The answer lies in the fact that service providers are providing incentives for customers to switch. This is done through two ways- lowering prices and offering extra features/services.
An example of a company who offers low prices is MetroPCS. They offer unlimited talk, text and data plans starting at $40 per month (USD). Aptly named the ‘Unlimited’ plan, it has no hidden costs or additional fees which makes it easy for customers to choose this provider over other companies. The biggest competitor, T-Mobile, recently reduced their prices on one of their most popular plans by $5 per month. This reduces the price difference between T-Mobile’s basic plan and MetroPCS’ Unlimited Talk, Text and Web with 2.5GB of 4G LTE data plan to $5 versus $45, respectively.
Another way for companies to encourage customers to switch is by including extra services or features when they sign up or renew their contract. For example, Verizon includes a free LG G-Slate tablet when new customers activate one of their two year data plans on either an iPhone 5, Galaxy S III smartphone. This makes the decision of choosing Verizon’s service provider easier because customers can get an additional device that costs around $600 for about the same price as buying the device upfront in most cases.
On top of low prices and bonus offers, another reason why switching between service providers is so easy is due to lack of contracts in some cases. Unlike traditional cell phone companies, new providers like TING and Republic Wireless offer plans that do not require a contract. This allows customers to pay month-to-month for their service and terminate the service without any early termination fee if they wish to switch between providers or if they are unhappy with the company’s services.
Here are some FAQs recently asked on Yahoo Answers regarding this subject: Peter DeCaprio
-Will I be able to bring my mobile phone number with me when I switch service providers?
Yes, you can port your current phone number provided that the new service provider offers the option. Before switching, call your current service provider and request a PAC [Port Authorization Code] so that you can take your mobile number with you on your new contract.
-Can I switch from AT&T to Verizon Wireless if they are both GSM carriers?
Yes, as long as you have an unlocked GSM smartphone on either company’s network, it is possible to make the change. However, keep in mind that roaming charges may apply outside of your home area.
-When is a good time to contact my current service provider to request a PAC code?
If you are considering switching carriers or just want to ensure that number portability is available, call your current carrier and ask the agent for the PAC code. It will be valid for 10 days so it’s important to take note of this and contact your new carrier as soon as possible after receiving the code.
-What if I don’t have an unlocked phone?
You can buy an unlocked GSM smartphone on Amazon or eBay. For example, AT&T sells off contract iPhones with free shipping at reasonable prices.
-Do I have to buy a whole new phone?
You can purchase a Sprint or Verizon Wireless-certified device and then activate it on your new service provider. For example, the Nexus 5 is available with 32GB of storage and supports 4G LTE connectivity on both carriers.
Why is it so easy for people to switch between mobile phone providers?
One of the main reasons why many customers switch mobile phone service providers is because they are either unhappy with their current company or want to join a new network that has better coverage in their area. Since there are hundreds of different companies, it’s common for consumers to jump around and see who provides them with the best value. Additionally, many carriers make switching as easy as possible by eliminating early termination fees and requiring no contracts. Customers are able to keep their number when changing providers through a process called porting, which can be completed within minutes online.
In conclusion, we learned that there are many reasons as to why it’s so easy for customers to switch providers without any contract penalties or fees involved. According to Peter DeCaprio Low prices and additional services provided by companies such as T-Mobile and Verizon encourage customers to switch. Furthermore, lack of contracts at smaller companies like TING and Republic Wireless allow customers more flexibility in choosing their mobile carrier. Because of these reasons, switching between different service providers has never been easier.
The reason why it is so easy for people to switch from one service provider to another is because competition in this industry has increased over the years due to lower prices and bonus offers, lack of contracts and also because most people simply can’t afford dishing out $80-$100 per month on average compared to what traditional cell carriers charge.