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T-Mobile Brings End to Employer Rate Plan Discounts, Opts for Transparency Instead

T-Mobile’s CEO John Legere made an announcement at the end of last week that his company would be ending employer rate plan discounts, opting for a more “transparent” game plan.

“The old programs were designed to help big carriers close big corporate contracts, with employees as bargaining chips.  We aren’t playing that game anymore,” was what John had to say about the current setup of employee discounts. 

The end of discounted rate plans will begin tomorrow, April 1. Starting then and going forward, customers with a qualifying account will receive a T-Mobile reward card of $25 each time they purchases a new device through the carrier. According to T-Mobile, this method is simple, clear and transparent.

John closed the message with a hopeful look to the future, as the Uncarrier has even more plans at simplifying wireless for everyone. “A year ago, I promised we’d change this industry, and this is just one more step in the movement.  And, we’re not done yet.  Stay tuned.”

Are you affected by this change? If so, let us know your thoughts on the new “deal” below in the comments section.

Via: T-Mobile
  • kelly1519

    T-Mobile’s churn
    rate declined sharply to 1.9% by the end of 2013, which is an obvious
    indication of growing customer loyalty after it introduced consumer friendly
    packages, here are the details http://bit.ly/1hlKYtB

  • ki11ak3nn

    My employee discount with T-Mobile was only 15%. So I’m not really missing it. I miss my 25% discount with Verizon, but still even with the discount T-Mobile is cheaper with better service. So I’ll stick with you for now T-Mobile. Hopefully I’ll hear news of you getting the Sony Z2. Gotta use my JUMP pretty soon.

  • Stone Cold

    This could end up as being the ending to the old way but about to possible offer a new batch of Corporate perks. Only time will tell.

  • Aaron C

    Yeah, I tried to activate my AAA discount, and T-Mobile sent me through hoops and wouldn’t do it. Eventually I went to AAA with it, and they said, “the program is ending in April anyway.” Oh well.

  • David Henry

    Is it just me or does this source of information seem off?

    Not going to believe it until it is a blog or announcement from the t-mobile.com domain…

  • Telfon

    Yup, I just called and asked. Best Buy got dropped from the list. and now my cheaper 17 dollar a month Nexus 5 payments are now more favorable than eventually Jumping to a Galaxy S5 or G3 or Note 4 in the future… Sigh

  • davidtb

    “A year ago, I promised we’d change this industry, and this is just one
    more step in the movement. And, we’re not done yet. Stay tuned.”
    How long is this gonna take?

  • yankeesusa

    Well, even after losing my 12% discount its still cheaper than att 2 line $130 10gb plan. But not by much. If att keeps their discount I get about $10 off which makes it 120 before taxes. After taxes with tmobile I pay 102 currently- it will probably jump to 112 now. So its still ok. Especially with most of their 2g cell towers switching over to lte by end of year I will give them a chance i guess

  • Brian Menius

    This is most helpful to those of us who circumvent the carrier and buy phones from Google Play.

    This may be enough to put AIO/ Cricket into favor, really.

    • Justtyn Hutcheson

      Actually, they aren’t a bad deal. 8 Mbps is fine for just about anything honestly, and it’s only $60 for 5GB at that speed. If you want more fast data in a month, it’s $10 / GB; not good, but better than “sorry, you hit your limit”. Heck, if you can live with 2GB and sign up for their auto pay system it’s $45 /mo, which is a real steal.

  • sagisarius

    Ugh, I just switched to Tmobile with that discount pretty heavily factored in. Grumble.

  • AngryBadger

    Hmm, wonder if I could complain and at the very least get the 25 dollar credit for my phone, tablet purchase (been about 2 months). Gotta call TMO. so shady that it takes two months to verify rate and all of a sudden, they cut this discount. worst timing ever for me (next billing cycle was discount). only .gov remains/curated list of employers?

  • Clancy3434

    Wow I literally just switched to T Mobile a week ago largely because I would get an employee discount… This… This blows.

