T-Mobile, one of the largest phone carriers in the U.S. with over 130 million customers nationwide, recently experienced a significant boost in profits during the last few months of 2024.
In its fourth-quarter earnings report for 2024, T-Mobile revealed that its net income increased by a whopping 48% year over year.
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The phone carrier also added 903,000 new postpaid phone customers during the quarter and generated total service revenues of $16.9 billion, a 6% year-over-year increase.
Related: T-Mobile ādupedā customers with false advertising, says lawsuit
āIn our storied growth history, 2024 was our greatest growth year ever across multiple metrics, and we finished strong,ā said T-Mobile CEO Mike Sievert during an earnings call on Jan. 29.
T-Mobile contemplates a controversial moveĀ
As T-Mobile faces record growth, Sievert hinted during a recent company all-hands meeting that customers on older phone plans (also known as legacy plans) will soon face price increases, according to a new report from The Mobile Report.
āYouāre going to be hearing about us, for example, getting back to some of the adjustments of legacy pricing that we began last year,ā said Sievert during the meeting.
WASHINGTON, DC – AUGUST 24: A man walks past a T-Mobile store on August 24, 2023 in Washington, DC.Ā
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The move from T-Mobile comes after it increased prices for older phone plans (One, Magenta, and Simple Choice) by $2 or $5 per line last year.
The price increases later attracted a class-action lawsuit from outraged customers who claimed that raising prices violated the price-lock guarantee they were promised when the plans were first introduced.
The price-lock guarantee for these plans is solidified in T-Mobileās Un-contract, which allows customers to dictate what they pay for their service.Ā āWhile your price may go down ā it wonāt go up,ā said T-Mobile in a 2015 press release that announced the contract.
Related: T-Mobile accused of āillegallyā charging customers a hidden fee
āT-Mobile is well aware that its customers are angry at being duped by its false advertising,ā reads the lawsuit filed on July 12, 2024.
T-Mobile customers prepare their escape plan
Sievert’s comments during the recent all-hands meeting comes after he saidĀ during an earnings call on Jan. 29 that the companyās current legacy plan rates are āoutdated.ā
āWe do have an ongoing opportunity to address legacy rate plans across the base,ā said Sievert. āAnd we began a program last year on this. We didn’t complete it ā there’s more opportunity this year. And I want to be clear that anything that we might do in this space, we will do in a way that really honors our brand value proposition that we will be the best value, and that means the lowest prices of the majors in this industry.”
The potential price increases from T-Mobile have already outraged customers, as some took to Reddit to express frustration with the upcoming changes.Ā
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Some customers are even contemplating leaving T-Mobile for another company that is offering lower prices.
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