T-Mobile is altering its strategy to address recent customer losses and intensifying competition from rivals. The company reported a postpaid phone churn rate of 0.89% for the third quarter of 2025, a slight increase of 3 basis points from the previous year, according to its latest earnings report. The rise in cancellations follows a series of price hikes and changes to phone plans that sparked customer dissatisfaction. Competing carriers, including Verizon and AT&T, are actively promoting attractive deals to win over consumers, while cable companies like Spectrum and Xfinity are enticing customers with bundled offers.
As consumers face rising monthly bills, many are considering alternatives to traditional phone carriers. A recent survey from Oxio highlighted that approximately 90% of consumers are open to switching providers, with 85% citing cost as a critical factor. The survey also found that 46% of respondents prioritize lower-priced plans, while 33% seek better network coverage.
“The research shows that many consumers are looking for greater plan clarity and value – they want services that match what they actually use,” said Nicolas Girard, CEO of Oxio. “We’re seeing a strong interest in personalization, transparency, and more control over mobile services.”
T-Mobile Introduces New ‘Better Value’ Plan
In response to these trends, T-Mobile has launched its new “Better Value” phone plan, which it claims to be its “most value-packed plan ever.” The plan starts at $140 per month for three lines with autopay, translating to $46 per line for families, plus taxes and fees. Notably, it includes a five-year price-lock guarantee on talk, text, and data, unlimited premium data on T-Mobile’s 5G network, and unlimited hotspot data, comprising 250GB of high-speed hotspot data each month (with speeds reduced to 600 kbps thereafter).
The plan also offers unlimited data abroad, with 30GB of high-speed data per month (reduced to 256 kbps thereafter) in over 215 countries. Additional features include satellite connectivity with unlimited text and data via satellite-optimized apps, as well as complimentary subscriptions to Netflix and Hulu and an Apple TV offer for $3 monthly.
According to T-Mobile, the Better Value plan can save families over $1,000 compared to similar offerings from Verizon and AT&T. Existing customers looking to upgrade from their Essentials family plan can save over $50 monthly by switching to the new plan. “Families are looking for ways to save and get more value from the services they rely on every day, especially wireless,” stated Mike Katz, T-Mobile’s Chief Business and Product Officer.
Heightened Competition and Market Dynamics
T-Mobile’s strategy comes on the heels of its new initiative, “15 Minutes to Better,” which aims to streamline the process for consumers to switch carriers in 15 minutes or less. This transition can be completed through T-Mobile’s T-Life app or website, utilizing the “Easy Switch” tool to match users with competitive offers.
In the competitive landscape of wireless telecommunications, T-Mobile currently holds a 20.8% market share, closely trailing Verizon at 23.8% and AT&T at 19.4%, according to data from market research firm IBISWorld. The company is also facing challenges from Mobile Virtual Network Operators (MVNOs), which lease network capacity and often provide more competitive pricing and higher customer satisfaction, as indicated by a recent survey from J.D. Power.
T-Mobile has a consumer satisfaction score of 636 on a 1,000-point scale, surpassing both Verizon and AT&T, which scored 583 and 573, respectively. However, MVNOs boast an average satisfaction score of 641, with Consumer Cellular achieving a notable 726 and Google Fi Wireless at 671.
“The findings show that value is the most important driver of the overall experience, followed closely by service quality,” remarked Carl Lepper, Senior Director of Technology, Media, and Telecom at J.D. Power.
As T-Mobile navigates a rapidly evolving market, its bold new plan and customer-focused initiatives may prove critical in retaining and attracting customers in an increasingly competitive landscape.
