T-Mobile is reportedly preparing to unveil a new loyalty plan to combat a significant customer exodus that has raised concerns within the company. Following hints that many customers are leaving, the carrier appears to have shifted gears from initial indifference towards its churn rate—the percentage of customers who abandon their service. To address this issue and retain more subscribers, T-Mobile is expected to announce a revamped loyalty plan in the coming week.
The forthcoming loyalty plan will reportedly serve as an enhancement to the existing Essentials plan. It is anticipated to be more budget-friendly while including all the benefits of the standard plan, plus some added incentives. This new offering bears similarities to AT&T’s Starter plan, indicating that AT&T could be a growing competitive threat in the market.
Pricing details suggest the plan will be available for $65 monthly for one line, and $120 for two lines, with additional lines costing $12 each. Notably, for families needing multiple lines, this new plan may actually offer less value than the current Essentials plan, which features a promotion allowing for four lines at $100 per month. However, the proposed loyalty plan will come with several restrictions.
It will not qualify for certain promotions, such as third free lines or BOGO offers, which are not typically available on the standard Essentials plan either. This could leave customers currently benefiting from various perks on older, more expensive plans feeling confused about the transition. The new plan will also limit customers to eight lines maximum.
An important incentive of the loyalty plan may be higher trade-in values, which could attract users dissatisfied with their current upgrade options. While existing account promotions will transfer unchanged, the new plan is expected to exclude taxes and fees. T-Mobile has not introduced new plans often, suggesting that this might be a strategic effort to appease customers unhappy with recent price increases and changes to their service offerings.