Editorials · Readers Voice

I don't see T-Mobile digging its way out of this predicament anytime soon

T-Mobile isn't ready to do the one thing that customers desperately want.

This article may contain personal views and opinion from the author.
t-mobile growth slows
New T-Mobile customers prefer feature-rich plans. | Image by Andersen Construction
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As T-Mobile moves upmarket, the bargain hunters who flocked to it for lower prices than AT&T and Verizon are getting disillusioned. T-Mobile may still be the cheapest of the three, but it's now the "most premium-skewed carrier," according to wireless plan comparison platform Navi.

Navi's data shows that 53% of T-Mobile shoppers chose the premium tier, outpacing AT&T and Verizon, which both sat in the mid-40s. That tracks with T-Mobile CEO Srini Gopalan's Q2 earnings call, during which he revealed that 60% of new customers selected high-end plans.

But while new customers are reaching for the most feature-rich plans, long-time customers are mourning the loss of cheaper plans.

Consequences



While T-Mobile is embracing a new premium identity, Verizon and AT&T are heading in the opposite direction. T-Mobile's cheapest Essentials Saver 2.0 plan starts at $50, and AT&T and Verizon both undercut it with the $15/month Build-a-Plan and $30/month Simplicity plans, respectively.

Losing that price edge is expected to slow T-Mobile's momentum. We asked our readers what the company could do to get its mojo back. T-Mobile won't like the answer.

Asking too much of T-Mobile


We got 684 responses, of which 441 (65%) wanted lower prices, while 170 (25%) suggested the elimination of unnecessary fees. Only 73 (11%) thought network improvements were the answer.

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Wishful thinking



While former CEO John Legere's consumer-friendly pricing boosted growth, parent company Deutsche Telekom's CEO Timotheus Höttges found it unsustainable.

The recent axing of the budget-friendly Better Value plan only confirms where priorities lie


T-Mobile plans contain more features than offerings from rivals, which is one reason why they are costly.

The company also needs capital for 6G, AI-RAN, and fiber acquisitions, which is apparently why it has been forcing customers to pay more and revoking benefits. 

The road ahead


T-Mobile added more subscribers than AT&T and Verizon for years, but that gap is expected to level off over the next four years. The company has lost its growth streak, and without aggressive pricing, that's not going to change.
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