Just last week T-Mobile announced its new Jump program which enables subscribers to upgrade their devices twice a year for just $10 per month. Prior to announcing the program, T-Mobile ran ads taunting AT&T for its recent increase in device upgrade eligibility program. Nevertheless, AT&T has responded to Jump with its own offering called ‘Next,’ which according to one T-Mobile executive is a “poor imitation” of their Jump program.
Through AT&T Next the carrier allows subscribers to upgrade their devices every year while paying for the device in 20 equal monthly installments. However subscribers are charged the same service rate that they were being charged with subsidized devices. T-Mobile recently launched its no contract service plans which are cheaper as the carrier is no longer subsidizing devices. Andrew Sherrard, the T-Mobile executive, says that AT&T is charging subscribers “twice on the same phone and calling that a good deal.” With Jump, T-Mobile subscribers also get comprehensive insurance against device malfunction, theft and loss. AT&T Next doesn’t provide this incentive to its subscribers. No matter how you look at it, T-Mobile’s Jump program has proved to be a game changer. Verizon’s similar program has also been rumored, so its quite evident that these biggest U.S. carriers are responding to T-Mobile’s latest offering.