T-Mobile has unveiled a new program that allows its customers to upgrade their phones as often as twice a year. The cell phone provider has been looking for ways to set itself a part from its mainstream market rivals ever since it got its hands on the ability to market Apple Inc.'s iPhone, a move that has boosted sales of the device over the past few months.
At an event in New York City on Wednesday, the company announced its new "Jump" program that enables customers to upgrade their phones when they want. The Wall Street Journal reports users can upgrade as soon as six months after enrolling in a $10 a month per phone plan. The new plan begins on Sunday and the company has said it protects against malfunction, damage, loss and theft of the device.
Typically users from AT&T, Verizon and Sprint have to wait about a year in between upgrades for their phones. By cutting that time in half, T-Mobile will look much more appealing to users who are fussy about sticking with the same bit of technology or brand for too long.
Chief Executive John Legere, who is relatively new to the company, has been making changes to that T-Mobile's rivals are taking notice of. For example, T-Mobile now lets users purchase their phone or device elsewhere but still allows them to use the T-Mobile services. This goes against industry standards, which typically adhere to a service contract.
T-Mobile had no choice but to innovate and cut against the grain of industry standards as, before Legere's work, the company was deteriorating down to nothing. Last year, it lost more than two million contract subscribers while rival Verizon Wireless added more than five million customers.
The new upgrade program will likely have an impact on Verizon and AT&T who both make users sign a two-year contract and then requires a 24 month period before they are able to upgrade their phone for a discounted rate.
