T-Mobile is set to raise prices on older plans for the first time in nearly a decade, citing the need to keep up with rising inflation and costs. The rate increase will affect a small portion of customers, with voice lines going up by $5 and connected devices by $2 per month. Customers on T-Mobile’s newer Go5G plans and those covered by the Price Lock guarantee will not see price hikes. The company is not changing any other aspects of impacted customers’ plans, and they will not be able to opt out of the increase.
In response to backlash from a previous attempt to move customers to newer, pricier plans, T-Mobile is not offering affected customers the option to push back against the rate hike. However, customers can call to change their plans to newer offerings, but they will not be able to avoid the increase. Customers on older plans such as One, Simple Choice, Magenta, and Magenta 55 Plus options are among those who have reported receiving notifications of price increases. The announcement of the price hike follows hints from the company’s Chief Financial Officer Peter Osvaldik at a conference that an increase was coming.
The price hike comes after T-Mobile’s completion of its merger with Sprint, which legally required the carrier not to raise prices for three years. With the expiration of that period, T-Mobile has introduced its Go5G plans, which are pricier than its older offerings. The US wireless market has become one of the most expensive in the world since the merger, according to a report by a Finland-based research firm. In contrast to T-Mobile’s first price hike, its rivals AT&T and Verizon have made multiple increases to their plans in recent years, with Verizon pushing customers to switch to newer, more expensive plans.
Customers affected by the price hike will see changes on their June or July bills, depending on when their billing cycle falls. Those with free lines from T-Mobile will not see increases on those lines, and the carrier is not changing any other aspects of customers’ plans aside from the price increase. While T-Mobile still allows new customers to sign up for older or cheaper plans, some of these options are buried on its website, requiring customers to call or chat with T-Mobile support to access them. The price hike is part of a strategy to keep up with inflation and costs, as well as to push customers towards newer, more expensive plans.
