T-Mobile discontinuing employer rate plan discounts

T-Mobile discontinuing employer rate plan discounts
Beginning next Tuesday, T-Mobile will no longer extend discounts to employees of companies that have business agreements with the carrier. 

These discounts are offered to employees of these companies as an added benefit to the corporate agreements and it is a common practice across all the major carriers, until now.

In lieu of the service discount, T-Mobile will offer a $25 reward card each time an eligible employee of one of the T-Mobile business customers purchases a new phone. Per T-Mobile CEO John Legere, “It’s simple, clear and transparent – like everything we do.” He points out that for a family of four, it could save them $100 if they decide to get new devices for everyone.

The reasoning behind the change is that the old discount scheme is designed to help the big carriers “close big corporate contracts, with employees as bargaining chips.” The outspoken CEO added, “We aren’t playing that game anymore.” There was no mention about whether T-Mobile was going to change whatever discount schedule it has for new business agreements going forward.

While it is a safe bet that even with the discounts, some of the bigger carrier plans cannot compete price-wise with T-Mobile plans, a lot of the business agreements with the larger carriers also include pretty significant accessory discounts, some as high as 50%. Even the service discounts with the other carriers vary widely, from under 10% up to 30%, possibly more.

The other thing is that under the old discount plans, even a recurring discount as little as 8% or 10% off T-Mobile's $50 Simple Choice plan is worth nearly double the value of the gift card when aggregated over the course of a year.

T-Mobile’s new approach is indeed a lot simpler, and it fits the “un-carrier” motif. T-Mobile has introduced a number of enhancements to its rate schedule, including free international roaming to over 100 different countries and certainly enhances the value of Team Magenta’s plans. Value, however, remains in the eye of the beholder. It will be interesting to see how this particular change will be received.

As we are accustomed to hearing and reading, John Legere assures us, “And, we’re not done yet. Stay tuned.”

source: T-Mobile

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27 Comments

1. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Well both my employers don't offer a discount for T-Mobile. What I do want is the employee plan. Those savings are BEAUTIFUL.

2. Augustine

Posts: 1043; Member since: Sep 28, 2013

My employer does get a discount with T-mobile, but, since I have a prepaid plan, it does not apply. Regardless of my being unaffected by this move, it makes sense to me.

3. Salazzi

Posts: 537; Member since: Feb 17, 2014

Though I understand the reasoning behind it, I think there could've been another approach. Why not take these away BUT give everyone equally at least $5 off per line per month. I'd take that any day over the measly $25, which when you look at it, 12 months= $60 off a new phone vs $25.

5. 14545

Posts: 1835; Member since: Nov 22, 2011

That's kind of how I was thinking about it. I get they are generally cheaper than their counterparts, but this will ensure they don't have a bargaining chip to pull in corporate clients. Which means they will have a hard time building out the network to more rural areas. This directly affects many people, like myself, that would like to join their network. We can't join because they don't have service in areas we visit regularly. I'm not saying they need VZW levels of "coverage", but it wouldn't be hard to go after ATT.

6. Salazzi

Posts: 537; Member since: Feb 17, 2014

Exactly, it would be more fair of a proposition I believe. I'm also in your boat, as my home is smack in the middle of a blackout area.. my stretch of the road doesn't even get 2G.. literally get no service. Essentially I can't call or text at home. A great feature they do have, and I'm not sure if you know about this or not, but it's called "wi-fi calling". Essentially you connect to your home wifi and you can make calls and texts with absolutely no problem. The only issue, and this is one I'm facing, is that if you don't have a non-branded T-mobile phone, then you don't get wifi calling. This means phones like iPhone or the Nexus phone by google. Otherwise, the phones you buy from them will almost always have wi-fi calling baked in. I have an iPhone, so with no signal and no wifi calling, I'm stuck without service.

7. 14545

Posts: 1835; Member since: Nov 22, 2011

Thanks for the heads up. I didn't know that. However, where my family lives Tmo doesn't offer service. Also, some of the members of my family don't have wifi, including my mother, so that is not really much of a help when traveling out in that area. If they did at that area, and more coverage in between, I wouldn't even hesitate dropping my horrid VZW service. I've been fed up with them for 2 years now. But they are the only carrier that gives me the coverage I need. So I stay for that reason alone.

18. trentsinmypants

Posts: 324; Member since: Jan 29, 2009

I love it how people who do not work within the industry have so much insight on how B2B works. Corp accounts have access to discounts that the retail side cant offer. Believe me, TMo will still have deals to offer big companies if they choose to sign up.....

