- It’s not a free pretzel (with purchase) at Auntie Anne’s or a free Slurpee from 7-Eleven, like you might expect on a T-Mobile Tuesday
- Rather, it’s a $1/line fee increase for voice lines and 50 cents/line for data-only lines effective October 12
- BNP Paribas estimates the increase will hit 75% of T-Mobile’s postpaid phone subscribers and all FWA customers
Another Tuesday… another T-Mobile price hike?
It’s not exactly the intended gist behind T-Mobile Tuesdays, but that seems to be the theme today as reports swirl that T-Mobile is hiking its rates once again.
For the record, it's not part of T-Mobile Tuesdays. It actually started yesterday, when T-Mobile began notifying customers that their next bills are going up. Specifically, the increase comes in the “Regulatory Programs & Telco Recovery” category, with fees increasing $1/line for voice (and watch) lines of service and 50 cents/line for data-only (tablets and IoT) lines.
The increase is effective Monday, October 12, according to an email sent to customers.
T-Mobile clarified that since this is a regulatory fee, it doesn’t technically fall into the category of a rate plan price hike. Not that it’s going to alleviate any concerns by customers saddled with another higher bill to pay.
“There’s no change to the cost of our rate plans, including the cost of talk, text and data. We remain focused on delivering fast, reliable service and great value,” the company said in a statement provided to Fierce.
“Like others in the industry, we adjust our Regulatory Programs & Telco Recovery Fee to help offset costs related to services like emergency response systems (E911), local number portability, government mandates and certain network facilities, some of which have increased,” the statement added.
The last time this regulatory fee increased for T-Mobile customers was in January, when it rose by $0.50 to $4.49/month.
In total, the regulatory fee is now at $5.49/month per voice line. For fixed wireless access (FWA), the regulatory fee is going to increase by $0.50 to $2.60 per month, according to BNP Paribas Equity Research senior analyst Sam McHugh.
Earlier this year, T-Mobile migrated about 8 million subscribers on legacy wireless plans to newer price plans, with some seeing an average $4/line increase in prices, he noted.
The trend of increasing regulatory fees is not unique to T-Mobile. AT&T implemented a $1/line increase in August, bringing its fee to $4.99. However, T-Mobile’s latest adjustment moves its rate above AT&T’s level, McHugh said.
T-Mobile fee hikes cover large customer segments
BNP Paribas estimates that 75% of the company’s postpaid phone subscribers have regulatory fees and are affected by this $1/month increase and that 100% of FWA subscribers are affected.
“Overall for the industry, we read this as a positive as the wireless carriers continue to raise prices, which suggests a moderation in wireless competitive intensity,” McHugh said.
“However, we caution that the continued expansion of ‘junk fees’ could negatively impact customer satisfaction over the longer term, although current level fees appear modest,” McHugh said. “This is one of the factors that led to cable’s downfall in our view, as the proliferation of services fees (eg., charging $10/month for Wi-Fi or TV repeater) contributed to low customer satisfaction” and eventually, erosion of the subscriber base.
Changes to T-Mobile perks line-up?
On another side of the T-Mobile house, there could be some changes afoot in the perks department.
Last week, Android Authority reported that a “refreshing change” could be on the way for T-Mobile customers, as new internal codes suggested T-Mobile could be preparing a “pick your perk” offer, with choices ranging from Apple Music to YouTube and Xbox Game Pass.
In a previous report, The Mobile Report speculated that for the first time, T-Mobile might be about to offer music streaming services that aren’t just a limited music trial like those offered via T-Mobile Tuesdays in the past.
T-Mobile declined to comment on these reports, so we’ll have to wait and see what comes of it.
Read more stories about T-Mobile on Fierce Network:
T-Mobile’s 5G ‘refresh’ triggers customer backlash
T-Mobile says older-plan customers need 5G refresh