming limited but not charged. So if your rural, wifi and roam. yay cheaper and still using others networks lol.

posted on 04 Jan 2014, 02:51 2

29. Sniggly (Posts: 6759; Member since: 05 Dec 2009)


Well, I've had T-Mobile too. And just so you know, places like "the mountains of Pennsylvania" are places where people, you know, live. Cities may hold much of the population, but they don't hold everyone, and it's important to have coverage in the rural areas too. The entire time I had T-Mobile the first time I was roaming on AT&T.

posted on 04 Jan 2014, 10:23

42. JerryTime (Posts: 468; Member since: 09 Nov 2013)


I live in VA and Southwest VA might as well not exist to T-Mobile. There is hardly any coverage at all, let alone LTE. I would love to switch, but as of right now I am sticking with Verizon. I have coverage pretty much EVERYWHERE I go, and I have LTE too not just cellphone service. There's nothing "superior" about T-Mobiles network when compared to Verizon. It's not even close. Their policies are great, and the dude likes to sell the dream, but that's all it is as of now, a dream.

posted on 04 Jan 2014, 12:42 1

47. phonetekmek (Posts: 70; Member since: 04 Oct 2013)


As a former DM and Regional trainer for T-Mobile I'll say they have improved their serive and speeds greatly ni the years since I left. But no way in hell would I go to their service. Sprint has a considerably larger voice network and in South Florida the Spark network is faster than anything else I've experienced on any of the other carriers. T-Mobile is a great option in a major metropolitan area but for anyone that travels, or lives in a rural area you should look elsewhere. And if i fell into that catagory I would port to ATT and take advantage of that offer quickly.

posted on 04 Jan 2014, 12:47 2

48. JerryTime (Posts: 468; Member since: 09 Nov 2013)


Haha Sprint over T-Mobile in FL?! Wow, please send me some of what you are smoking if you think Sprint is a better service provider than any major carrier.

posted on 03 Jan 2014, 22:25 1

8. Cha7520 (Posts: 209; Member since: 31 Oct 2010)


WWWOOOOOOWWWWW!!!!! I wish T-Mobile was good in my area.

posted on 03 Jan 2014, 23:32

17. corporateJP (Posts: 1548; Member since: 28 Nov 2009)


You and me both.

posted on 03 Jan 2014, 22:28

9. Daftama (Posts: 563; Member since: 03 Nov 2012)


What would be nice from this a hole unlimited plans for tablets

posted on 04 Jan 2014, 01:28

26. elitewolverine (Posts: 1298; Member since: 28 Oct 2013)


do you know how much data that would consume? There is a reason why cable companies charge you for lte speeds and 60+ a month for non moble in the home hardlined noded networks.

It would saturate the network so fast it would then be pointless to have a data plan at all.

posted on 03 Jan 2014, 22:45

10. Sauce (unregistered)


This guy gives me man boners

posted on 03 Jan 2014, 22:47 2

11. dorianb (Posts: 352; Member since: 24 Oct 2012)


Did he just tell Stephenson to shut his w#ore mouth?!

posted on 03 Jan 2014, 22:49 2

12. KFear (Posts: 137; Member since: 06 Feb 2012)


I'm not sure how long his attitude will appeal to customers. i'm already getting tired of it.

posted on 03 Jan 2014, 22:55 1

14. _KIRA_ (Posts: 19; Member since: 25 Dec 2013)


Legere is a man on a mission.

posted on 04 Jan 2014, 06:37 1

36. JunitoNH (Posts: 861; Member since: 15 Feb 2012)


Yes he is, to make money for his company, and hopefully improve network.

posted on 03 Jan 2014, 23:06 5

15. xtroid2k (Posts: 339; Member since: 11 Jan 2010)


I agree he is some what of an a$$ and have said this before; John is a marketing guru akin to that of Steve Jobs in he's really not selling you something better but convincing you that the crap he has is some real good s$%t.