4. MartyK

Posts: 1043; Member since: Apr 11, 2012

Humm, Sprint Spark is looking good right about now in the KC area...

8. k1ng617

Posts: 270; Member since: Oct 13, 2009

Will I lose my discount if I am already getting it now? That's worth about $100 a year to me.

9. k1ng617

Posts: 270; Member since: Oct 13, 2009

Did a quick search and found out I WILL lose my discount starting in April... Anyone think I have any recourse? I still owe about $100 on my Note 2 and the extra monthly difference makes it enticingly close to a Verizon plan since I get an 18% discount through my company.

14. Gemmol

Posts: 793; Member since: Nov 09, 2011

Time to switch then

20. trentsinmypants

Posts: 324; Member since: Jan 29, 2009

Have you see how much your Corp discount gives you right now? Are you really going to complain about a $6-8 increase on your bill?

22. javac

Posts: 102; Member since: Mar 04, 2013

I am going to throw this out there but in the course of a year that totals up to $72 - 96. That is something i would complain about.

23. javac

Posts: 102; Member since: Mar 04, 2013

and at 50 bucks a month that is also $9 ($108). So its a little more than you are making it out to be.

24. trentsinmypants

Posts: 324; Member since: Jan 29, 2009

Seriously? $72-96 (or $108)? Perhaps you should go to Boost Mobile then.....T-Mobile is still cheaper in the long run when compared to Big Red or AT&T.

26. downphoenix

Posts: 3165; Member since: Jun 19, 2010

If you're out of contract, they have no obligation to continue offering the discount. If you're in contract, this has to qualify you for an ETF waiver. Otherwise I'd reach out to the BBB and get them involved.

10. egbtmagus

Posts: 93; Member since: Apr 12, 2012

The reason for this is because T-Mobile employees are idiots who put discounts on peoples accounts even if they didn't work for a company that received discounts. They claimed that you got a discount if you were a member of lifetime fitness or had a cubs (supermarket) membership. They abused it to close sales and now its costing everyone...

11. sniper1087

Posts: 537; Member since: Dec 31, 2011

you are making an assumption there buddy, employees lose on commission by the discount the customer gets, which is why most if not all don't do it.

27. downphoenix

Posts: 3165; Member since: Jun 19, 2010

no, he's pretty much right. Sprint was sorta the same way, Sprint still offers the discounts, but the impact of the discounts are reduced significantly due to the way they work on the new plans, and also there is a more strict verification process the customer has to participate in to receive the discount, the stores cant just add it like they used to. Before, it was not uncommon to see a customer account with a 25% discount or so. Im sure the other carriers had similar discounting issues, but they are wising up to this since this hurts their bottom line.

12. bigdawg23

Posts: 467; Member since: May 25, 2011

My company has discounts with VZW, AT&T and Sprint and also company plans with them. T-Mobile isn't among them because of their poor coverage.

25. trentsinmypants

Posts: 324; Member since: Jan 29, 2009

Poor coverage? Have you used T-Mobile within the past year? I get better service on my T-Mo phone than I do on my VZW iPhone.....faster LTE (I ping'd 32mpbs on T-Mo while getting 11mbs on VZW) I NEVER drop a call on T-Mo, and my

13. -box-

Posts: 3991; Member since: Jan 04, 2012

I hope existing discounts stay, and only new discount applications fall under the change. Also, when is this supposed to go into effect?

19. trentsinmypants

Posts: 324; Member since: Jan 29, 2009

Goes into effect April 1st (no joke)

15. Numz

Posts: 34; Member since: Oct 31, 2009

Well this sucks. Now I'm only saving about $7 a month since I switched from Verizon where I had unlimited data with FAR better service. This is the first bad move tmo has made since I left Verizon. Plus I buy my phones from Google play so the $25 gift card doesn't apply to me. Sprint is starting to look a little better. They have spark in SLC so it might be worth a look.

16. medwar07

Posts: 44; Member since: Oct 18, 2011

Seems like Tmobile did the bait and switch, they lure you in with low prices and slowly, the price is starting to climb.

21. trentsinmypants

Posts: 324; Member since: Jan 29, 2009

If its such a bait and switch then bounce, you're not bound to a contract......

17. MelvinPainter

Posts: 75; Member since: Apr 05, 2012

T-Mobile just should have said we are increasing our plans for a good number of our customers.

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