  • smolix

    Oh well, in this case I’ll be gone in no time. Just switched since they were competitive with a FAN account.

  • chris125

    Well that’s what happens when you spend all that money buying customers. Have to cut spending in other areas

  • hoodieNation

    Man T-Mobile is annoying.

  • Michael Parsons

    Well, my bill for my rate plan just went up 12%. FML

  • kakid

    Well, that blows! I just got my corporate discount set up after switching from ATT to Tmobile. With all the lines on my account, that knocks off about $35 from my monthly bill. Does that mean I get to pay more? We were with ATT for 20 years, going back to when it was Bell South. Somehow I’m not sure I made a wise decision in making the change. Live and learn, I guess.

  • I love T-Mobile in the beginning of “Un-carrier”, but in the past month or two they have increased the cost of unlimited data to $80/mo (around $100 a month when financing a device), and now have no discounts. Unlimited data is the only thing they have going for themselves, if they ever get rid of that why would anyone chose them over AT&T?

    • Aaron C

      No contracts? Faster speed (at least here in the Northeast)? Less butt pain?

      • If you’re in the northeast (I’m in NH), then you’d have to be crazy to be with T-Mobile. At least AT&T has almost all of NH, MA, and a good portion of VT and ME covered in LTE. T-Mobile has GPRS, if any coverage at all.

  • Not April Fools, if it is they are risking a lot. Just posted this on their Facebook this is their reply:
    Chase: Is it true you are doing away with Employee/Corporate discounts? If so my bill just went up and that makes me Un-Happy.

    T-Mobile: Hi,
    Chase. We are changing our corporate discount program from a discount
    on the rate plan to a discount on the phone. This shift reflects the
    additional value we’ve already packed into Simple Choice over the last
    year. For more info visit: http://goo.gl/0zoflO –Sondra

  • Ronald Bernard

    Does this affect military discounts?

    • Turb0wned


  • rye

    April Fools!

  • cweb69

    Yeah, not cool to mess with existing discounts. Not happy with this change. I will never buy phones from the carrier again, so I’ll never get a “gift card”.

  • jay

    April fools guys…

    • Matt Isaacs

      A day early? I think this one is real. I hope you are right though

      • jay

        Effective date is April 1

  • Colby Edwards

    Yes, I’m sure T-Mobile thinks this is a great thing for everyone. That’s why they game their customers a whole ONE DAY notice.

  • Droid Ronin

    I was riding on the 15% corporate discount for the last 3 years. It was good while it lasted. Oh well.

  • Andrew

    Not happy about this one bit. My corporate discount basically equals all the BS taxes and fees that T-Mobile adds to my bill every month. If T-Mobile wants to get rid of my discount, then they need to get rid of the other crap too!

  • coolsilver

    23% on Verizon. They pull that junk I’ll have to seriously learn to deal with 2G at home on T-Mobile. Their price is same as Verizon with my discount. Would be no heartbreak on my wallet just on coverage and service. Though I would had a 15% discount with T-Mo. All other carriers dropped their discounts for me.

  • PyroHoltz

    Not excited at all.

    Emailed my corporate contact to see how they’re handling the termination of these discounts.

  • MH

    Fewer gimmicks, moAr LTE

  • MistaButters

    My 21% corporate discount is one of the main reasons I have’t left AT&T. That + “Unlimited” data

  • So my plan just went up 10%? Sigh another backwards step for T-Mobile.

  • Billy O’Brien

    #recarrier anyone?

  • bigjohn

    massive fail, T-mo. but, you probably don’t have any corporate customers on your crappy little network anyway…

  • androidformetoo

    This sucks!! I JUST changed over to T-Mobile and haven’t even had a full month of service yet. I couldn’t afford to get smartphones on 5 lines with Verizon and my 20% discount off only the primary line…and didn’t want to give up unlimited on my first two lines. So, moved to T-Mobile, spent $1,500 on new phones to get unlimited and 15% off each line and now the big SCREWball. At least with Verizon, the network was awesome and I knew in advance that I was going to get screwed.

