LAS VEGAS (AP) — In a story Jan. 8 about T-Mobile, The Associated Press reported erroneously that the company will pay up to $300 per line for people who switch from other companies. The correct figure is $350.
A corrected version of the story is below:
T-Mobile to pay customers leaving rivals
T-Mobile aims to lure new customers by paying their termination fees, reports subscriber gains
By PETER SVENSSON
AP Technology Writer
LAS VEGAS (AP) — T-Mobile US Inc., the country's fourth-largest wireless carrier, is aiming to lure subscribers from rivals by paying the fees required to break their service contracts.
Wednesday's announcement, at the International CES gadget show in Las Vegas, is the next step in T-Mobile's campaign to bolster its fortunes by shaking up conventions in the wireless industry. The strategy appears to be working: T-Mobile reported solid subscriber gains for the last three months of 2013. It started gaining subscribers last year after several years of losses to larger carriers AT&T Inc. and Verizon Wireless.
T-Mobile CEO John Legere said the company will pay early termination fees of up to $350 per line for people who switch from other companies.
"It's part of the overall industry scam," Legere said of early termination fees. "What we are going to do is force the industry to change."
T-Mobile eliminated early termination fees and service contracts last year. Instead, customers buy phones on installment plans and pay month to month for service. If they want to cancel service, they have to pay off the balance on their phones.