T-Mobile Hints Price Hikes for Older Phone Plans
T-Mobile had a great end to 2024, but some customers with older phone plans might see their bills go up. Here's what you need to know.
Recently, T-Mobile highlighted some big wins from its latest Q4 2024 earnings. With a whopping 48% year-over-year increase in net income, the telecom giant also added 903,000 new postpaid phone customers, showcasing strong growth in its subscriber base.
To round things up, total service revenues also saw a 6% increase, reaching $16.9 billion, solidifying a year of incredible growth for T-Mobile. CEO Mike Sievert emphasized the company's "greatest growth year ever" across multiple metrics.
However, alongside this growth, T-Mobile customers on legacy plans, such as One, Magenta, and Simple Choice, are facing potential price hikes.
According to an article by The Street, this follows previous increases of $2 to $5 per line, which led to a class-action lawsuit alleging a breach of the "price-lock guarantee" promised in T-Mobile's Un-contract.
The Un-contract, launched in 2015, assured customers that "while your price may go down − it won’t go up." This promise is now being questioned, with customers accusing T-Mobile of "false advertising."
Mike Sievert defended the potential adjustments by stating that these legacy plan rates are "outdated," and T-Mobile aims to maintain its position as the "best value" provider in the competitive mobile market.
"We do have an ongoing opportunity to address legacy rate plans across the base," Sievert stated during an earnings call, indicating that further adjustments are likely. While T-Mobile promises to remain the lowest-priced major carrier, the mere mention of price increases has ignited customer frustration.
Customers voiced their opinions and concerns on online forums like Reddit, with some even threatening to switch to competitors offering more stable pricing. This situation will definitely present a challenge for T-Mobile, as it considers future growth, customer satisfaction and retention.
Source: The Street
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