Amid an increasingly competitive wireless market, T-Mobile has doubled down on launching new offers, such as iPhone deals and free phone lines, to retain loyal customers. 

Despite these efforts, the carrier continues to see more of its phone customers switch to other providers. As it battles rising customer losses, it is testing a bold new service built into its wireless network to gain an edge over its top rivals. 

During the fourth quarter of 2025, T-Mobile saw its postpaid phone churn, the rate at which postpaid phone customers canceled service, reach 1.02%, according to the company’s latest earnings report. This is 0.13% higher than the churn it reported for this segment during the third quarter. 

The increased loss comes as T-Mobile aggressively competes with Verizon and AT&T, which have both ramped up promotions to lure new customers. The phone carrier also faces heightened competition from cable TV companies that are attracting new customers with bundled phone, TV, and internet offers.

Coupled with the threat of growing competition, T-Mobile’s price hikes and phone plan changes last year may have continued to push customers out the door. More consumers are resisting high phone plan pricing as they face economic pressures. 

A survey from Oxio last year found that 90% of consumers would consider alternatives to traditional wireless carriers, and 46% said that finding a lower-priced phone plan was their main reason for switching providers. 

T-Mobile hopes a new service will keep its customers away from rivals.

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T-Mobile tests free new service for customers

To make customers who are considering cutting ties with the company think twice, T-Mobile is preparing to launch a “live translation” tool that will automatically be embedded in its wireless network, according to a recent press release. 

The feature translates conversations from any phone call made on T-Mobile’s network in real time, with no apps or extra fees required. 

The tool, powered by artificial intelligence, can translate conversations in over 50 languages across over 215 countries, as long as at least one person is on T-Mobile’s network. 

Related: T-Mobile drops 2 new phone plans to stop customers from fleeing

A limited number of eligible customers can sign up for the beta version, which launches in the spring, on T-Mobile’s website or the T-Life app. Once the feature goes live, customers who signed up can start a phone call and dial *87* on their keypad to turn on live translation.

“Some of the biggest barriers wireless customers face are the simplest ones — like being able to understand each other,” said T-Mobile CEO Srini Gopalan in the press release.

“When language gets in the way, the network gets reduced to just a signal — and that’s not who we are. By bringing real-time AI directly into our network, we’re delivering more than connectivity — turning conversations into community, starting with Live Translation,” he continued.

More Telecom News:

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  • AT&T closes billion-dollar acquisition to win back customers

T-Mobile plans to gradually test this service before launching it commercially later this year, granting millions of customers access. 

Currently, Verizon and AT&T don’t offer AI-powered live translation that’s built into their networks. To use an AI-powered live translation service on those networks, consumers have to purchase a phone that supports the feature, such as a Google Pixel or an iPhone. 

T-Mobile faces a rapidly changing telecom industry

T-Mobile’s introduction of its live translation service comes at a time when telecom companies are expected to experiment with AI and conduct acquisitions, as well as launch new products, services and business models amid a competitive environment, according to industry analyst Jeff Kagan. 

“It seems both AT&T and Verizon are beginning to show renewed promise,” said Kagan in a press release. “In my opinion, this is the first time in quite a few years that real growth potential is emerging. T-Mobile has also staged a strong recovery over the past decade.”

“I believe these new directions represent the right path forward for the U.S. telecom marketplace,” he added.

As the telecom industry grows, T-Mobile leads in consumer satisfaction among traditional wireless carriers including AT&T and Verizon. However, T-Mobile fails to beat the average consumer satisfaction score of mobile virtual network operators (MVNOs), which offer cheaper phone plans than traditional carriers, according to a recent J.D. Power survey.

Wireless carrier satisfaction rates:

  • The average wireless carrier satisfaction score for postpaid plans under traditional carriers is 603 (on a 1,000-point scale).
  • T-Mobile has a 631 satisfaction score, ranking No. 1 in the segment.
  • However, MVNOs have an average satisfaction score of 630.
  • MVNOs such as Consumer Cellular and Google Fi Wireless score 721 and 685, respectively.
    Source: J.D. Power

“Network quality and pricing is just the first step” in attracting customers, as true loyalty comes from how easy it is to do business with the company, said Carl Lepper, senior director of technology, media, and telecom at J.D. Power, in a press release. 

“True loyalty comes from how easy it is for customers to work with a carrier once they’re in the system, especially when it comes to resolving issues, managing bills, and getting answers quickly,” said Lepper. “These experiences drive advocacy and long-term retention. When interactions are effortless, it shows in low churn and high satisfaction.”

Related: Verizon CEO shifts gears after 2.25 million customers depart