T-Mobile Plans Pricing Overhaul After 962K Q4 Net Adds, 1.02% Churn Rise
In Q4 2025 T-Mobile added 962,000 net postpaid phone customers, missing the 981,330 consensus, while postpaid churn rose to 1.02%, up 13 basis points from Q3. CEO Gopalan announced major pricing optimizations, device subsidy revamps and digital initiatives targeting $3 billion in AI-driven savings by 2027.
1. Q4 Customer Metrics
During Q4 2025 T-Mobile added 962,000 net postpaid phone customers, below the 981,330 expected, while postpaid churn climbed to 1.02%, up 13 basis points from Q3 as competitive deals from rivals intensified.
2. Planned Pricing and Subsidy Changes
CEO Srini Gopalan outlined major pricing optimizations for legacy plans and a revamp of device subsidies, shifting from 24-month bill credits to structures focused on sustained value rather than one-off free-phone promotions.
3. Digital Transformation and Savings Targets
T-Mobile’s shift to its T-Life app for upgrades jumped from 22% to 73% year-over-year, with 39% unassisted interactions, as part of digital and AI initiatives set to generate $3 billion in savings by 2027.