T-Mobile is restricting access to two wireless promotions following several recent changes affecting customer savings.
Last week, T-Mobile warned customers that it is retiring multiple older phone plans, including Magenta, Simple Choice, and ONE, over the next few weeks.
The change will move customers on those older plans to newer ones, such as those from T-Mobile’s Essentials and Experience wireless plan lineup. Almost half of these customers will see their monthly bill increase by up to $6 as a result of this change.
In addition, the carrier is also axing its KickBack discount on July 13, which it has offered since 2017. The discount lets customers save $10 per wireless line on their account if it uses less than 2GB of mobile data each month.
T-Mobile restricts Keep and Switch and Family Freedom offers
In another new change that impacts customer savings, T-Mobile is limiting its Keep and Switch and Family Freedom promotions.
Keep and Switch, which launched in 2020, helps customers who switch to T-Mobile pay off their remaining device balances with their previous carrier by offering reimbursements of up to $800 per wireless line (max of four) on their T-Mobile account.
Family Freedom, which was introduced in April last year, essentially offers the same as Keep & Switch, except that after T-Mobile pays off the device, customers are required to trade it in for a newer one from the carrier.
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Both offers were made available to customers with new and existing accounts; however, that is no longer the case.
On July 9, T-Mobile officially restricted both promotions to new accounts only, according to a recent update on its website. It is also limiting both offers to accounts that have either T-Satellite or Home Internet.
RTMNexus CEO Dominick Miserandino said in a statement to TheStreet that the change from T-Mobile is “a deliberate play to cross-sell and diversify its customer base into other high-growth products.”
“T-Mobile has poured massive capital into expanding its 5G home broadband and its newer satellite network,” said Miserandino. “By holding its best $800 carrier-switching discounts hostage unless you buy into these secondary services, it is forcing its core wireless business to act as a powerful engine that drives adoption across its entire tech ecosystem.”
Why T-Mobile risks losing more customers
The move from T-Mobile risks pushing more customers to switch to its rivals, especially after it rolled out several price increases over the past few months.
In January, it hiked its Regulatory Programs & Telco Recovery fee, a monthly billing charge customers pay. T-Mobile also started charging $3 per month for its Apple TV “On Us” perk, which had previously been free for customers on Plus-level wireless plans.
In March, it began hitting customers with a $35 Device Connection Charge when they purchase devices directly from Apple. The carrier also quietly increased its restocking fee for device returns.
Most recently, T-Mobile doubled the rate customers pay to make calls outside the U.S., raising it from $0.25 per minute to $0.50 per minute.
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T-Mobile is already struggling to hold on to customers as it faces increased competition not only from AT&T and Verizon but also from cable operators, which are offering discounted rates for wireless service through bundled plans.
Mobile virtual network operators (MVNOs), which offer consumers mobile service at lower prices compared to traditional wireless carriers, are also becoming increasingly popular.
In December, a survey conducted by WhistleOut revealed that 34% of T-Mobile, AT&T, and Verizon customers plan to switch to an MVNO within the next year due to high mobile plan prices.
During an earnings call in April, T-Mobile CEO Srini Gopalan said that the company’s postpaid phone churn, the percentage of customers that ended their postpaid wireless service, climbed by 3 basis points year over year in the first quarter of 2026.
“January was particularly competitive and particularly heavy in one-dimensional competition based on subsidies,” said Gopalan during the call.
Competition in the wireless market is expected to intensify as SpaceX’s Starlink Mobile is reportedly developing its own terrestrial U.S. mobile network, potentially becoming the country’s fourth major carrier.
In a report from Fierce Network in May, Alex Besen, president of The Besen Group, warned that there is “not much” traditional carriers can do if Starlink becomes a major global wireless competitor.
“They have to think how they’re going to remain in business with Starlink in the marketplace,” said Besen.
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