Reminder: New TEP Tiers & Deductibles in June

We posted about this before (TEP Changes in June) - but wanted to remind everyone, and add a couple of details, like the fact that even if the MSRP changes, the deductible will remain the same as the initial launch. Also, anyone that buys a Tier 3 or 4 device before 6/17 will  see a $3 credit in their monthly bill from July through September (to offset the legal notice that is required for changing the price). At the new prices, is TEP worth it? Let's hear your thoughts in the comments or via twitter #TEPsprint

• Beginning 6/17/12, new Tiered TEP, ERP and Deductibles will be introduced based upon Device Standard Retail Price (SRP) at time of launch.


• A new $11 TEP Tier will be introduced to support high-end device models and the $8 TEP Tier remains in place for existing device models.


• A new $9 ERP Tier will be introduced to support high-end device models and the $5 ERP Tier remains in place for existing device models


• ESRP Fees will remain the same


• Apple iPhones are NOT eligible for TEP.

.	ERP Deductible Effective 6/17/12	Device SRP at Time of Launch	TEP Monthly Fee Effective 6/17/12	ERP Monthly Fee Effective 6/17/12	ESRP Monthly Fee Effective 6/17/12
Tier 1	$50	= $324.99	$8	$5	$4
Tier 2	$100	$325 - $549.98	$8	$5	$4
Tier 3	$150	$549.99 - $599.99	$11	$9	$4
Tier 4	$200	= $600+	$11	$9	$4
Whenever a device launches, it launches in a specific tier and remains in that tier, even if the SRP changes.

• Customers purchasing a Tier 1 or Tier 2 device models with TEP remain at the $8 Tier and device models with ERP remain at the $5 Tier.


• Customers purchasing a Tier 3 or Tier 4 new device model and add TEP or ERP before 6/17, will:
  
  
  
  • Be at the $8 Tier and then move to the $11 Tier for TEP
  
  
  • Be at the $5 Tier and then move to the $8 Tier for ERP
  
  
  • Receive multiple written notifications explaining the increase in their monthly TEP charges, ERP charges and deductibles
  
  
  • Including a postcard for TEP and ERP customers
  
  
  • Be sent a legal notification in the form of a letter by mail after 6/17 notifying them that their TEP monthly charge will be increased from $8 to $11 and ERP monthly charge will be increased from $5 to $9
  
  
  • TEP customers will see a $3 credit in their monthly bill from July through September, which will meet Sprint’s legal requirement to notify customers 90 days in advance of a price increase.
  
  
  • ERP customers will see a $4 credit in their monthly bill from July through September, which will meet Sprint’s legal requirement to notify customers 90 days in advance of a price increase.
  
  
  
  

New Sprint TEP tiers and deductibles coming in June

On 6/17/12, Sprint is introducing new TEP tiers and deductibles based on device Standard Retail Price (SRP).

• The $8 TEP tier remains in place for existing device models, while a new $11 TEP tier will be introduced to support high-end device models.


• Apple iPhones are not eligible for TEP.


• Tiers include:

	Deductible	Device SRP	Monthly TEP Charge
Tier 1	$50	≤$324.99	$8
Tier 2	$100	$325 -$549.98	$8
Tier 3	$150	$549.99 -$599.99	$11
Tier 4	$200	≥$600	$11

Why you need to know it:

• Customers buying a Tier 1 or Tier 2 device with TEP remain at the $8 tier.


• Customers buying a Tier 3 or Tier 4 new device and add TEP before 6/17 will:
  
  
  
  • Be at the $8 tier and then move to the $11 tier.
  
  
  • Receive multiple written notifications explaining the increase in their monthly TEP charges and deductibles.
  
  
  • Be sent a legal notification in the form of a letter by mail after 6/17/12 notifying them that their TEP monthly charge will be increased from $8 to $11.
  
  
  • See a $3 credit in their monthly bill from July through September, which will meet Sprint’s legal requirement to notify customers 90 days in advance of a price increase.
  
  
  
  

What you need to do:

• Tell customers about the new TEP changes when they buy a Tier 3 or Tier 4 device model before 6/17/12.


• For more information about these changes,see TEP, ERP, ESRP Reference Matrix and Know Changes to TEP Program Coming in June
  
  
  
  • CST: Go to CST Search and enter the keywords tep matrix and tep objections.
  
  
  • TW-Ops: Go to Products & Pricing > Product or Service drop-down list > Sprint Protection Programs
  
  
  
  

Frequently Asked Questions

What is TEP?
Total Equipment Protection covers virtually anything that can happen to your phone. Without TEP, customers who lose or damage their device might need to shell out the full suggested retail price (for example, $549.99 for a Galaxy Nexus) to replace their device.

Are there any Apps I can use to help with my TEP service?
Yes. When you enroll, you will receive an App that lets you track, alarm and remotely lock or wipe your device if it is lost or stolen.

If I already have TEP, will I be grandfathered into that rate?
Starting 6/17/12, TEP will be at $11 with a $150 deductible and will apply to the 4G LTE devices with a price of $549.00 and after 6/17/12.

When will I see this increase in TEP on my bill?
When you receive your next bill after 6/17/12, the new price will be listed.

Will I receive any other reminders about this besides this blog?
Yes. Within a few weeks, you will receive a welcome postcard in the mail. This postcard will remind you about the price change. You will also receive an email notification in June or early July that will provide more detail about the price change.

Why will the price for TEP on my 4G LTE device be increased to $11 in June. This seems high.
Due to the high replacement cost of these phones, it was necessary to increase the monthly charge.

Is this really worth the price?
Yes. You could be enrolled in TEP for 3 years and pay the $150 deductible for a loss/theft/damage claim and still not equal the replacement cost of your phone.

When can I sign up for TEP?
You can sign up for Total Monthly Protection within the first month of any device purchased and activated.