T-Mobile warns customers that a key service will double in price

T-Mobile has been rolling out price increases over the past few months and will soon make another despite elevated customer losses.

In January, the carrier raised its Regulatory Programs & Telco Recovery fee, which customers pay on their monthly bills. It also started charging $3 a month for its Apple TV “On Us” perk, which had been free for customers on Plus-level phone plans since 2021.

By March, T-Mobile sparked backlash when it began issuing a $35 Device Connection Charge to customers who purchased devices directly from Apple. It also quietly raised its restocking fee for device returns by $5 to $10 (depending on the device’s price). 

Amid these changes, T-Mobile CEO Srini Gopalan revealed during an earnings call in April that the company’s postpaid phone churn, the percentage of customers that discontinued their postpaid phone service, ticked up by 3 basis points year over year. 

Traveling T-Mobile customers will soon have to pay more

Despite this spike in churn, T-Mobile has recently warned customers that it will double rates for calls made while traveling outside the U.S.

In a recent Reddit post, a T-Mobile customer shared a screenshot of a text message the carrier sent them, announcing that the rate for calls made abroad will increase from $0.25 per minute to $0.50 per minute. 

This means that for every phone call that lasts for two minutes, customers will be charged $1, and for every hour-long conversation, they will face a $30 fee. T-Mobile confirmed on its website that this price hike will begin on June 25. 

Related: T-Mobile drops new free perks for customers as pressure builds

To avoid this charge, customers can either stick to texting while traveling abroad, as it’s free for those on T-Mobile’s Experience Beyond and Experience More plans. 

Customers can also purchase one of T-Mobile’s International Passes, which all include free calls and high-speed data. The cheapest pass is the 1 Day Pass at $10. The 10 Day Pass is $35 and the 30 Day Pass is $50. 

T-Mobile’s latest rate increase comes after it hiked the price of its 1 Day Pass from $5 to its current price in April. However, to lessen the blow of the change, it increased the high-speed data allowance on the plan from 512 MB to 2 GB.

T-Mobile’s latest price increase tests customer loyalty

T-Mobile’s continuous price increases threaten to push more loyal customers out the door as the carrier faces heightened competition in its wireless business. 

While AT&T, Verizon and cable providers have been ramping up bundle deals and device promotions to lure in new customers, T-Mobile is also battling the growing popularity of mobile virtual network operators (MVNOs). 

MVNOs usually offer consumers wireless service at significantly lower prices compared to traditional wireless providers. 

The rapid growth of satellite mobile service is also further intensifying competition in the U.S. wireless market. 

More T-Mobile News:

• T-Mobile rolls back 2 customer discount changes after backlash
• T-Mobile drops new free perks for customers as pressure builds
• T-Mobile lifts a frustrating perk restriction for Costco members

SpaceX’s Starlink Mobile, previously known as Direct to Cell when it launched in 2024, has recently surpassed 10 million subscribers, according to a report from SDX Central. 

In addition to Starlink’s growth, Amazon plans to soon offer mobile services through the upcoming launch of its satellite network, Amazon Leo. 

In a Light Reading Report in February, Recon Analytics analyst XJ Wang said that the U.S. wireless market “has never been this intense.”

“The US wireless market has evolved from a tiered hierarchy to a highly competitive equilibrium,” he said.

As the number of wireless service options grows, U.S. consumers are increasingly exploring them as higher prices prompt them to switch carriers, according to a recent survey from Oxio.

Why U.S. consumers are reconsidering their wireless provider:

• About 70% of U.S. consumers reassess their wireless plan at least once a year.
• Rising monthly costs are a major trigger, with 58% of consumers saying price hikes prompt them to rethink their current wireless provider. 
• Affordable pricing remains the top factor in choosing a new carrier, with 79% of consumers citing it as a priority.
• Also, 40% said billing transparency is the most important when deciding on a new wireless provider.
  Source: Oxio

In the survey release, Oxio CEO Nicolas Girard said that U.S. consumers are taking more action to gain greater control and transparency over their wireless plans.

“Consumers are actively evaluating plans, comparing value and reacting quickly to price increases,” said Girard. “Switching is no longer rare, and the friction that once protected incumbents is fading. Loyalty can no longer be assumed. It must be earned and re-earned.”

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