T-Mobile Starts Combatting Churn By Eliminating Flex Pay

Posted on Mar 1 2011 - 10:25am by Kyle

When T-Mobile reported their 4th quarter 2010 numbers last week there was good news and bad news. We elected to cover the good news, continued smartphone growth, while most other sites focused on their high churn numbers in both pre and postpaid churn.

In a move that some were expecting T-Mobile is ending the Flex Pay program on March 13th and going with a more traditional program of offering deposits in the $50, $100, $200, and $400 varieties. The deposits will be determined by a credit scoring system and the deposits, like all other carriers, will be given back after 12 months.

The only restrictions with the deposit model is that deposit customers will not be eligible for international roaming or T-mobiles in house equipment financing.

A T-Mobile spokesperson confirmed to us the day the fourth quarter results came out that the Flex Pay program was considered prepaid, as are traditional, pre-packaged prepay programs from T-Mobile, like the ones available at WalMart.

The T-Mobile Flex Pay program was a great option for those who were rebuilding their credit. It simply meant that you’d get the same features as a post paid customer however you’d pay at the beginning of the month instead of the end.  T-Mobile had a competitive advantage with Flex Pay when it comes to credit scoring. Now with all 4 carriers on a level playing field, what happens next is any ones guess.

If you’ve been on the fence about Flex Pay T-Mobile’s deposit program starts March 13, 2011

Source: Tmo-news via phandroid

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  • Neil Lund

    Just another reason for T-mobile customers to switch to Simple Mobile ;)

  • Mytharak

    Flexpay was the reason I switched to T-mobile.

    It is a sad change I doubt will benifit them in the end.

  • http://www.facebook.com/KEMC2k6 Kemuel Chavez

    NoooooooooO! :( I’m a sad panda now :'(