No contracts - True
No ETF - True but you have to finish paying off your phone on your final bill which could be a lot like the cost of an ETF.
Coverage - we all know the truth about the network. Its not all there. Rural Areas are sxrewed
Unlimited Data - True
Jump - True, but cmon your average consumer will not take advantage of this. So most people will sucker into paying for a service they will never use.
World data - that's cool

So if I missed anything I'm sorry but personally I'm happy with Tmo but I don't think its superior as far as infrastructure.

posted on 03 Jan 2014, 23:34

18. corporateJP (Posts: 1548; Member since: 28 Nov 2009)


^About sums it up right, dead on.

posted on 04 Jan 2014, 00:46

21. ardent1 (Posts: 1991; Member since: 16 Apr 2011)


Do forget:

-- no strings attached to tablets with a free 200 MB per month for life
-- free mobile hotspot with cellphone, e.g. as much as 2.5 GB on the $70 a month plan

But you wouldn't think these were original or disruptive services.

These are real value to some people. I am on Verizon, and it cost $50 a month (good for 4 GB) to use the mobile hotspot feature on iPhone 5S.

Put it this way, if Verizon and ATT are matching Tmobile, then Tmobile is doing something right.

By the Steve Jobs is a genius besides being a master marketing guru. Steve Jobs has over 300 patents to his name. But that is besides the point.

posted on 04 Jan 2014, 02:53 1

30. Sniggly (Posts: 6759; Member since: 05 Dec 2009)


200 MB is worth about jack. I eat that up in a day.

Mobile share has free hotspot too.

posted on 05 Jan 2014, 00:17

59. ardent1 (Posts: 1991; Member since: 16 Apr 2011)


Mobile share is a complete rip-off.

I am not paying for overpriced line charges.

posted on 05 Jan 2014, 05:01

64. ardent1 (Posts: 1991; Member since: 16 Apr 2011)


Sniggly , it cost $15 a month for 250 MB on ATT for tablets.

It's NOT a question of how fast you can consume 200 MB, but rather a Tmobile is giving 200 MB free each month and could save about $180 a year vs ATT's fees.

posted on 04 Jan 2014, 04:00

31. Gemmol (Posts: 492; Member since: 09 Nov 2011)


ATT get free mobile hotspot, my boy was upset when he went to verizon from tmobile and had no more hotspot.....he should of went to AT&T

posted on 04 Jan 2014, 04:21 1

32. Sniggly (Posts: 6759; Member since: 05 Dec 2009)


Verizon also has free mobile hotspot on Share Everything.

posted on 05 Jan 2014, 00:35

62. ardent1 (Posts: 1991; Member since: 16 Apr 2011)


I can see myself paying $70 a month with TMobile. I can't see myself paying ATT's high monthly fee on contract.

The reason I went with Verizon was that I had $400 in my prepaid account and switched from prepaid to contract (after a fee) and am only paying $70 a month for 450 minutes and 2GB.

posted on 04 Jan 2014, 05:37

33. BattleBrat (Posts: 1048; Member since: 26 Oct 2011)


On an Android phone, USE Fox Fi!!! I have unlimited on Verizon and Tmo and using Fox Fi doesn't count as being tethered (even though you are) 69gb on Verizon last month

posted on 04 Jan 2014, 01:42 2

27. elitewolverine (Posts: 1298; Member since: 28 Oct 2013)


Jump, will not use? Hmm I bet you have little on how jump works.

Lets say you buy a HTC One, you get the update and your phone is just acting crappy, actually its a real issue right now I deal with every day. You were not real happy with the phone to begin with but you stuck it out.

You have waited the 6month initial period to use jump (no limits after that but twice a year). You have had your phone replaced under the warranty for issues that a master reset did not fix (I do this daily for multiple devices)

In total you have paid $150 for a 600 dollar phone. I use my jump. Tmobile wipes out 450$ remaining and now you can pick another device. No upgrade worries, no extra expense. etc.

Now cost savings? Lots. I can choose complete unlimited on my device no throttling, 2.5gb of hotspot, jump, eip (for payment of phone monthly), and still be $5 less than Verizon.

With Verizon I would pay $50 for the phone, get locked into 2yrs, not have unlimited data. Data is shared on all my phones, where tmobile is phone specific. No jump have to wait for upgrades. And you are paying more for less. Other than coverage.

