T-Mobile exec hints users will have a good rest of the year
T-Mobile says it's done with rate plan optimizations.
T-Mobile customers have been through a lot over the last year, but there will probably be no more surprises this year.
T-Mobilestarted raising prices on some older plans last year, and that exercise continued into this year. The company also hiked rates indirectly and stopped including taxes and fees in the prices for its latest plans.
In April, the company hinted that it would pass on any tariff-induced surcharges to customers. Customers need not worry about any price spikes in the near future, though.
When discussing second-quarter results, T-Mobile's executive vice president and chief financial officer, Peter Osvaldik, said that the company was done with rate plan optimizations. The company revealed that a lot of customers left during Q2 due to rate jumps, but since no more price increases are planned for the year, churn rate is expected to come down in Q3 compared to levels seen in Q2.
The churn rate will remain elevated relative to last year, though all in all, it's looking good for the company, with Osvaldik saying the carrier is through the worst of it.
The exec also hinted that customers are increasingly choosing its premium-tier plans. That's because not only do they pack a lot of value, but T-Mobile also claims to have the best network in the US, though that has been disputed by its rivals.
CEO Mike Sievert expanded on that by saying that 60 percent of the new customers are going for premium plans. This can partially be attributed to T-Satellite, the company's Starlink-powered texting feature that's available for free with pricier plans.
On top of that, even existing customers are moving up tiers, switching from high-end plans to even more premium ones because of the perks included with them. The company says that the Experience Beyond plans are twice as popular as the Go5G Next plans were a year ago.
Contrary to what online chatter will have you believe, T-Mobile and its customers both seem to be in a good place. The company added 830,000 new monthly postpaid subscribers in Q2, and its revenue rose nearly 7 percent.
Judging by what the company revealed during the earnings call, it looks like many existing customers are prepared to pay more, indicating that they are largely satisfied with the company's services.
T-Mobilestarted raising prices on some older plans last year, and that exercise continued into this year. The company also hiked rates indirectly and stopped including taxes and fees in the prices for its latest plans.
When discussing second-quarter results, T-Mobile's executive vice president and chief financial officer, Peter Osvaldik, said that the company was done with rate plan optimizations. The company revealed that a lot of customers left during Q2 due to rate jumps, but since no more price increases are planned for the year, churn rate is expected to come down in Q3 compared to levels seen in Q2.
The churn rate will remain elevated relative to last year, though all in all, it's looking good for the company, with Osvaldik saying the carrier is through the worst of it.
...we anticipated Q2 to be up. Given the finalization of our rate plan optimizations. What we're anticipating going forward I think about Q3, sequentially, we anticipated being down. And year over year, probably flat to potentially slightly up, but we're through that heightened area of churn for us.
—Peter Osvaldik, T-Mobile executive vice president and chief financial officer, July 2025
CEO Mike Sievert expanded on that by saying that 60 percent of the new customers are going for premium plans. This can partially be attributed to T-Satellite, the company's Starlink-powered texting feature that's available for free with pricier plans.
We've been talking about the sixty percent of our loading being in these premium tiers.
So people are moving up even within premium to more premium because they want more of what T-Mobile US has to offer.
—Mike Sievert, T-Mobile's CEO, July 2025
Contrary to what online chatter will have you believe, T-Mobile and its customers both seem to be in a good place. The company added 830,000 new monthly postpaid subscribers in Q2, and its revenue rose nearly 7 percent.
Judging by what the company revealed during the earnings call, it looks like many existing customers are prepared to pay more, indicating that they are largely satisfied with the company's services.
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