T-Mobile will pay customers's ETF (Early Terminiation Fee) when switching services from AT&T, Verizon or Sprint. There are a couple of catches to this promotion however. You must first trade in all of your devices that are tied to your contract. Additionally, you can't bring your own phone and use a cheap T-Mobile plan, you must pick a device directly from T-Mobile and sign up for new service.
The rumored promotion will be eligible to those on family plans on other carriers as well, up to 5 lines.
The battle between T-Mobile and other carriers, especially AT&T has intensified in recent months. AT&T even offered customers up to $450 in service credit when they switched and traded in their qualifying device.
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Update: The promotion has officially been announced by T-Mobile
In its latest move, T-Mobile is eliminating one of the last remaining obstacles for individuals and families wanting to switch from AT&T, Sprint or Verizon to the Un-carrier by offering to pay off their early termination fees. With an eligible phone trade-in, the total value of the offer to switch to T-Mobile could be as high as $650 per line.
"We're giving families a 'Get Out of Jail Free Card,' said John Legere, president and chief executive officer of T-Mobile. "Carriers have counted on staggered contract end dates and hefty early termination fees to keep people bound to them forever. But now families can switch to T-Mobile without paying a single red cent to leave them behind."
Starting tomorrow, customers from the three major national carriers who hand in their eligible devices at any participating T-Mobile location and switch to a postpaid Simple Choice Plan can receive an instant credit, based on the value of their phone, of up to $300. They then purchase any eligible device, including T-Mobile's most popular smartphones, now priced at $0 down (plus 24 monthly device payments, for well-qualified customers). After customers get the final bill from their old carrier (showing their early termination fees), they either mail it to T-Mobile or upload it to www.switch2tmobile.com. T-Mobile then sends an additional payment equal to those fees, up to $350 per line. Trade-in of their old phone, purchase of a new T-Mobile phone and porting of their phone number to T-Mobile are required to qualify.
via Droid Life