T-Mobile has introduced a significant restructuring of its consumer mobile plans after reporting a loss of 1.2 million subscribers in Q4 2025, marking its first quarterly decline in over five years. The move underscores a strategic pivot amid intensifying competition from Verizon and AT&T.
- T-Mobile lost 1.2 million subscribers in Q4 2025, its first quarterly decline since 2020
- New base Unlimited plan priced at $85/month, down from $95
- Family plan now offers two lines for $125/month, a 15% reduction
- Equipment installment fees eliminated for new customers
- Average revenue per user (ARPU) fell to $64.20 in Q4 2025
- Competitors Verizon (VZ) and AT&T (T) are preparing competitive responses
T-Mobile has rolled out a sweeping revision to its flagship phone plans, introducing a new tiered pricing structure aimed at reversing recent subscriber losses. The company reported a net loss of 1.2 million customers in the fourth quarter of 2025—the first such decline since 2020—prompting the overhaul. The new plans feature a base Unlimited plan priced at $85 per month, down from $95, with added perks including free streaming subscriptions and expanded international data allowances. The restructuring also includes a refreshed family plan offering two lines for $125 monthly, a 15% reduction from the previous tier, and the elimination of equipment installment fees for new customers. These changes directly target price-sensitive consumers and aim to improve retention, particularly among younger demographics who have shown increased mobility across carriers. The adjustments follow a broader market shift, with Verizon (VZ) and AT&T (T) maintaining stable subscriber counts while increasing data caps and bundling services. Analysts note that T-Mobile’s Q4 performance reflects growing competitive pressure and rising churn, particularly in the mid-tier market. The company’s adjusted EBITDA declined by 3.7% year-over-year, and its average revenue per user (ARPU) dropped to $64.20, down from $67.80 in Q3 2025. Despite the plan changes, T-Mobile’s stock (TMUS) dipped 2.1% in after-hours trading, indicating investor caution over near-term profitability trade-offs. The revised offerings are expected to impact the broader wireless ecosystem. Verizon and AT&T are preparing counter-measures, with AT&T reportedly testing a $75 unlimited plan for new customers in select markets. The move could trigger a pricing war in the U.S. wireless sector, potentially influencing future capex decisions and M&A activity among telecom firms.