T-Mobile launches free offer for customers after major loss

T-Mobile is betting big on the holiday season to boost its wireless customer numbers after facing controversy earlier this year for hiking prices, cutting discounts, and changing its phone plans.In recent weeks, T-Mobile has made concerted efforts to lure customers away from its competitors. On Dec. 1, it officially launched its “15 Minutes to Better” initiative, which aims to ensure that consumers can switch to T-Mobile from rival phone carriers in 15 minutes or less, following its initial announcement on Nov. 20.The switching process is completed through T-Mobile’s T-Life app, where consumers can sign in to their current phone plan from a rival phone carrier and select an option called “Easy Switch,” which will match them with a competitive T-Mobile offer.A few days after the initiative launched, customers also noticed that T-Mobile had quietly extended its monthly payment plans from 24 months to 36 months for some of its phones, tablets, and wearable devices. That offer, which aimed to attract new customers seeking lower monthly payments for new devices, is no longer available on T-Mobile’s website. T-Mobile is ramping up its efforts to attract customers.Shuttershock/Helen89 T-Mobile rolls out a new free phone offerHowever, T-Mobile has now launched a new bold deal to sway consumers from rivals. For a limited time, the phone carrier is now offering new customers the iPhone 17 256GB model for free, just in time for Christmas. The offer is only available to new T-Mobile customers bringing an existing phone number from an eligible carrier. Also, customers would need to sign up for T-Mobile’s Experience Beyond or Go5G Next plans and purchase the phone on an installment plan. Over a period of 24 months, customers will receive $830 in bill credits, which will cover the full price of the phone. Customers should be aware that they will incur a one-time activation fee of $35, plus applicable taxes.Related: T-Mobile quietly makes drastic decision after losing customersThe move from T-Mobile comes after Verizon and AT&T have also launched bold iPhone 17 deals for the holidays. Verizon is offering four iPhone 17 Pros “on us,” along with four lines for $25 a month each, no trade-in required. AT&T is also offering the iPhone 17 Pro for free, but it requires a trade-in of an iPhone 14 Pro Max or higher.While these free phone deals appear generous, Americans nationwide have been misled by "free" phone offers and unlimited data plans that phone carriers often tout, putting strain on consumer wallets, according to a recent survey from Consumer Cellular.How many Americans are misled by “free” phone offers:Approximately 27% of U.S. adults accepted a "free" or "on us" phone offer without understanding its terms or the commitment required.Also, 90% of wireless consumers believe most people do not understand the actual cost or contract terms behind these "free" phone promotions.Additionally, 79% of mobile consumers aged 50 and older have unlimited plans or use less data than their plan allows, indicating a possible overpayment for unused data. Source: Consumer Cellular "'Free' isn't free, and 'unlimited' rarely means what people think it does," said Consumer Cellular CEO Ed Evans in a press release. "Our research and our own customer data both show that tens of millions of Americans are almost certainly overpaying for data they don't use or phones that aren't really free. Carriers need to make it easier for people to understand what they're truly paying for and how to right-size their plan."T-Mobile is losing loyal customersT-Mobile’s increased promotions aimed at new customers come after its postpaid phone churn (the number of customers who canceled their phone service) increased by 3 basis points year over year during the third quarter of this year, according to its latest earnings report.The increased loss of customers comes after T-Mobile raised monthly prices for some of its older phone plans by $5 in April and hiked its monthly Regulatory Programs & Telco Recovery Fee.

More Telecom News:T-Mobile announces free offer for Verizon and AT&T customers​​Verizon CEO sounds alarm on why customers are leaving in drovesSpectrum raises red flag on cause of fleeing customer problemIt also officially retired its Go5G plans in June and started removing taxes and fees from plan pricing. More consumers nationwide are considering switching phone providers due to heightened price sensitivity and a desire for personalized services.Why U.S. consumers switch phone providers: Approximately 90% of consumers would consider alternatives to traditional carriers.Roughly 85% consider cost to be a primary factor in mobile provider selection.Additionally, approximately 46% rank a lower-priced plan as their primary reason for switching providers, while 33% prioritize better network coverage. Source: Oxio “Our research exposes a significant gap between what U.S. consumers want from their mobile services and what traditional carriers currently offer,” said Oxio CEO Nicolas Girard in a press release. “While connectivity itself remains essential, consumers are increasingly drawn to new possibilities in how these services could be delivered and experienced.”New T-Mobile CEO Srini Gopalan has been adamant about addressing the company’s loss of customers by making their experience more seamless through the digitalization of services. “The amount of friction and frustration we cause customers today because of our processes and the state of evolution in this industry is phenomenal,” said Gopalan during an earnings call in October. “We have a huge opportunity to change that with our digital transformation.”Related: AT&T cuts controversial policy to seal billion-dollar acquisition