T-Mobile, one of the top phone carriers in the U.S., is shifting its strategy as it battles increased customer losses and tougher competition from its growing list of rivals. 

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

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

Cable companies, such as Spectrum and Xfinity, have also been luring customers away from traditional phone carriers by offering discounted phone plans when bundled with TV and internet.

As the wireless market becomes increasingly competitive, more consumers are exploring various options for more affordable phone plans outside their current provider, especially as they grapple with rising monthly bills, according to a recent survey from Oxio. 

Why U.S. consumers are considering switching phone providers: 

  • Approximately 90% of consumers would consider alternatives to traditional carriers.
  • Additionally, 85% consider cost to be a primary factor in selecting a mobile provider.
  • Additionally, 46% of consumers rank a lower-priced plan as their main reason for switching providers, while 33% prioritize better network coverage.
    Source: Oxio

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

T-Mobile is seeing an uptick in phone customers pulling the plug on service.

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T-Mobile launches a bold new phone plan option for customers

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

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

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

Customers will also have unlimited data abroad, specifically 30GB of high-speed data per month (256 kbps after) in over 215 countries and destinations. Satellite connectivity is also included with unlimited text and data via satellite-optimized apps.

Related: T-Mobile quietly makes drastic decision after losing customers

Some perks attached to 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 two-year device upgrades.

T-Mobile stated that its Better Value plan will save families over $1,000 compared to similar plans from AT&T and Verizon, thanks to these “built-in benefits.” It also stated that existing T-Mobile customers looking to upgrade from their Essentials family plan with three or more lines can save over $50 a month on 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,” said Mike Katz, T-Mobile chief business and product officer, in the 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 customers about $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 families roughly $138 to $183 per month, depending on the plan tier, for three lines on its unlimited plans. These prices are also before taxes and fees, and with the monthly autopay discount activated. 

T-Mobile doubles down on luring customers amid growing threats

The move from T-Mobile follows its launch of a new initiative last month called “15 Minutes to Better,” which ensures that consumers can switch phone carriers in 15 minutes or less. 

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

T-Mobile has been stepping 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. 

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

Currently, T-Mobile owns 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 has also been facing the growing threat of Mobile Virtual Network Operators (MVNOs). These wireless providers lease network capacity, offering more competitive pricing to consumers, compared to traditional phone carriers, and they have higher satisfaction rates, according to a recent survey from J.D. Power. 

Phone carrier consumer satisfaction rates for postpaid phone plans:

  • T-Mobile has a consumer satisfaction score of 636 (on a 1,000-point scale)for its postpaid plans, surpassing Verizon and AT&T, which have scores of 583 and 573, respectively. 
  • However, MVNOs have an average satisfaction score of 641.
  • Specifically, Consumer Cellular has a score of 726, while Google Fi Wireless has a score of 671.
    Source: J.D. Power 

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

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