T-Mobile has avoided rate hikes for older plans for the past few years, but that’s about to change. In a memo to employees obtained by CNET, the company says it will begin sending notices Wednesday to some customers whose rates will increase, starting with June or July bills.
John Freer, president of T-Mobile’s consumer group, sent the memo. The memo doesn’t list which plans are affected, but Freire specifically says that those on the carrier’s latest assortment of Go5G plans won’t see their prices increase. The same goes for the “millions of customers” covered by T-Mobile’s price lock guarantee, which he says will continue to be in effect for those people.
Freire says in the memo that T-Mobile is raising prices on older plans “for the first time in nearly a decade” and that the increases are designed to “keep up with rising inflation and costs.”
It is not known exactly how many people will be affected by this change. The memo says it will affect a “small portion” of T-Mobile’s customers.
Read more: Our picks for the best cell phone plans
The company expects to notify all affected customers on Wednesday. T-Mobile previously tried to move customers from older, usually cheaper plans to some newer, more expensive plans last year. With that move people had the option to call on T-Mobile’s support and push back against the change, a source familiar with the company’s plans tells CNET that option won’t be available with this new rate hike.
People affected by the price hike can call to change their plans to the new T-Mobile offers, but they can’t opt out of the hike. Plans added last year with the trial transfer include T-Mobile’s old One, Simple Choice, Magenta and Magenta 55 Plus options.
The announcement of the price increase has been made as the company’s talk of increasing the price is increasing. Last week, Peter Oswaldik, T-Mobile’s chief financial officer, spoke at the Moffet Nathanson Media and Communications Conference. He indicated that the increase would come. He did not disclose any details then.
Price hike after Sprint merger
As part of its merger with Sprint, which was completed in 2020, T-Mobile is legally required not to raise prices for three years. That period ended last year and the carrier has launched its Go5G range of plans: Go5G, Go5G Plus and Go5G Next. These plans have some new features, but are more expensive than T-Mobile’s previous offerings. The carrier still allows new customers to sign up for older or cheaper plans like Magenta, Magenta Max and Essentials, but some of these plans (ie the Magentas) are buried on its website and require you to call or chat with T. Mobile support if they want to register.
To find Magenta and Magenta Max options today, visit T-Mobile’s plans page, click on “See more available plans” and click on the “Learn more about Magenta and Magenta Max plans” link.
A recent report by Finland-based research firm Reveal found Light readingThe US wireless market has become “one of the most expensive mobile markets in the world” since the T-Mobile/Sprint merger.
While the move is T-Mobile’s first price hike, its competitors have already made several increases to their respective plans over the past two years. AT&T raised rates for its latest plans by 99 cents earlier this year and has made other rate hikes for older plans.
Verizon has raised prices for its plans, after raising rates on some of its older unlimited plans last summer, for those getting its older 5G, do more, play more, and launch plans in February. Last year it also added new fees for other old plans.
Like other price hikes — apparently including T-Mobile’s — Verizon’s most recent move is designed to entice people to switch to its newer, and more expensive, wireless plans.
