T-Mobile has unveiled a new phone plan as it grapples with increasing customer losses and intensified competition from rival carriers. In the third quarter of 2025, the company reported a postpaid phone churn rate of 0.89%, a slight increase from the previous year, according to its latest earnings report. This shift comes in the wake of price hikes and alterations to service options that have drawn criticism from customers.
As the wireless market evolves, T-Mobile faces stiff competition from major players like Verizon and AT&T, both of which have launched attractive offers to draw in consumers. In addition, cable companies such as Spectrum and Xfinity have begun enticing customers away from traditional phone services by bundling discounted plans with internet and television services. A recent survey from Oxio indicates that approximately 90% of U.S. consumers are considering alternatives to traditional carriers, with 85% citing cost as a primary factor in their decision-making.
According to Nicolas Girard, CEO of Oxio, “The research shows that many consumers are looking for greater plan clarity and value – they want services that match what they actually use.” Consumers are increasingly prioritizing personalized services and transparency in their mobile plans.
Introducing T-Mobile’s “Better Value” Plan
In response to these market dynamics, T-Mobile has launched its “Better Value” plan, touted as the “most value-packed plan ever.” The plan starts at $140 per month for three lines with autopay, translating to $46 per line, plus taxes and fees. It offers a five-year price-lock guarantee on talk, text, and data, unlimited premium data on T-Mobile’s 5G network, and unlimited hotspot data, which includes 250GB of high-speed hotspot data each month.
Customers will also benefit from unlimited data while abroad, specifically 30GB of high-speed data per month across over 215 countries. The plan includes satellite connectivity with unlimited text and data through satellite-optimized applications. Additional perks encompass free subscriptions to Netflix and Hulu, along with an option for Apple TV at a reduced rate of $3 per month.
T-Mobile claims that families can save over $1,000 when compared to similar offerings from Verizon and AT&T, thanks to these built-in benefits. Existing customers looking to upgrade from their Essentials family plan may also save more than $50 per month by switching to the new plan. Mike Katz, T-Mobile’s Chief Business and Product Officer, emphasized the company’s commitment to delivering value, stating that families are seeking ways to save and maximize their mobile services.
Competitive Landscape and Customer Satisfaction
Current pricing for three lines on unlimited plans from Verizon ranges between $100 and $175, while AT&T charges approximately $138 to $183. Both of these estimates are before taxes and fees, and customers must activate autopay to receive the discount.
T-Mobile’s initiative comes on the heels of its “15 Minutes to Better” campaign, which facilitates quick carrier switching for consumers. The process, available through T-Mobile’s T-Life app or website, allows users to transfer their service from competitors while receiving offers competitive to their current plans.
As of now, T-Mobile holds a 20.8% share of the market, closely following Verizon at 23.8% and AT&T at 19.4%, according to data from market research firm IBISWorld. However, T-Mobile also faces competition from Mobile Virtual Network Operators (MVNOs), which offer attractive pricing and have higher customer satisfaction ratings. A J.D. Power survey placed T-Mobile’s postpaid satisfaction score at 636 out of 1,000, surpassing Verizon’s 583 and AT&T’s 573. In contrast, MVNOs enjoy an average satisfaction score of 641, with Consumer Cellular and Google Fi Wireless scoring 726 and 671, respectively.
The findings from these surveys highlight value as a crucial driver of customer experience, alongside service quality. As T-Mobile continues to adapt to a rapidly changing market, the effectiveness of its new plans and initiatives will be pivotal in retaining its customer base and appealing to new users.
