In March, T-Mobile implemented price increases for certain customers on its legacy plans. Despite concerns about potential consumer backlash, CEO Mike Sievert affirmed that the company remained optimistic about customer retention. While T-Mobile did experience a slight uptick in its churn rate—moving from 0.86 percent in Q1 2024 to 0.91 percent in Q1 2025—this rate was still lower than that of competitor Verizon. However, the full impact of the recent price hikes is expected to be clearer in the upcoming Q2 results since the adjustments occurred at the end of the first quarter.
Sievert emphasized that this was T-Mobile’s first such price increase in over ten years, which he believes contributed to customer acceptance. He noted that the company had anticipated the churn rate and attributed the slightly higher figures to broader industry trends affected by current economic conditions. It’s also worth noting that the price hike was implemented in two stages, which may have mitigated the immediate impact on customer satisfaction. The CEO maintained that customers are better positioned than in previous years, stating that users now have access to three times more data and enjoy four times faster speeds compared to five years ago.
This narrative reflects a recent trend among industry leaders, who argue that while customers may be experiencing price increases, the overall value is improving due to additional benefits and services. Many T-Mobile customers continue to choose the carrier despite higher prices, as they may find that alternatives provide little improvement or cost more after the increases. This perspective reinforces the idea that T-Mobile remains competitive in the market, even as it navigates pricing adjustments.