T-Mobile Q4 Postpaid Adds Fall Short, Churn Rises 13 bps; $3B Savings
T-Mobile added 962,000 postpaid phone customers in Q4 2025, missing expectations of 981,330, as postpaid churn rose to 1.02%, up 13 basis points from Q3. CEO Srini Gopalan plans to overhaul device subsidies and adjust legacy rate plans while boosting T-Life app usage to secure $3 billion in savings by 2027.
1. Q4 Subscriber Growth Misses Expectations
T-Mobile added 962,000 net postpaid phone subscribers in Q4 2025, below the 981,330 estimate, while postpaid churn climbed to 1.02%, a 13 basis-point increase from the prior quarter as competitors launched aggressive trade-in and multi-line deals.
2. Planned Device Subsidy and Rate Plan Revisions
CEO Srini Gopalan signaled a re-evaluation of 24-month bill credit subsidies and targeted rate plan optimizations for legacy customers, aiming to maintain competitive handset pricing while improving long-term service margins.
3. Digital Push Targets Efficiency and Savings
Usage of the T-Life app for upgrades has jumped from 22% to 73% with 39% unassisted activity, feeding into a broader AI and digital strategy expected to generate $3 billion in cost savings by 2027.