T-Mobile, one of the top phone carriers in the United States, is changing its strategy as it battles greater customer losses and tougher competition from its growing list of rivals.
During the third quarter of 2025, T-Mobile’s postpaid phone churn rate (the number of customers who cancel their phone service) reached 0.89%, which is 3 basis points higher than the churn it reported for the same quarter last year, according to its latest earnings report.
The loss of loyal customers comes after T-Mobile implemented price increases and phone plan changes during the year, which sparked a backlash. It also comes at a time when the company’s top competitors, Verizon and AT&T, have both been launching free perks and phone deals to lure customers.
Cable companies, such as Spectrum and Xfinity, have also been luring customers away from traditional phone carriers by offering discounted phone plans when combined with TV and internet.
As the wireless market becomes increasingly competitive, more consumers are exploring various options for more affordable phone plans outside of their current provider, especially as they face rising monthly bills, according to a recent survey by Oxio.
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More or less 90% of consumers would consider alternatives to traditional carriers.
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In addition, 85% consider the cost as a primary factor in choosing a mobile phone provider.
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In addition, 46% of consumers rank a low priced plan as theirs main reason to change suppliers, 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 growing trend, T-Mobile has introduced a new phone plan that it claims is its “most value-packed plan,” according to a recent press release.
T-Mobile’s new “Best Value” phone plan starts at $140 a month for three lines with autopay, meaning each line is $46 for families, plus taxes and fees.
The plan also includes a five-year price lock guarantee on talk, text and data. It also includes unlimited premium data on T-Mobile’s 5G network and unlimited hotspot data, which includes 250GB of high-speed hotspot data per month (600 kbps thereafter).
Customers will also have unlimited data abroad, specifically 30GB of high-speed data per month (256 kbps later) in more than 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 taxes and fees), and two-year device upgrades.
T-Mobile stated that the 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 stated that existing T-Mobile customers looking to upgrade from their Essentials family plan with three or more lines can save more than $50 a month on 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,” said Mike Katz, T-Mobile’s chief business and product officer, 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 about $100 to $175 a 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 households roughly $138 to $183 a month, depending on the plan level, for three lines on its unlimited plans. These prices are also before taxes and fees, and with the monthly autopay discount activated.
The move by T-Mobile follows its launch of a new initiative last month called “15 minutes to the best”, which ensures that consumers can switch phone carriers in 15 minutes or less.
The switching process is completed either through the T-Life app or T-Mobile’s website, where consumers can sign up for their current plan from a rival phone carrier using the company’s “Easy Switch” tool, which will match them with a competitive T-Mobile offer.
T-Mobile has been stepping up its game to compete with Verizon and AT&T, as they are all nearly neck and neck in terms of market share in the wireless telecommunications industry.
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Currently, T-Mobile owns 20.8% of the market share in the industry, while Verizon owns 23.8% and AT&T has 19.4%, according to data from market research company IBISWorld, which was shared with TheStreet.
T-Mobile has also been facing the growing threat of Mobile Virtual Network Operators (MVNOs). These wireless providers rent network capacity, offering more competitive prices to consumers, compared to traditional phone carriers, and have higher satisfaction rates, according to a recent survey by JD Power.
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T-Mobile has a customer satisfaction score gave 636 (on a 1,000-point scale) for its postpaid plans, beating out Verizon and AT&T, which have scores of 583 and 573, respectively.
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However, MVNOs have an average satisfaction score of 641.
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Specifically, Consumer Cellular has a score of 726while Google In Wireless has a score of 671.
Source: JD Power
“The findings show that value is the most important driver of overall experience, followed closely by service quality,” said Carl Lepper, senior director of technology, media and telecommunications at JD Power, 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 Preferred Source by clicking here.