    • Justin W

      Plus side is you aren’t on contract, so you can leave if you want.

      • bkosh84

        Not if he signed up for the EIP to purchase his phones.

        • Turb0wned

          He can still leave just keep playing the phone…

          • phenom

            That’s not correct. If you terminate service the remaining balance on the equipment becomes due. This is why the no-contract thing is really no different than an ETF at other carriers.. it’s all smoke and mirrors.

          • Justtyn Hutcheson

            For the first ~17 months (for a $650 phone), it’s actually *worse* than a traditional ETF.

            Smoke and mirrors, indeed.

  • VBM

    So, no more military discount?

    • Fresh360

      Military and Govt employees are exempt.

  • Danny Alvarez

    Don’t worry everyone! It’s just an April Fools prank! ….right? Please?

  • Top Gear

    Ah I guess this explains the reason why I was having trouble signing up for my company’s corporate discount. Employees were only given the flyer about it at the end of february. I was super excited at the time calling Tmo CS to help me figure it out but to no avail. This sucks considering I don’t buy new devices that often but I guess I can live without it considering I’ve been on Tmobile for many many years now without this discount. A few extra bucks in the bank every month would’ve been nice though haha.

  • Matt Isaacs

    I called Tmobile and they verified I will not be losing my discount, she told me there is a list of companies that will remain in the program and mine was on that list. She also said if you havent gotten an email or letter in the mail then you are most likely unaffected and will retain your discount. Hope that helps

    • James_75

      So much for transparency….

    • kevlar

      The rep was wrong then. Unless you have a .edu or .gov email address, you will be losing it. Source: My friend works at corp tmobile and informed me that all will be losing but those 2. They do not have a verification process setup, but for .edu and .gov, they do. Its why I switched back to Verizon since I was losing my 15% discount. Plus I get 22% off at VZW and now my bill is cheaper again.

      • Matt Isaacs

        I hope she wouldn’t just lie to me, but if that is true I’m heading to AIO. AIO is my next stop if they take mine away.

        • kevlar

          She may not have lied to you, just not well informed. T-Mobile’s CEO has already said this is happening.

          • Matt Isaacs

            Seems like a lie, she was acting like she was accessing a document with an list of companies and confirmed my company was on the list. She said I was 100% safe. I can only wait and see, but one of the nice features of Tmobile is no contracts so I can always vote with my wallet.

        • ilovetechnology

          AIO’s price includes all taxes and fees and was already cheaper than T-Mobile WITH a 15% discount. Now it’s a no brainer!

      • capecodcarl

        So federal government employees still get the discount? I guess I’ll put my pitchfork down. Now if they would just apply the damned discount, I applied for it a couple months ago. 🙁

    • t3lancer2007

      Hopefully that applies to State Government employees as well, or I’ll be pissed.

    • TmoRep

      You are correct some companies will retain the discount others while will receive the $25 gift card on device purchase both new and upgrade. This will no longer be handled in store or with care. There will be a website you deal with. GSA will not change (govt, military, etc). Your email domain has nothing to do with it so you can forget that. Most college discounts were discontinued years ago. This isn’t flipping a switch over night. You Will Receive a notice. You discount will continue through your current billing cycle and will wrap up. This isn’t a joke we trained on this. It has nothing to do with paying ETF fees. Long story short the system was abused by far too many people both employees and customers. They now have a way to better verify eligibility. T-Mobile already offers a competitive product with out discounts. They did not raise prices. If you have a $20 unlimited LTE feature you will keep it. The additional data tiers only apply to new customers. Tax and fees are not something T-Mobile just makes up and adds to your bill many of them are FCC mandated. The only thing that may be considered additional is the regulatory programs fee of 1.61 and that is used to cover costs of programs that the federal government mandates tmo participate in. If this bothers you contact your political representative. If you are losing your discount you may wish to speak to your advantage rep they handle all of this and can provide you with more details of what your corporate perks will be.

