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T-Mobile goes ahead with their rate hikes

T-Mobile is currently executing a major price increase strategy in mid-2026, impacting legacy customers through forced plan migrations and fee hikes.

Forced Plan Migrations (Starting July 13, 2026)​

T-Mobile is automatically migrating over 8 million customers from legacy plans (such as Magenta, ONE, and Simple Choice) to modern Experience plans.

  • Cost Impact: Voice lines may see increases of $4 to $6 per line per month.
  • Other Lines: Watch and tablet lines may increase by $3 per line, while 5G Home Internet lines may see a $6 bump.
  • Justification: The carrier claims older plans cannot access full 5G Advanced capabilities, though customers report misleading notifications regarding included features.

Fee Adjustments (Effective January 21, 2026)​

T-Mobile raised its discretionary "Regulatory Programs and Telecommunications Recovery Fee," which is not a government tax.

  • Voice Lines: Increased from $3.99 to $4.49 per month.
  • Mobile Internet Lines: Increased from $1.60 to $2.10 per month.
  • Exemptions: Customers on older "Tax Inclusive" contracts (like legacy Magenta or One plans) are shielded from this specific fee hike.

Additional Service Hikes​

  • International Calls: Rates for calls made outside the U.S. doubled from $0.25 to $0.50 per minute, effective June 25, 2026.
  • Device Fees: A $35 Device Connection Charge was introduced for direct Apple purchases, and restocking fees rose to $10.
  • Perks: The Apple TV "On Us" perk now costs $3 per month for Plus-level plan holders.

Customer Backlash and Legal Action​

  • Churn: Postpaid phone churn rose to 0.93% in 2025, up from 0.86% in 2024, as customers cite rising costs and reduced loyalty.
  • Lawsuits: A class-action lawsuit filed in July 2024 alleges false advertising regarding "price lock" guarantees. Attorneys are pursuing mass arbitration for plans advertised as having fixed rates that were subsequently increased.
  • Promotions Ending: The ONE plan "Kickback" promo, which offered credits for low data usage, is being discontinued, further increasing effective costs for some users.
 
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