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T-Mobile exec blasts AT&T over Next plan, claims consumers pay double

Dan Graziano
July 16th, 2013 at 4:15 PM
AT&T Next T-Mobile

In response to T-Mobile’s recent Jump intuitive, AT&T on Tuesday announced a similar program called AT&T Next that allows subscribers to upgrade their phones once every 12 months. What’s more, subscribers aren’t required to pay a down payment, an activation fee, an upgrade fee or a financing fee. Monthly payments will vary depending on the device, ranging from $15 a month to $50 a month, in addition to a customer’s monthly service plan. AT&T’s ambitious plan was surely meant to challenge T-Mobile, however T-Mobile’s executives aren’t worried so far.

Andrew Sherrard, T-Mobile’s senior vice president of marketing, called AT&T Next a “poor imitation” of T-Mobile’s Jump plan. The executive claimed that AT&T’s plan is misleading and will cost customers more than they think. Sherrard noted that unlike T-Mobile, AT&T hasn’t reduced the price of its service plans, despite offering smartphones at full price.

“They’re charging you twice on the same phone and calling that a good deal,” he said in an interview with CNET, adding that AT&T Next doesn’t include insurance, which Jump does. “As people dig into this, they’ll find it’s a much better deal to go with Jump.”

Verizon is also rumored to be preparing to launch a similar plan, known as VZ Edge, that will also compete with T-Mobile. Sherrard isn’t worried, however, and believes Jump will stack up well with whatever Verizon will announce.

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