  • James Piworski

    Sounds like it’s the corporate lines that don’t get the discount not if you work for a big company or government. I just applied for it .

  • Jon_T

    The ONLY reason I likes/stayed with my carrier was because of the discounts I was getting from work.

  • MvP77

    Don’t like the move, but still a better deal than I got with att with my employer discount. Especially considering I somehow used 11gb last month.

  • Craig

    The Verizon employee discount is a joke now. For me it’s 20% off the first line and it doesn’t include data. I get a big $8 saving on a three line plan. It use to be that corporate discounts were much better. A few years back I was on an AT&T corporate FAN account where I received 25% off the entire bill, 50% off equipment, and the ability to upgrade phones anytime at the discounted price. Those were the good ole days 🙂

    • PoisonApple31

      So you must have a legacy account? The share everything plans take the discount off the data only – i got a bigger discount off the unlimited plan.

      • Craig

        My Verizon account is 18+ years old and all my plans are no longer offered. When VZW changed to the Share Everything plans they really screwed their customers. The new plans are very expensive with data overages at $15gb and crazy line prices.

        • Artune

          I have a single line VZW account with 450 min unlimited text and unlimited data. with my discount I get 21% off the plan as well as off the data so I don’t know why you don’t get discount off data. Call up verizon and i’m sure they will see they missed something. That happened to me years ago. Not discounting the data and when they saw it they discounted the past months that missed it via a credit. (10 yr user)

          • Brock Johnson

            The discount on data is no longer an option they were supposed to take that away. You are one of few left that fell thru the cracks of data being discounted

          • Craig

            I tend to agree with Brock as I use to receive the discount on data then on one statement it disappeared. That was about 2 years ago. I don’t really care about the discount any longer. I want to see VZW lower their rates especially for data.

          • PoisonApple31

            I’d rather see them lower the line access fee – there is no way to avoid this insane price. If I needed more data I would just switch plans in the middle of the month to fight those overages. 8GB to 10GB is only a $10 different versus the stupid $15/GB overage.

  • Croq

    I am currently getting $12 a month discount on 2 lines or $144 off per year. The most I can hope for now is $100 a year if both me and my wife upgrade twice a year (which is unlikely). Thanks for that.

  • JiGSaW525

    April fools joke?

    • Croq

      Would be nice if that were the case…

  • Jpx

    Welp there goes my 15% discount out the window. Cant say I didnt see this happening since the lost money while gaining customers. Still sucks though

  • Chris

    April fools?

  • Turb0wned

    Don’t worry guys, they are giving you a $25 gift card!!!

  • unashamedgeek

    For me, Tmobile without a discount was still cheaper than the discount I could get on Sprint, Verizon, or AT&T. On another note, my wife’s corporate discount through Verizon lost 3% a month or two ago.

  • John Legend

    I’m affected by this change and not happy about it one bit.

    • Croq

      Same here. Up until now, it’s been all about paying less. Now I need to pay more?

      • michael arazan

        You are paying less, you get $25 off a Brand new phone now in return

        • Croq

          Between this and the recent changes to the Jump program, yes, I will be paying more. Under my employee discount, I was getting a $12 a month credit (or $144 a year) on two lines, and we could previously “jump” twice a year with no more out of pocket other than any down payment (though most of the phones seem to be zero-down now).

          Under this new plan, if we don’t participate in the Jump program, then we wind up paying $144 more per year now than before.

          If we both “jump” once a year, then we get $50 under the new “discount”, meaning we wind up paying $94 than we are paying now.

          If we both “jump” twice a year, we would get $100 in credits, but because of the recent changes in the Jump program, we would have to pay money to get us to the required 50% of the phone balance paid off before you can “jump”. Given that many of the phones are $600+, that’s an additional $150+ each time you “jump” if you do it twice a year. More if you do it more often. So on a $600 phone, jumping twice a year, we get $100 in credits, but pay $600 in costs between the two of us to get the phones paid off to 50%, so a net of paying $500 more, plus the $144 credits I don’t get any more.

