T-Mobile, one of the largest U.S. phone carriers, is changing its strategy to combat growing customer churn and fierce competition from a growing list of rivals.
According to its latest financial report, T-Mobile’s postpaid phone churn rate (the number of customers who canceled phone service) reached 0.89% in the third quarter of 2025, which was 3 basis points higher than the churn rate reported in the same period last year.
T-Mobile has implemented price increases and cell phone plan changes throughout the year, sparking a backlash that has resulted in the loss of loyal customers. Meanwhile, the company’s main rivals, Verizon and AT&T, have launched free perks and phone deals to attract customers.
Cable companies such as Spectrum and Xfinity are also courting customers from traditional phone carriers by offering discounted phone plans bundled with TV and Internet.
As the wireless market becomes increasingly competitive, more consumers are exploring a variety of more affordable cell phone plan options outside of their current providers, especially as they deal with rising monthly bills, according to a recent Oxio survey.
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About 90% of consumers will Consider alternatives to traditional operators.
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also, 85% Think of costs as main factors When choosing a mobile provider.
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also, 46% of consumers ranked low price plan as their main reason For changing providers, 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 are seeing strong interest in personalization, transparency and more control over mobile services.”
T-Mobile has seen an increase in the number of phone customers terminating service.Helen89/Shutterstock
Amid this growing trend, T-Mobile is launching a new cell phone plan that it says is its “best value ever,” according to a recent press release.
T-Mobile’s new “Better Value” phone plans start at $140 per month for 3 lines with autopay, which means each line is $46 for a family, plus tax.
The plan also includes a five-year price lock guarantee on calls, texts and data. It also comes with unlimited premium data and unlimited hotspot data on T-Mobile’s 5G network, which includes 250GB of high-speed hotspot data per month (600 kbps thereafter).
Customers also get unlimited data abroad, notably 30GB of high-speed data per month (256 kbps thereafter) in over 215 countries and destinations. Satellite connectivity also includes unlimited text and data via satellite-optimized apps.
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Some of the perks that come with the plan include free subscriptions to Netflix and Hulu, and Apple TV for $3 per month. It also offers home internet backup for an extra $10 per month, with automatic payments (plus tax) and two years of device upgrades.
T-Mobile says its Better Value plan will save families more than $1,000 compared to similar plans from AT&T and Verizon because of these “intrinsic benefits.” It also said existing T-Mobile customers looking to upgrade from an Essentials family plan with three or more lines can save more than $50 per month in benefits by switching to its Better Value plan.
“Families are looking for ways to save money and get more value from the services they rely on every day, especially wireless services,” T-Mobile chief business and product officer Mike Katz said in a press release. “While AT&T and Verizon continue to ask people to spend more and spend less, we are doing the opposite.”
Currently, Verizon charges customers about $100 to $175 per month for 3 lines on its unlimited plans, depending on the plan tier (with autopay activated and not including taxes). They also come with a three-year price lock guarantee.
AT&T charges households about $138 to $183 per month, depending on the plan level, for three lines on its unlimited plans. These prices are also before tax and with the monthly autopay discount activated.
T-Mobile last month launched a new initiative called “15 Minutes to Better” that ensures consumers can switch phone carriers in 15 minutes or less.
The switching process is done through T-Mobile’s T-Life app or website, and consumers can sign into their current plan from a competing phone carrier using the company’s “Easy Switch” tool, which will provide them with competitive T-Mobile deals.
T-Mobile has been stepping up competition with Verizon and AT&T as they are nearly neck-and-neck in terms of market share in the wireless telecommunications industry.
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T-Mobile currently has 20.8% of the industry’s market share, Verizon has 23.8% and AT&T has 19.4%, according to data shared with TheStreet by market research firm IBISWorld.
T-Mobile also faces a growing threat from mobile virtual network operators (MVNOs). A recent JD Power survey showed that these wireless providers, which lease network capacity, offer consumers more competitive prices and are more satisfied than traditional phone carriers.
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T-Mobile has one consumer satisfaction score of Chapter 636 (on a 1,000-point scale) Its postpaid plans outperform Verizon and AT&T, which scored Chapter 583 Chapter 573 respectively.
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However, virtual network operator The average satisfaction score is Chapter 641.
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Specifically, consumer mobile phone The score is Chapter 726although Google Fi wireless The score is Chapter 671.
Source: JD Power
“The survey results show that value is the most important driver of the overall experience, followed by service quality,” Carl Lepper, senior director of technology, media and telecommunications at JD Power, said in a press release.
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This article was originally published by TheStreet on January 10, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.
