HeadlinesBriefing favicon HeadlinesBriefing.com

T-Mobile launches new phone plans to combat customer churn

Yahoo Finance •
×

T-Mobile is rolling out two new phone plans in a bid to stem customer defections amid intensifying competition. The carrier's postpaid phone churn spiked by 3 basis points year over year during Q3 2025, prompting executives to take action. After raising prices and fees last year, T-Mobile now offers more affordable options to retain subscribers.

One plan, called Experience More with Appreciation Savings, starts at $75 per month for a single line, down from $85 on the standard Experience More plan. The new offering includes a five-year price lock guarantee, free Netflix, and Apple TV+ for $3 monthly. A second Loyalty Plan provides even lower rates at $65 for one line but caps data at 50GB and eliminates hotspot access.

These moves come as T-Mobile faces pressure from smaller rivals like Consumer Cellular and Visible, which scored higher customer satisfaction ratings in recent surveys. The carrier's brand performance sits at 42.8%, well below competitors who hover above the 75th percentile in loyalty rankings. Market Force Information data shows T-Mobile among the lowest performers in customer retention.

The timing is critical as Verizon and AT&T also intensify their competitive strategies. Verizon recently launched free iPhone 17 and Galaxy S25 deals, while AT&T introduced a $40 monthly plan for customers over 55. With wireless service prices actually declining over the past year according to Bureau of Labor Statistics data, T-Mobile's plan adjustments reflect the shifting dynamics in the telecom industry where price-conscious consumers now have more options than ever.

Quick Fact: T-Mobile's postpaid phone churn increased by 3 basis points year over year during Q3 2025.