          So, I may be dim, but it sure seems to me that I’m going to be paying more.

    • dontneedtoknow

      I have a feeling that if we take it to twitter, he will probably do something about it! I was looking forward to switch to Tmobile but looks like I won’t be anymore.

  • Mikey Styles

    Let’s just hope it doesn’t get worse. I mean this isn’t good but lets not tempt karma Lol

  • Turb0wned

    A company with iffy service should NOT be doing something like this.

    • Cowboydroid

      They’re doing it because they probably don’t have many people on employer discounts anyway. The other big three are known more for employer discounts. T-Mobile is not.

      Regardless, I’m still paying less on T-Mobile without an employer discount than I was on Verizon with an employer discount.

      • Aaron C

        Yes, I was told there aren’t many people on the corporate discounts, FWIW. It’s not like Verizon and AT&T. And yeah, I’m still paying less too. Still very happy.

  • kyle

    This is smart.. why should everyone else have to pay more so you can get a corporate discount because you work for a company that’s 2000+ employees? Way more people will benefit from this than not

    • BobbyG

      how will anyone benefit from paying more?

      • kyle

        Because if tmo stops giving these big corporate discounts then they can make the service cheap for everyone across the board or give us more data.. isnt that what drove this anyways? You’re already getting more data as a result of this.. this actually does matter to me because my fiance was going over her 500mb limit every month.. the last week of the month there’s been a lot of groaning about slow speeds! Not anymore! Thank you tmo – agreed with dude below.. less gimmicks moar LTE.. after all that E goes LTE.. could care less that corporate uses aren’t getting their monthly taxes paid for.

    • PoisonApple31

      Corporate discounts are given to employees in exchange for the company’s multitude of lines they have for business. The people who do not have an employer discount will not get the $25 when buying a new device. This isn’t for all of T-Mobile customers! $25 per new device isn’t even a fraction off what they people were saving per year.

      • t3lancer2007

        That’s also assuming that people will be buying a new device each year.

  • Turb0wned

    Doesn’t affect me because military discount is not affected BUT, I’m still pissed off. Not the way you treat customers. At least grandfather people that already have it.

    • t3lancer2007

      Do they give a veteran discount? I’m going to be pretty pissed if I just dropped Sprint for T-Mobile and I’m going to lose my 15% discount.

      • Turb0wned

        Not sure as I’m still active but my guess wolf be no.

        • t3lancer2007

          I know at least Sprint does. Plus, there’s barely a warning for this.

  • besweeet

    “A year ago, I promised we’d change this industry, and this is just one more step in the movement. And, we’re not done yet. Stay tuned.”

    Stay tuned for what? More increases?

    • Kisuk3

      Imminent bankrupcy

  • antinorm

    Please don’t give Verizon any ideas. I have a ~20% discount with them thanks to my employer.

    • Averix

      If Verizon were to lower rates by 20% across the board, I’d be all for it. But, they’ll just nuke the discount and only give anything back if you go on Edge to buy a phone with monthly installments even if you don’t need to buy one.

      • PoisonApple31

        They’d never reduce rates like that. Even the fricken employer discounts are a joke because it’s not off the entire plan. You are lucky if it covers your taxes and fees for the month.

        • t3lancer2007

          Taxes and Fees in my area are 18% and my discount is 15%. So I’m pretty happy that it covers those (~$15-$20)

          • PoisonApple31

            Mine is 22% with Verizon, don’t get me wrong I’m happy – but I think they could do more.

          • ThomasMoneyhon


        • Paul

          My discount is 15% off of the total bill… Looks like it’s time to move of t-mobile.

    • The Narrator

      oh the horror of losing discounts. it’s like the ending of a Michael Bay movie for some people.

    • Jason

      I get a 28% discount on Verizon. If I lose it then I’d go with AT&T. They have the second best speed and coverage where I go.

