T-Mobile scales back a longtime customer perk amid struggles

T-Mobile is limiting a longtime perk it has advertised for years, despite recently facing elevated customer losses. The move is part of a broader series of changes it has made to its customer perks and benefits in recent months. 

For example, shortly after T-Mobile appointed Srini Gopalan as its CEO in November last year, the carrier began notifying customers that it was pulling the plug on its JUMP! On Demand program in December. The program allowed customers to upgrade their phones every 30 days. 

It also warned customers that it will start charging a monthly fee of $3 for its Apple TV “On Us” perk, which had been free for “Plus” phone plan customers since 2021. This change officially went into effect on Jan. 1. 

Earlier this month, T-Mobile even reduced the number of times a single promotion can be applied to an account from four to two, according to The Mobile Report. Also, most of the company’s free phone lines are no longer eligible for device promotions.

T-Mobile signals changes to its free in-flight Wi-Fi perk

Most recently, T-Mobile warned customers that it is restricting its airline Wi-Fi programs, which it has operated for more than a decade.

For years, the carrier has partnered with select airlines to offer customers free in-flight Wi-Fi on Wi-Fi-enabled aircraft, allowing them to surf the web, stream, and send texts and emails.

However, according to a recent email sent to T-Mobile business customers, which was shared on social media platform Reddit, the company has removed free in-flight Wi-Fi on some flights and airlines, a change that took effect on April 13. 

In the email, T-Mobile didn’t name which airlines will no longer offer its free in-flight Wi-Fi. However, on its website, the carrier currently lists only Delta Air Lines, Alaska Airlines, Southwest Airlines, and Hawaiian Airlines as carriers that support this service.

In a statement to TheStreet, T-Mobile said “the airline industry has evolved, with airlines expanding free Wi-Fi through their own loyalty programs” over the past few years, citing American and United.

Related: T-Mobile tests customer loyalty with another fee hike

“As a result, airlines are now offering sponsored in-flight connectivity directly to their members, regardless of wireless provider, and provider-specific services are winding down, including at American and United,” read the statement. 

The move from T-Mobile follows its expansion of free in-flight Wi-Fi to United Airlines flights in September 2022. United later entered a partnership with Starlink to offer in-flight Wi-Fi to all flights sometime in 2027. 

In January this year, American Airlines began offering free, high-speed in-flight Wi-Fi, sponsored by AT&T, on most domestic and select international flights. 

So it is no surprise that T-Mobile is scaling back its free in-flight Wi-Fi availability.  

In a statement to The Washington Post in September last year, Sean Cudahy, senior aviation reporter at The Points Guy, said the airline industry has reached a turning point in offering Wi-Fi on aircraft.  

“Every airline has a little bit of a different timeline, but I think we’re really at an inflection point where this is quickly becoming the industry norm to have decent or good WiFi on board and to offer it for free,” said Cudahy.

T-Mobile is restricting its free in-flight Wi-Fi perk for customers.

Shutterstock

T-Mobile’s latest move adds pressure as customer losses mount

In response to T-Mobile’s latest change to its free in-flight Wi-Fi perk, some customers took to Reddit to express their frustrations.

“Well this might be the final nail that makes me switch away from TMO, as it’s a benefit I valued,” wrote one customer. 

“Tmobile just gets worse and worse. Raised prices on plans they said they never would. Fired a bunch of employees and hired H1B/offshoring. Constantly taking away perks,” wrote another. 

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“This is awful. And these main reason I went with T-Mobile. I’m going to be downgrading my account now and looking for another provider,” wrote another customer. 

Restricting this benefit is a risk for T-Mobile, which has battled elevated churn in its wireless business over the past year, following price increases and changes to phone plans. 

Last year, T-Mobile’s postpaid phone churn (the percentage of customers who cut their service) rose to 0.93%, up from 0.86% in 2024, according to the carrier’s most recent earnings report. 

A recent survey from Oxio found that many wireless consumers nationwide have been exploring cheaper options for wireless services from nontraditional providers, such as MVNOs and cable companies, to escape recent price hikes.

Why more Americans are rethinking their phone plans:

  • Around 70% of U.S. consumers review their wireless plan at least once a year.
  • Rising costs are a major trigger of this behavior, with 58% of consumers saying bill increases push them to reconsider their current plan. 
  • Price is the top priority for 79% of consumers when choosing a new plan, followed by network coverage (63%), speed and performance (60%), while billing transparency trails at 40%
  • Also, 27% said rewards, perks, and extra benefits matter. 
  • Nontraditional mobile providers are gaining momentum as 75% of consumers view them positively or neutrally, and 56% would consider purchasing mobile service from a retailer.
    Source: Oxio

“Trust is becoming a competitive lever,” said Oxio CEO Nicolas Girard in the survey. “Retailers and digital-first brands are emerging as credible places to buy mobile service. Familiarity, accountability and perceived fairness matter more when consumers are watching every fee.”

Related: Verizon raises price on key discounted offer for customers

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