Rumored T-Mobile change will be a double-edged sword for customers
New devices can be expensive, which is why many people finance their purchases through carriers. The downside to that is that customers can't leave their telecom company before paying off their device. For T-Mobile users, the installment plans are usually spread over 24 months but the company may extend the duration in the future. T-Mobile 's 24-month installments are known as "Equipment Installment Plans" or EIPs. AT&T and Verizon both switched to 36-month installment plans around four years back and now, T-Mobile is gearing up to follow suit.
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 for 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 less enticing for customers to pay off their devices early and relieve themselves of the obligation to stick with the company for a long time. 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 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 against its statement about giving customers the freedom to upgrade to a new device every two years. Switch to Total 5G+ Unlimited 3-Month plan or Total 5G Unlimited and get a free iPhone.
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