T-Mobile, one of the largest phone carriers in the U.S., has found itself in hot water over the past year and a half after it rolled out price increases, cut discounts and altered phone plans, angering customers.

In its latest earnings report, T-Mobile revealed that while it added 1 million new postpaid phone customers during the third quarter of this year, its postpaid phone churn (the number of customers who canceled their phone service) spiked by 3 basis points year-over-year.

The increased loss of customers occurs during a time when more Americans are switching phone providers due to higher monthly bills. 

T-Mobile recently saw more customers cancel their postpaid phone service.

Shuttershock/Helen89

How higher phone bills are impacting U.S. consumers:

  • About 42% of Verizon, T-Mobile, and AT&T customers have seen their phone bills spike in the past year, which is 7% higher than average. 
  • Also, 58% of Verizon, T-Mobile, and AT&T customers are considering switching to a different phone carrier as prices go up.
  • T-Mobile risks losing a combined 75.9 million customers due to high mobile plan pricing.
    Source: WhistleOut

A yearslong T-Mobile perk will no longer be free

Over the past few weeks, T-Mobile has implemented more drastic changes, affecting its phone customers. In October, T-Mobile hiked its late fee for customers who don’t pay their bills on time. It also warned customers that it will be retiring its JUMP! On Demand program on Dec. 1. 

T-Mobile also began informing customers that they will lose their autopay discount if they make early payments with a credit card. 

In late October, the company began requiring customers who wish to set up payment arrangements for past-due balances to do so through the T-Life app, rather than in-person visits to a T-Mobile store or the company’s automated phone system.

Now, T-Mobile has sent another stern warning to customers, and this time it affects a free yearslong perk.

Related: T-Mobile to offer internet customers free perk rivals don’t have

Starting Jan. 1, 2026, the phone carrier will begin charging $3 a month for its Apple TV “On Us” perk, which has been free for “Plus”-level phone plan customers since 2021.

Customers who do not have the Apple TV “On Us” perk but still have a discounted Apple TV plan through T-Mobile will pay $12.99 rather than $9.99 per month. 

The phone carrier began warning customers of this upcoming change via text message a few days ago, citing Apple TV’s latest price increase, which took effect in August.

“Apple recently announced a price increase, raising Apple TV subscriptions to $12.99/mo,” said T-Mobile in its text message to impacted customers. “As a T-Mobile customer, your plan includes a $9.99/mo benefit. There are no changes to your bill now but, effective 1/1/2026, your Apple TV will be $3.00/mo after your T-Mobile discount. To learn more about your benefit or remove your Apple TV subscription, visit T-Life.”

T-Mobile customers are not happy with the change

Several T-Mobile customers took to social media platform Reddit to express their frustration with the change. Some vowed to remove the Apple TV perk from their plans, while others threatened to switch phone carriers as they are tired of T-Mobile’s pricing changes. 

“I guess no more Charlie Brown for my daughter everytime i tell someone how good TMO is they go do something dumb and make me put my foot in my mouth,” wrote one customer. 

“So T-Mobile couldn’t reach a deal with them, and we as customers are the ones who would get affected? No thanks — I’m canceling it. Apple TV has free trials anyway, and in the end you never end up paying for it,” wrote another. 

“I love apple tv. Find that most of the best show/series are there. But will look into getting appleone from verizon. Apple tv, apple arcade, apple music and 50gb icloud for $15,” wrote another T-Mobile customer. 

It is no surprise that customers are opting out of their Apple TV benefit to avoid paying the hiked fee. Many consumers nationwide have been battling rising streaming prices over the past few years, leading to a surge in streaming cancellations. 

How Americans are responding to higher streaming costs:

  • Approximately 76% of Americans watch shows through paid streaming services.
  • The average person is subscribed to a little over 3.5 popular streaming services, which costs $58 per month on average.
  • Additionally, 84% of people have canceled a streaming subscription in the past, with price increases being the most common reason and lack of use the second most common reason.
  • Netflix is the most widely used streaming service, with 88% of its subscribers using it weekly, while Apple TV is used the least, with 57% of subscribers using the platform weekly.
    Source: All About Cookies

“Price is certainly one of the most important factors when people choose streaming subscriptions,” said Yu Cai, a professor of cybersecurity at Michigan Tech, in the survey. “However, the situation is dynamic, and user preferences vary widely. Some may prioritize the convenience and flexibility of streaming services, while others may reconsider the value proposition as costs rise.”

T-Mobile doubles down on tackling customer frustrations

The move from T-Mobile comes after it generated a net income of $2.7 billion during the third quarter of this year, which is about 11% lower than what it earned during the same quarter in 2024.

The phone carrier recently decided to replace its CEO as it undergoes a “digital transformation” to attract more customers. On Nov. 1, Srini Gopalan officially became CEO of T-Mobile, replacing Mike Sievert, who held the position for over five years. 

More Telecom News:

  • T-Mobile announces free offer for Verizon and AT&T customers
  • ​​Verizon CEO sounds alarm on why customers are leaving in droves
  • Spectrum raises red flag on cause of fleeing customer problem

“The amount of friction and frustration we cause customers today because of our processes and the state of evolution in this industry is phenomenal,” said Gopalan during an earnings call on Oct. 23. “We have a huge opportunity to change that with our digital transformation.”

Despite T-Mobile’s recent performance and its plans to digitally transform itself, a Raymond James analyst note, obtained by Investor’s Business Daily, revealed that increased competition from rival phone carriers remains a significant concern. 

“T-Mobile put up a solid quarter and raised estimates, but the negative narrative around heightened competitiveness is an overhang for the group,” wrote Raymond James analyst Frank Louthan in the note. “Investors are concerned about the potential for a price war from Verizon.”

Related: T-Mobile announces free offer for Verizon and AT&T customers