Over the past year, T-Mobile has attracted millions of new customers; however, it has also lost loyal customers at an alarming rate, following backlash over recent price increases. It is also battling heightened promotional activity from rival phone carriers, which are luring some of T-Mobile’s customers.

In T-Mobile’s third-quarter earnings report for 2025, the company revealed that it welcomed 1 million new postpaid phone customers during the quarter. However, 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 comes during a time when many Americans are exploring alternative options for phone services as they grapple with higher monthly bills. 

Image source: Anna Moneymaker/Getty Images

How higher phone bills are impacting Americans:

  • The average cost of an unlimited data plan for American families is $244 a month.
  • 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.
  • All three phone carriers risk losing a combined 230 million customers due to high mobile plan pricing.
    Source: WhistleOut

The loss of customers also comes after T-Mobile has been rolling out deals and perks through its T-Life app to prevent more customers from switching to other providers. Over the summer, it also launched competitive trade-in deals for iPhones and Samsung Galaxy devices to attract new customers.

“T-Mobile has quietly dropped a lot of what made the company special,” said Dan Kline,
co-editor-in-chief of TheStreet. “It’s not a customer-first company anymore. It’s not offering an experience that’s differentiated from AT&T and Verizon, which makes customers less loyal.”

T-Mobile grants Verizon and AT&T customers a free service

In July, T-Mobile even introduced its new direct-to-cell satellite messaging service called T-Satellite, which was developed in partnership with Starlink, to win back customers. Through over 650 Starlink satellites orbiting in space, the service provides extended coverage to more than “500,000 square miles of U.S. territory that traditional cell towers can’t reach,” according to a July press release. 

T-Satellite allows users to send and receive text messages and share their location in areas where cell towers fail to provide coverage. Users can even send pictures and voice messages on select Android devices and will later have the ability to make video calls. 

Non-T-Mobile customers can currently subscribe to T-Sattelite for $10 a month. However, T-Mobile is now allowing anyone with a compatible phone (including AT&T and Verizon customers) to sign up to access T-Satellite’s 911 emergency texting feature for free. 

Related: T-Mobile customers face harsh new rule for paying bills

The feature is powered by terrestrial cell towers, providing coverage to wireless users in remote areas where traditional coverage is unavailable. 

“T-Mobile Text to 911 with T-Satellite gives peace of mind. It’s there when you need it the most,”  said Mike Katz, president of marketing, strategy and products at T-Mobile, in a new press release. “And it’s too important to keep gated. Now all wireless users with a compatible phone can sign up for T-Mobile Text to 911 for absolutely free.”

There are some exceptions that consumers should be aware of before signing up for the service. First, it’s not compatible with phones that have built-in emergency satellite texting capabilities. This includes the iPhone 14 and later, as well as the Pixel 9 and newer models (excluding the 9A). Second, non-T-Mobile phones must be unlocked and have an available eSIM to activate the service.

T-Mobile’s T-Satellite service aligns with a growing consumer trend

The move from T-Mobile comes after the company was impressed by how T-Satellite performed during the deadly Texas floods, which occurred between July 4 and July 5. The service allowed T-Mobile to transmit millions of emergency messages to customers during the floods.

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“Over a quarter of a million text messages went out over satellite during the most critical moments of this emergency,” said then-T-Mobile CEO Mike Sievert during an earnings call in July. “And people were able to be connected when it mattered.”

Many consumers, especially those who travel, have recently become increasingly interested in acquiring a satellite-enabled smartphone for safety reasons, according to a recent survey from travelers’ insurance company Global Rescue. 

How consumers feel about satellite-enabled smartphones:

  • Over 30% of travelers plan to buy satellite-enabled smartphones soon for enhanced safety and security, while 10% are already using one.
  • Also, 82% of travelersfeel safer with satellite communications due to its emergency capabilities.
  • A total of 49% of travelers say that the ability to call for help out of cellular range is a top reason for their interest in satellite-enabled phones. 
  • Moreover, 37% said that satellite-enabled smartphones would help calm the anxiety of family and friends, offering a safety net for all involved.
    Source: Global Rescue

“Having a reliable way to communicate during emergencies, even in the most remote corners of the world, offers peace of mind,” said Harding Bush, associate director of security operations at Global Rescue, in the survey. “Whether facing a medical crisis or an unexpected natural disaster, the ability to alert emergency services could be life-saving.”

Related: Verizon CEO sounds alarm on why customers are leaving in droves