T-Mobile’s Latest Fee Increase Has Customers Ready to Switch

T-Mobile just raised one of its monthly fees again, and customer frustration is at an all-time high. Nearly seven out of every ten T-Mobile customers say they’re thinking about jumping ship to another carrier, according to a recent poll.
The company increased what’s called the Regulatory Programs & Telco Recovery Fee by 50 cents for voice and data lines earlier this month. This brings the charge to $4.49 per voice line and $2.10 for mobile internet customers. According to PhoneArena, T-Mobile has raised this particular fee numerous times since first introducing it back in 2004, with the previous bump happening just last April.
Here’s the thing that’s frustrating customers the most: while T-Mobile isn’t changing the advertised prices you see advertised, these extra fees mean your actual bill goes up every single month. The fee itself isn’t mandated by the government—it’s something T-Mobile created to cover its operational and compliance costs. But that doesn’t make the bill shock any less real when it shows up on your statement.
The numbers tell the story of customer discontent. Out of 1,372 people polled, 929 customers (68 percent) said they’re seriously considering leaving T-Mobile. Even more concerning for the company, 233 people (17 percent) said this latest increase crossed the line: it’s the final straw that would push them to switch. Only 210 customers (15 percent) said they weren’t bothered by the change and planned to stay.
Customers are drawing comparisons to Verizon, T-Mobile’s biggest competitor. Many say T-Mobile is now doing exactly what Verizon did for years: keep raising prices until customers couldn’t take it anymore. Verizon eventually had to pump the brakes when too many people started leaving. Some worry T-Mobile is heading down that same path.
Adding fuel to the fire, T-Mobile also raised rates on its Protection 360 service at the same time. And here’s another frustration: T-Mobile advertises a five-year price guarantee, but because taxes and fees aren’t locked in under that guarantee, customers are technically paying more despite the company’s promise.
The irony is that despite all this anger online, T-Mobile isn’t actually losing customers at the rate you might expect. The company still has better customer retention numbers than AT&T and Verizon, and it continues to attract more new customers than its competitors. T-Mobile also scores higher than rivals on network quality and connectivity tests. So when the initial anger dies down and customers start thinking practically about their options, most will probably stick around; but the company is playing with fire by pushing loyal customers harder and harder.
Source: PhoneArena