T-Mobile has kept old plans at the same rates for years, but this will change soon. According to a memo obtained by CNET, the company will notify some customers about price increases starting on Wednesday. These higher charges will appear on June or July bills.
The memo, sent by Jon Freier, president of T-Mobile’s consumer group, does not specify which plans will be affected. However, Freier states that the latest Go5G plans will not face price increases. Additionally, “millions of customers” under T-Mobile’s Price Lock guarantee will continue to have their rates unchanged.
In the memo, Freier states that T-Mobile is increasing prices on older plans for the first time in nearly ten years. He explains that the hikes are necessary to “keep up with rising inflation and costs.”
The exact number of people affected by the change is unknown. The memo states that a “small portion” of T-Mobile’s customers will be impacted.
The company plans to notify all affected customers on Wednesday. Last year, T-Mobile attempted to shift customers from older, cheaper plans to newer, pricier ones but withdrew the plan after backlash. Unlike last time, customers won’t have the option to call and contest the new rate hike, according to a source familiar with the plans.
People affected by the price hike can call to switch to newer T-Mobile plans but cannot opt out of the increase. Last year’s attempted migration included older plans like One, Simple Choice, Magenta, and Magenta 55 Plus.
The price hike announcement follows recent discussions about raising prices. Last week, at the MoffettNathanson Media and Communications Conference, T-Mobile’s CFO Peter Osvaldik hinted at an increase. He did not provide details at that time.
Price Increase After Sprint Merger
As part of its merger with Sprint, T-Mobile was required not to raise prices for three years. This period ended last year. Since then, T-Mobile introduced the Go5G plans: Go5G, Go5G Plus, and Go5G Next. These plans have new features but are more expensive than older ones. New customers can still sign up for older plans like Magenta, Magenta Max, and Essentials. However, some plans, like Magenta, are harder to find on the website and may require calling or chatting with T-Mobile support to sign up.
To find the Magenta and Magenta Max options today, you need to go to T-Mobile’s plan page, click “see more available plans,” and then click on the link to “learn more about Magenta and Magenta Max plans.”
A recent report by Finland-based research firm Rewheel, highlighted by Light Reading, found that the US wireless market has become “one of the most expensive mobile markets in the world” since the T-Mobile/Sprint merger.
While this is T-Mobile’s first price hike, its competitors have already raised their rates multiple times in recent years. Earlier this year, AT&T increased rates for its latest plans by 99 cents and has also raised prices for older plans.
Verizon has also raised prices for its plans multiple times. In February, it increased rates for its older 5G Get More, Do More, Play More, and Start plans. Last summer, it raised prices on some older unlimited plans and added new fees for other older plans.
Like other price hikes, including T-Mobile’s, Verizon’s recent increases seem aimed at pushing people to switch to newer, more expensive plans.
What we think?
T-Mobile’s price hike on old plans is disappointing. They kept rates steady for years, but now my bill will increase starting next month. It’s frustrating, especially after their Sprint merger promises. I understand inflation, but it’s still tough. I can’t contest it and must pay more or switch to a newer plan. It feels like they’re pushing us towards higher-priced options, similar to what AT&T and Verizon have done.
