T-Mobile's crafty way to charge extra fees and still remain Un-carrier

T-Mobile’s crafty way to charge extra fees and still remain Un-carrier،

T-Mobile is careful to maintain its underdog status among U.S. carriers. Back when it was gaining market share, when it had the flamboyant John Legere as CEO, T Mobile called itself Un-carrier to stand out and didn't miss an opportunity to criticize Verizon or AT&T about their plan prices and 5G network difficulties.

The company was indeed right, as it kept its profit margins very low compared to Big Red and Ma Bell, resulting in both much lower plan prices and faster 5G network expansion. However, under the leadership of CEO Mike Sievert, T Mobile takes matters into its own hands with the Un-carrier brand and its prices have closed the gap with AT&T or Verizon.

T-Mobile vs Verizon vs AT&T plan prices

Still non-carrier

As you can see in the table below, the prices for the basic unlimited plans of T Mobile are still lower than those of Verizon and AT&T, and its family plans with more lines are particularly attractive.

	T-Mobile Essentials	AT&T Value Plus	Verizon Unlimited Welcome
1 line	$50	$50	$65
2 lines	$90	$100	$110
3 lines	$90 (3rd line free, limited time offer)	$115	$120
4 lines	$100 (limited time offer)	$125	$120
5 lines	$125	$155	$150
Strangulation	at >50 GB	n / A	No
Video streaming	South Dakota	South Dakota	South Dakota
Access point per line	3G Speeds	5 GB at full speed	–

*All prices are after autopay and with paperless billing, include unlimited calls and texts in the United States.

However, the difference between plan prices decreases as you add lines. Despite T Mobile has a slight price advantage of about $5 per line per month for a family plan with four lines, those twenty dollars saved wouldn't mean much if it weren't for T Mobile blanket.

For the moment, VerizonThe network is most extensive in rural areas, for example, if it is not covered by 5G. Always, T Mobile's own promotional materials tout its price advantage over Verizon and AT&T.

T-Mobile touts its Un-carrier assets

About these activation fees

T-Mobile Postpaid and Prepaid Takeaway

However, when it comes to clever little ways to continue to be the underdog and non-carrier in users' minds, T Mobile appears to be embarking on a two-pronged strategy. On March 8, for example, T-Mobile reduced the price of device connection fees on new lines from $35 to $5, according to an internal memo.

T-Mobile Device Connection Fee Price Reduction Memo

That's a pretty hefty discount for one of the more annoying phantom fees on a carrier's list, and it's surely appreciated by current and potential users. T Mobile subscribers who would otherwise have been hesitant to pull the trigger.

This, however, is the lucrative market for postpaid plans, which are the bread and butter of operators' revenues once their subscriptions are locked into lengthy phone installment plans that now extend up to 36 months.

When it comes to T MobileWith its own prepaid offering that doesn't require such contracts, the Un-carrier is apparently keen to recoup some of the largesse it demonstrated with postpaid device connection fees.

According to another internal leak noteactivation fees T Mobile Prepaids benefit from an increase. The fee appears to take effect on March 21 and replaces the SIM starter kit with a $25 device connection fee. Furthermore, T Mobile Prepaid will charge an additional $5 fee for refilling at a store. T Mobile even suggests how to explain it to customers:

The Device Connection Fee is a one-time charge to connect a new phone device to the network when activating or upgrading with T-Mobile Prepaid.

New T-Mobile Prepaid Activation Fee Prices

However, when it comes to prepaid mobile plans, T Mobile has one of the biggest brands in the space, and it's not its own prepaid offering. The so-called subway by T Mobile formed after the merger of MetroPCS with Big Magenta, whose network it relies on to provide its services at competitive prices.

T-Mobile vs Verizon vs AT&T Prepaid Plan Prices

	Verizon Prepaid 25GB	AT&T Prepaid 30 GB	T-Mobile Prepaid 50 GB
1 line	$60	$40	$50
2 lines	$90	$80	$80
3 lines	$120	$120	$110
4 lines	$150	$160	$140

*Prices for prepaid plans are after an automatic payment discount, if applicable

Compared to Verizon or AT&T prepaid, T MobileThe offer stands out not only with the lowest price for three lines, but also with the fact that it offers the most data at full 5G speed.

Yet its Metro brand remains extremely popular and is T Mobilethe largest prepaid offer in the country, with more than 20 million subscribers. Its 4-line for $100 deal is also pretty unbeatable, even though those only give 35GB of data at full speed without “prioritization.”

As a result, even if the extra $30 or so T Mobile Prepaid fees may seem very unusual to non-operators, the new prepaid fees are a storm in a teacup. After all, the amount of T Mobile the affected customers would be much smaller than those who would benefit from the 85% reduction in device connection fees for postpaid plans.

Namely, as T Mobile is still everyone's favorite underdog, offering some of the lowest prices and the fastest 5G network nationwide, so the only tangible criterion should be the strength of its signal coverage in the region.