Update 5/22/24: We now have confirmation of the changes. See our other article for details.
There’s something in the air at T-Mobile, and it’s not good.
Before we continue, this article is entirely speculative at this point, and all speculations are based on word-of-mouth rumors, so please do not take anything here as fact. That being said, we expect the facts to come out within the next 24-48 hours.
The main focus of this article is to discuss what we expect is happening: moderate price increases to legacy postpaid plans and customers.
What’s happening
As of Monday, May 20th, there have been multiple signs of a big change coming to T-Mobile customers.
First, employees at stores across the country, as well as customer support, have apparently been told to increase staffing through Friday. The company is even approving full overtime for some of these locations. We consider this to be highly likely in terms of accuracy (3+ sources).
Second, we’ve heard that customer support was recently retrained specifically on customer retention. This would indicate that T-Mobile soon expects a high volume of customers calling in to cancel services. We consider this to be highly likely accurate as well (3+ sources).
Next, we’re told that in all locations, a Store Manager (or higher rank) must be present for a full 8 hours each day through Friday. Managers aren’t necessarily required for account management, but it’s likely this is for there to be someone in store to handle an influx of angry customers. We consider this moderately likely (two sources).
What could this mean?
We believe there are two possibilities.
The first, and most likely possibility, is that legacy plans for existing customers are getting a price increase. This was expected to happen at some point, and bolstered by vague statements by Peter Osvaldik, the executive vice president and chief financial officer at T-Mobile, made during a Media, Internet, and Communications Conference. The relevant segment is embedded below.
As for how much of an increase there will be, or which plans will be affected, no one yet knows. T-Mobile could take many different paths here. They could target Simple Choice and older plans, as they are the oldest plans still widely in use. They might also target ONE plans, or Magenta. We really have no idea at the moment.
Option 2 is less severe, but also less likely. The second possibility is that the previously mentioned Home Internet geofencing enforcement could be going live. This was speculated by a few we spoke with, but we find it unlikely this is the reason for the sudden secrecy and staff reinforcements. At this point, we can only hope for such luck.
What you can do
Most modern plans from T-Mobile are covered by some kind of protection from price increases. As far back as Simple Choice, customers are covered by either the Uncontract Promise or one of two versions of Price Lock.
All of these protections are similar. At the very least, covered plans will be allowed to leave T-Mobile if a price increase occurs, and T-Mobile will cover the final month’s bill for you. At the very least, this means you won’t be forced to pay the new prices, but you’d still have to go through the hassle of finding a new carrier and porting your numbers.
Final thoughts
No matter how T-Mobile implements this (probable yet unconfirmed) price increase, it’s sure to cause a massive uproar. Back in the John Legere days, Price Lock was a major reason many new customers joined the company, being promised that, no matter what, your prices will never go up without you changing your plan. Unfortunately the fine print isn’t quite as clear.
For what it’s worth, CEO Mike Sievert sold 40,000 shares of T-Mobile stock just one week ago. We’ll leave you to speculate further on that.
We here at The Mobile Report will be keeping a close eye on things over the next few days and we’ll be sure to share as soon as we know more. Follow us on Twitter or join our Discord if you’d like immediate notice of new news.
Will you leave T-Mobile if they implement a price increase? What’s the most amount you’d be willing to pay to stay? Share your thoughts below.
