Is T-Mobile's Latest Move Enough to Stop Customer Defections?

T-Mobile is making some moves to keep its existing customers happy, and starting February 5th, the carrier is launching two new plan options. But before you get excited, there's a catch: these plans come with some real trade-offs that might not work for everyone.

The carrier is introducing the "Experience More with Appreciation Savings" plan and the "Loyalty Plan" to give customers more pricing flexibility. According to The Mobile Report, T-Mobile is taking a different approach to compete in an increasingly crowded mobile market.

The first option, Experience More with Appreciation Savings, sounds like a winner on the surface. A single line costs $75 per month, or you can get two lines for $120. If you have a larger family, lines three through eight add just $30 each, and lines nine through twelve add $40 each. The catch? You'll get lower trade-in credits when upgrading your phone compared to the regular Experience More plan. 

If you're someone who upgrades phones frequently, this could cost you hundreds in lost trade-in value over time. For example, if you wanted to take advantage of T-Mobile's current iPhone trade-in offer, you'd get $630 instead of $830; a difference of about $8 per month. Do the math on multiple phone upgrades, and this plan starts looking expensive.

The second option is the Loyalty Plan, which is essentially T-Mobile's way of saying "please don't leave." At $65 for one line or $120 for two lines, it seems affordable. The real savings kick in for families—lines three through eight only cost $12 each per month. 

But here's where things get rough. You're limited to 50GB of high-speed data instead of unlimited, your hotspot slows down to 3G speeds, and you lose perks like Netflix and Apple TV that come with higher-tier plans. You also won't get the five-year price guarantee that protects other customers from rate hikes. This plan is designed for people with large family plans who are seriously considering switching to another carrier and need a reason to stay.

The real question is whether either plan is compelling enough to stop T-Mobile customers from exploring other options. For most people, these plans require giving up something meaningful to save money—and that's exactly what carriers are banking on.

Source: The Mobile Report