T-Mobile, one of the largest US phone carriers, is changing its strategy as it grapples with increased customer losses and tougher competition from its growing list of rivals.
During the third quarter of 2025, T-Mobile’s postpaid churn rate (the number of customers who cancel their phone service) reached 0.89%, which is 3 basis points higher than the churn rate it reported for the same quarter last year, according to its latest earnings report.
The troubling loss of loyal customers comes after T-Mobile implemented price hikes and phone plan changes throughout the year that sparked backlash. It also comes at a time when the company’s top competitors, Verizon and AT&T, have both rolled out free perks and phone deals to lure customers.
Cable companies like Spectrum and Xfinity have also lured customers away from traditional phone carriers by offering discounted phone plans when bundled with TV and Internet.
As the wireless market becomes more competitive, more consumers are exploring options for more affordable phone plans outside of their current provider, especially as they face rising monthly bills, according to a recent Oxio survey.
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Approximate 90% of consumers would consider alternatives to traditional carriers.
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In addition, 85% consider the cost to be a primary factor when selecting a mobile phone provider.
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In addition, 46% of consumers rank a lower price plan like theirs the main reason for switching providers, while 33% prioritize better network coverage.
Source: Oxio
“Research shows that many consumers are looking for greater plan clarity and value — they want services that match what they actually use,” Oxio CcxEO Nicolas Girard said in a statement. “We’re seeing strong interest in personalization, transparency and more control over mobile services.”
Amid this upward trend, T-Mobile has introduced a new phone plan that it claims is “its best plan yet,” according to a recent press release.
T-Mobile’s new “Better Value” phone plan starts at $140 a month for three lines with autopay, which means each line is $46 for families, plus taxes and fees.
The plan also includes a five-year price lock guarantee for talk, text and data. It also offers unlimited premium data on T-Mobile’s 5G network and unlimited hotspot data, which includes 250GB of high-speed hotspot data each month (600kbps after).
Customers will also get unlimited data abroad, specifically 30GB of high-speed data per month (256kbps after) in over 215 countries and destinations. Satellite connectivity is also included with unlimited text and data via satellite-optimized apps.
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Some perks attached to the plan include free Netflix and Hulu subscriptions and Apple TV for $3 a month. It also offers home internet backup for an additional $10 per month with autopay (plus fees and charges) and upgrades for two years.
T-Mobile said its Better Value plan will save families more than $1,000 compared to similar plans from AT&T and Verizon, thanks to these “built-in benefits.” It also said existing T-Mobile customers who want to upgrade from their Essentials family plan with three or more lines can save more than $50 a month in 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,” Mike Katz, T-Mobile chief business and product officer, said 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 level, Verizon charges customers between $100 and $175 per month for three lines on its unlimited plans (with autopay enabled and before taxes and fees). They also come with a three-year price lock guarantee.
AT&T charges families between $138 and $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 enabled.
The move from T-Mobile follows the launch of a new initiative last month called “15 Minutes to Better,” which ensures consumers can switch carriers in 15 minutes or less.
The switching process is completed through the T-Life app or T-Mobile’s website, where consumers can connect to their current plan from a rival carrier using the company’s “Easy Switch” tool, which will match them with a competitive T-Mobile offer.
T-Mobile has stepped up its game to compete with Verizon and AT&T as they are all neck and neck in terms of market share in the wireless industry.
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T-Mobile currently has 20.8% market share in the industry, while Verizon has 23.8% and AT&T has 19.4%, according to data from market research firm IBISWorld, which was shared with TheStreet.
T-Mobile also faces the growing threat of mobile virtual network operators (MVNOs). These wireless service providers lease network capacity, offering consumers more competitive pricing compared to traditional phone carriers and have higher satisfaction rates, according to a recent survey from JD Power.
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T-Mobile has one consumer satisfaction score of 636 (on a 1,000-point scale) for its postpaid plans, beating Verizon and AT&T, which have dozens 583 and 573, respectively.
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However, MVNO sites have an average satisfaction score of 641.
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More accurate, Consumer Cellular has a score of 726while Google Fi Wireless has a score of 671.
Source: JD Power
“Findings show that value is the most important driver of overall experience, followed closely by service quality,” Carl Lepper, senior director of technology, media and telecommunications at JD Power, said in a press release.
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This story was originally published by TheStreet on January 10, 2026, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.