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Don't quit T-Mobile just yet

T-Mobile customers won't necessarily be better off switching.

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Anam Hamid
By · Senior News and Deals Writer
This article may contain personal views and opinion from the author.
t-mobile plan migration price hike
T-Mobile isn't the only one to raise prices this year. | Image by JPC Architects
Every time T-Mobile does something unfavorable, its subscribers swear that they'll leave if the carrier doesn't mend its ways. Most of them never follow through on the threat, as is evident by T-Mobile's enviably low churn rate. Either the carrier is doing more good than bad, or it has mastered the art of trapping subscribers.

Subscribers who are thinking of jumping ship after the recent plan migrations and the resulting price hikes that take effect on July 13 should take a breather and decide rationally.

From underdog to overdog


The Un-carrier policies rolled out during former CEO John Legere's days were designed to catapult T-Mobile to exactly where it is today. Granted, it bordered on unethical by making promises it couldn't keep, but forever price locks and Kickback discounts were never going to be sustainable.

As the carrier has risen through the ranks, so have the expectations. It must maintain its 5G dominance, which, admittedly, is slipping from its grasp as rivals catch up. To stay at the forefront of technology, it needs to plow in capital. Sustaining financially draining practices could cost the company its network leadership.

Not the only one



AT&T raised prices for customers on legacy plans by at least $10 in April. Verizon hiked the fee on its Unlimited Ultimate plan by $5 in May, albeit only for new customers.

T-Mobile is the last of the Big Three to raise prices. With potentially 8 million customers impacted, the backlash has been fierce.

But the truth is, T-Mobile tends to receive more flak, probably because AT&T and Verizon are viewed as premium carriers, while T-Mobile historically isn't.

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The move also calls into question T-Mobile's marketing lingo, which loves to paint a picture of being customer-centric.

Competition letting up


The price increase may be viewed as another sign of a telecom oligopoly, but that's a simplistic take. Recall the intense competition during the holiday season, when even Verizon announced deals deemed financially impractical. Those fat subsidies were gradually pulled as an initial sign of competition cooling off. The price hikes from the Big Three reaffirm that.

As for T-Mobile, BNP Paribas expects the price hike to contribute between $75 million and $200 million to its revenue, a paltry 0.1% to 0.3% of its 2025 revenue.

In short, T-Mobile isn't profiting nearly as much as affected customers imagined. On the other hand, if those customers switch, they might lose more than they think they will.

How do you handle carrier price hikes?
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Xfinity shooting its shot



This is an opportune time for rivals, including Mobile Virtual Network Operators (MVNOs), to siphon away T-Mobile's customers. Xfinity is wasting no time, already promising a year of free service to subscribers who switch over. There are no contracts, and you are free to walk away whenever you like. Sounds too good to be true, right? That's because it sort of is.

First of all, Xfinity's mobile service is available only to those who also subscribe to its internet offering, which starts at $45 per month.

That aside, Xfinity is a budget carrier that leases network capacity from Verizon. This means you shouldn't expect the same level of service and perks you would get from a facilities-based carrier like T-Mobile.

Besides, once that first year is up, not only will you be paying $30 a month for the phone plan, but you likely won't get any more deals. Carriers in general and Xfinity in particular reserve their best deals for new customers.

Informed decision


At the risk of sounding a little philosophical, no decisions in life are permanent. If you aren't satisfied with your carrier, you should absolutely evaluate your options.

At the same time, if you are happy with your current provider and deem its service to be worth the hike, you might want to stay put rather than punishing the carrier only to migrate to one you might regret even more.
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