      • khha4113

        Do you think AT&T would not follow suit if VZ and T-Mobile do that? With this move, T-Mobile would destroy all good reputations it has so far!

  • James_75

    Translation: “We can no longer afford to give discounts”.

    • Intellectua1

      Exactly.. I literally laughed out loud..

    • PoisonApple31

      “We spend all this money on customer ETFs and now they are telling us 2G doesn’t cut it in rural areas! Time to end the discounts.”

      • The Narrator

        LTE is rolling out good.

        • PoisonApple31

          Same for Sprint.

          • The Narrator

            Except their speeds suck, T-Mobile doesn’t.

          • PoisonApple31

            At least Sprint has coverage in my area, unlike T-Mobile.

          • The Narrator

            Coverage on Sprint means nothing. Texts are hardly ever sent, speeds are super slow. Verizon/AT&T/T-Mobile/Sprint

          • PoisonApple31

            Overall, I’d agree with you. Just not in Wisconsin, T-Mobile is dead last here.

          • michael arazan

            Nice to leave the Highways in the middle of nowhere and still get coverage by sprint, where t-mo services die 200 feet off the highway.

    • The Narrator

      When you challenge the competition, and offer speeds of said competition, it gets expensive. Notice I didn’t say coverage, because they are actively improving it in city pops where people never leave so it’s perfect for them

    • New_Guy

      That’s what I call a bait and switch. Ouch…

    • Jroc869, Nexus-Life

      Translation: its an April fools day joke. I Dont care if they say it isnt. They are in the business of making themselves look good not bad.

    • John Davids

      No, its about transforming the wireless industry into something more akin to landline ISPs. They should be dumb pipes to the internet. Does your electric company subsidize your oven? Does your gas company subsidize your furnace? Does your ISP subsidize your home computer? It is high time that wireless internet providers got out of the business of selling devices and playing this ultra complex game of contracts, discounts, and subsidies. By removing all this crap from the process, you make the entire system cheaper and more simplistic for everyone. I want my wireless carrier to spend their money on network improvements, not holiday advertising for the latest phone…and this is EXACTLY what T-Mobile is trying to do.

      • Dominick White

        Yet if Verizon or Att was doing this, you be singing a different tone

        • John Davids

          And why do you think that?

          • Dominick White

            Seem like the many people that just in love with t-mobile cause they are the under dog and hate att and verizon because they are on top

          • John Davids

            That may or may not be for others. However, my opinion on T-Mobile’s actions would be the same regardless of what company is executing them. I am interested in furthering the goal of a more open and accessible internet and making wireless providers strictly dumb pipes to the internet (see: ISPs).

      • James_75

        I want companies to be free to handle their business models however they see fit, free from the force you seem to be advocating. I don’t have a problem with T Mobile making this decision at all… it’s the marketing spin behind it that cracks me up. Just be honest TMobile and admit that you simply can’t afford to keep giving discounts in the way that your competitors can because you simply aren’t as successful yet.. there’s no shame in that.

        • John Davids

          To be honest, neither of us know (or ever will) the “true” reasoning behind this move. We don’t sit on the board of directors. However, with everything T-Mo has done in the past year, I tend to believe this is another legitimate effort to transform the wireless industry to look more like today’s landline ISPs as I outlined above. You seem to think its purely profit driven. As with most things in life, there is probably a little truth to both outlooks 🙂

  • duke69111

    This is one move I don’t agree with.

    • Thomas

      Agreed. Total b.s. here. Didn’t they just take way unlimited data from existing customers not to long ago too as well.

      • No they still offer unlimited data

        • Thomas

          Thanks for the clarification 😉

      • BobbyG

        they just raised the rate $10/month

    • ThomasMoneyhon

      Because they are broke as hell and their parent company wants them sold. You have to trim the books.

  • Prox

    Upset by this whole change, but still cheaper than the other 3 carriers. In the end, I will just carry on, living my life, with T-Mobile.