ETF is because you haven't bought the phone. Pay if off and your free to go. That is like leasing a car and getting mad you cant keep the car after breaking your lease 6months in and paying 1800 for a 30k car. Get real.

posted on 03 Jan 2014, 23:27 1

16. MartyK (Posts: 692; Member since: 11 Apr 2012)


This dude is the Best CEO on the planet.. Sprint buy T-Mobile and put him in charge!

posted on 04 Jan 2014, 00:59 2

22. Derekjeter (Posts: 194; Member since: 27 Oct 2011)


This guy talks s**t about ATT, about how they are just trying to buy customers but isn't that what hes doing as well? Like i said before i don't think he should talk like Tmobile has better coverage than ATT. He uses the same tactics to buy customers because the network is sh!t. I know everyone will get upset and defend Tmo but lets be honest if they really had good coverage they would not be 4th.

posted on 04 Jan 2014, 07:32

38. darkkjedii (Posts: 10282; Member since: 05 Feb 2011)


Boom goes the dynamite lol. Well said DJ.

posted on 05 Jan 2014, 00:18

60. Whateverman (Posts: 3187; Member since: 17 May 2009)


The way they keep adding new customers and Sprint keeps losing, they might not be in 4th for much longer. Who knows.

posted on 04 Jan 2014, 06:27

34. mike2959 (Posts: 208; Member since: 08 Oct 2011)


It's really about 3 things, coverage, speed, price. I say price last because the CONSUMER has CHOSEN AT&T and Verizon FIRST. I would love to go back to TMO... But I need coverage in the suburbs, and other area's.

posted on 04 Jan 2014, 06:32 5

35. JerzeySniper (Posts: 21; Member since: 21 Mar 2011)


This guy is awesome. And im a VZW employee. For starters if youre saying hes an asshole then you must not have been paying attention too the other CEOs and how they work with there high and mighty turned up nose "how dare thou approach or speaketh to me" attitude. Hes reinventing the CEO..hes coming to the level of the customer and listening to them. And if he fails.....so what hes trying something new...would you rather things remain the same...?

And btw if service works for you on tmobile where you live and travel then who gives a flaming crap about it not picking up where you will never go...if its working for you thats all that matters.

posted on 04 Jan 2014, 07:31

37. darkkjedii (Posts: 10282; Member since: 05 Feb 2011)


Man it sounds like these two need to head out to Vegas, lace up the gloves. PPV anyone?

posted on 04 Jan 2014, 07:35

39. darkkjedii (Posts: 10282; Member since: 05 Feb 2011)


In Las Vegas I've never had good luck with tmo, would be willing to give them another try tho.

posted on 04 Jan 2014, 09:39

40. papss (unregistered)


Tmob should be working on their coverage instead of shredding anyone.

posted on 04 Jan 2014, 09:56

41. papss (unregistered)


Also want to add that I won't pay less for worse coverage. As a consumer tmob has zero appeal no matter what the give you free or discounted with their super spotty lte coverage

posted on 04 Jan 2014, 11:32

44. imeubeu (Posts: 59; Member since: 01 Jul 2012)


randall stephenson should've waited after the 8th...an one up them

posted on 04 Jan 2014, 13:58 1

52. guyver192 (Posts: 14; Member since: 27 Feb 2012)


As a former AT&T subscriber I have a few points I would like to mention. I am on T-Mobile right now.
1. With 2 identical phones at MY house T-Mobile better signal sitting side by side 1 bat at&t, t-mobile full bar's. LG G Pro Both unlocked. Switched sims and retested same result for me low service with att.
2. The LTE network is building out and every month now 4g service expanding further out. I have a 32 min drive to work. LTE speed are really good.
3. NOT serviced everywhere like at&t and Verizon. But remember they also had and still have there bad area's. Until about 2007-08 At&t my area was edge and roaming was the normal. Give T-Mobile time. if they are moving they way the are now. I give them 2-4 years and may be on the level of At&t on coverage. they are trying to buy that 700 MHz block from Verizon
4. I am not bashing other carriers. My wife has Verizon and it works at the house. All the new rage is LTE but AT&T and T-mobile gsm 3g/4g is pretty speedy also. Spotty yeah but works.
Also my results and testing are by no mean an exact science but works for me.

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