T-Mobile Unveils $46 Better Value Plan and Free Galaxy S26 Ultra to Cut 1.02% Churn
Postpaid churn rose to 1.02% in Q4 from 0.89% in Q3 after early 2025 bill hikes and shorter device contracts. T-Mobile has introduced new device promotions—including a $46 Better Value plan, free iPhone 17 trade-in and Galaxy S26 Ultra on Us deals up to $1,300—to stem cancellations.
1. Rising Postpaid Churn
Postpaid phone churn climbed to 1.02% in the fourth quarter, up from 0.89% in the prior quarter following bill hikes and contract normalization in early 2025. CEO Srini Gopalan highlighted that industry churn is reverting to pre-suppressed levels after extended 36-month agreements expired.
2. Aggressive Device Promotions
In January, T-Mobile launched its Better Value plan at $46 per line with autopay, followed by $65 Loyalty and $75 Experience More plans. The carrier is offering free iPhone 17 trade-ins on new lines and a Galaxy S26 Ultra on Us deal worth up to $1,300 off without any trade-in requirement.
3. Competitive Landscape and Consumer Behavior
To boost retention, T-Mobile also provides up to $1,100 off Galaxy S26+ with trade-ins and bundles discounts on Galaxy Buds4 Pro, tablets and smartwatches, plus $20 monthly savings when paired with 5G Home Internet and a $350 Samsung gift card. These promotions target price-sensitive customers as competitors are increasing their own trade-in and free-device offers.