I have never been a big fan of contracts. There are very few times in business where it would actually make sense to sue someone over violation of that contract. But, contracts are a good thing to set expectations of both parties in terms of cost, products or services delivered, etc. Contracts are in place so people perform their part for an agreed to period of time.
But in the case of T-Mobile, its only a contract until they say that it isn’t. Mobile telephone companies give you that discounted phone in exchange for a 2 year commitment.Try to switch before your contract is up and they sock with a huge term initiation fee. The Chicago Tribune reported a few weeks back that T-Mobile had terminated a customer of 6 years because they were no longer profitable for the company. Apparently the customer gave her phone to her daugher who is now using it in Winona, MN where there are no T-Mobile cell phone towers. As a result, the phone calls all have to roam (use other company’s cell towers) and are less profitable to T-Mobile. So in May, the company disconnected her phone! Apparently this is in the fine print of paragraph 7 of the contract that allows the company to do if they deem your use of the phone “excessive, unusually burdensome or unprofitable”. Unsually burdensome and unprofitable? Doesn’t the company take these into consideration when we sign a two year contract? What if I wanted to break the contract because it became unprofitable or too expensive to use their service? I doubt if there is anything in paragraph 7 that allows me to break the contract.