T-Mobile Changes Bold Phone Plan After Customer Loss

T-Mobile, one of America’s top phone carriers, is changing its strategy as it faces growing customer losses and stiff competition from a growing list of competitors.

In the third quarter of 2025, T-Mobile’s postpaid phone churn rate (the number of customers who cancel their phone service) reached 0.89%, 3 basis points higher than the churn reported in the same quarter last year, according to its latest earnings report.

The loss of loyal customers comes after T-Mobile implemented price increases and phone plan changes throughout the year, which sparked backlash. It also comes at a time when the company’s top competitors, Verizon and AT&T, are both launching free perks and phone deals to lure customers.

Cable companies like Spectrum and Xfinity have also lured customers away from traditional phone carriers by offering discounted phone plans bundled with TV and Internet.

As the wireless market becomes increasingly competitive, more consumers are looking outside their current provider for more affordable phone plans, especially as they face rising monthly bills, according to a recent survey by Oxio.

• approx 90% will be of consumers Consider the options to traditional carriers.

• Also, 85% Assume the cost is a primary factor In selecting a mobile provider.

• Also, 46% Category of consumers a Low price plan as their The main reason For switching providers, while 33% Prioritize good network coverage.
  Source: Oxio

“Research shows that many consumers are looking for greater plan clarity and value — they want services they actually use,” Oxio CcxEO Nicholas Girard said in a statement. “We’re seeing strong interest in personalization, transparency, and more control over mobile services.”

Amid this growing trend, T-Mobile has introduced a new phone plan that it claims is the “most value-packed plan,” according to a recent press release.

T-Mobile’s new “Better Value” phone plan starts at $140 a month for autopay for three lines, which means $46 per line for families, plus taxes and fees.

The plan also includes a five-year price-lock guarantee on talk, text and data. It also includes unlimited premium data and unlimited hotspot data on T-Mobile’s 5G network, including 250GB of high-speed hotspot data every month (600 kbps onwards).

Customers will also have unlimited data abroad, specifically 30 GB of high-speed data per month (256 kbps onwards) to more than 215 countries and destinations. Satellite connectivity also includes unlimited text and data via satellite-optimized apps.

Related: T-Mobile Makes Tough Decision After Quietly Losing Customers

Some of the perks included in the plan include free Netflix and Hulu subscriptions, and Apple TV for $3 per month. It also offers home Internet backup for an additional $10 per month with AutoPay (plus taxes and fees), and a two-year device upgrade.

T-Mobile says its Better Value plan will save families more than $1,000 compared to similar plans from AT&T and Verizon, thanks to these “built-in benefits.” It also said that existing T-Mobile customers looking to upgrade three or more lines from their Essential Family plan can save more than $50 per month in benefits by switching to its Better Value plan.

“Families are looking for ways to save and get more value from the services they rely on every day, especially wireless,” Mike Katz, T-Mobile chief business and product officer, said in a press release. “While AT&T and Verizon keep asking people to pay more for less, we’re doing the opposite.”

Currently, depending on the plan tier, Verizon charges $100 to $175 per month for three lines on its unlimited plans (with autopay activated and before taxes and fees). They also come with a three-year price-lock guarantee.

AT&T charges about $138 to $183 per month, depending on the plan tier, for three lines on its unlimited plans. These prices are before taxes and fees, and the monthly auto-pay discount has been activated.

T-Mobile follows last month’s launch of a new initiative called “15 Minutes to Better,” which ensures consumers can switch phone carriers in 15 minutes or less.

The switching process is completed either through T-Mobile’s T-Life app or website, where consumers can use the company’s “Easy Switch” tool to sign into their current plan from a rival phone carrier, which will match them with a competing T-Mobile offering.

T-Mobile has stepped up its game to compete with Verizon and AT&T, as they are all nearly neck and neck in terms of market share in the wireless telecommunications industry.

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Currently, T-Mobile owns a 20.8% market share in the industry, while Verizon owns 23.8% and AT&T owns 19.4%, according to data from market research company IBISWorld, which was shared with TheStreet.

T-Mobile is facing a growing threat from mobile virtual network operators (MVNOs). These wireless providers lease network capacity, offering consumers more competitive prices than traditional phone carriers, and they have higher satisfaction rates, according to a recent survey by JD Power.

• T-Mobile has one Consumer satisfaction score who 636 (on a 1,000-point scale) for its postpaid plans, beating out Verizon and AT&T, which have multiple points. 583 and 573, respectively.

• but, MVNOs has an average satisfaction score of 641.

• in particular, Consumer Cellular is the number of 726While Google Fi Wireless is the number of 671.
  Source: JD Power

“The findings show that price is the most important driver of the overall experience, followed closely by service quality,” Carl Lepper, senior director of technology, media and telecom at JD Power, said in a press release.

Related: Verizon Cracks Down on Internet Customers Violating Core Rule

This story was originally published by TheStreet on January 10, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.