Rumored T-Mobile change will be a double-edged sword for customers
Apparently, T-Mobile briefly increased the duration of the installment plan for some Samsung Galaxy watches before reverting the change.
T-Mobile was briefly offering longer installment plans. | Image Credit – The Mobile Report
Per The Mobile Report, that wasn’t a glitch. According to a leaked internal document, T-Mobile is contemplating introducing 36-month EIPs for at least some devices.
The longer installment plans may only be for select plans. The new policy may violate the “New in Two” guarantee that some plans offer to make it easy for customers to upgrade every two years.
For now, it looks like the change has been delayed. However, given that it went live for a while, we might see it implemented soon.
Revising installment plans to stretch over 36 months instead of 24 would allow T-Mobile to retain customers longer, thereby reducing churn, which is an industry-wide concern. For customers, this would mean being beholden to the company for a year longer.
A policy introduced last year already made it harder for customers to pay off their devices early and free themselves from long-term commitment to the company.
That said, longer installment terms may not necessarily be viewed as an anti-customer move, as payments will be spread over a longer period. For customers not thinking about leaving in the near future, this would mean smaller payments every month.
Besides, an average American keeps their smartphone for more than 2.5 months, so a 36-month installment plan might be a better idea.
Either way, T-Mobile will once again have to eat its words and go back on its statement about giving customers the freedom to upgrade to a new device every two years.
