T-Mobile makes bold move to lure AT&T and Verizon customers | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

T-Mobile faces heightened competition from its competitors, which has contributed to it seeing a slight uptick in customer losses in recent months.

For example, Verizon has been using artificial intelligence to scan bills from rival phone carriers, offering customized deals to customers. It has also offered generous deals on Samsung and iPhone devices.

Like Verizon, AT&T has also rolled out trade-in offers for new customers looking to snag newer iPhone or Samsung Galaxy devices, and it recently introduced a new 55+ Plan designed to attract older phone customers.

In addition, T-Mobile battles growing competition from cable TV companies such as Spectrum and Comcast, which offer consumers bundled phone, internet, and TV services at discounted prices.

Amid heightened promotional activity, T-Mobile saw its postpaid phone churn (the number of customers who canceled their phone service) increase by 3 basis points year over year during the third quarter of this year, according to its latest earnings report.

The loss in customers also comes after T-Mobile rolled out price increases, cut discounts, and altered phone plans over the past year and a half, frustrating customers.

Many consumers nationwide have expressed a greater willingness to switch phone providers due to heightened price sensitivity and a demand for personalized services.

T-Mobile saw an increase in customers fleeing to rivals.

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Why U.S. consumers are switching phone providers:

Approximately 90% of consumers would consider alternatives to traditional carriers.
Roughly 85% consider cost to be a primary factor in mobile provider selection.
Also, about 46% rank a lower-priced plan as their main reason for switching providers, while 33% prioritize better network coverage. Source: Oxio

“Our research exposes a significant gap between what U.S. consumers want from their mobile services and what traditional carriers currently offer,” said Oxio CEO Nicolas Girard in a press release. “While connectivity itself remains essential, consumers are increasingly drawn to new possibilities in how these services could be delivered and experienced.”

T-Mobile has a plan to lure customers away from rivals

As more Americans consider ditching traditional phone carriers, T-Mobile recently announced a new initiative called “15 Minutes to Better” to make switching from rival phone carriers easier for consumers.

The initiative aims to speed up the switching process so that it takes no more than 15 minutes. Starting Dec. 1, consumers looking to switch to T-Mobile can download the T-Life app and log into their current Verizon or AT&T plan. They can then select an option called Easy Switch, which will match them with a competitive T-Mobile offer.

In the app, customers can select a phone plan, choose their device (or skip if bringing their own), add accessories or add-ons, complete their credit check, and then review and submit their order within 15 minutes per line, according to T-Mobile’s website.

In addition, at select U.S. cities, T-Mobile is rolling out same-day delivery of new devices and accessories using DoorDash Drive, an option available to both new and current customers.

T-Mobile’s move to make upgrading phones more convenient for customers comes as new phones become increasingly expensive and more Americans hold onto their smartphones longer.

How Americans view phone upgrades:

The average American pays $634.35 for their phone. This is significantly less than the current retail prices of the latest premium phones, which are over $1,000.
The average American keeps their phone for roughly two years and five months.
On average, Americans want to upgrade their phone in 16 months, while only 29% plan to upgrade their phone in the next 6 to 12 months.
Only around 6% of Americans are willing to upgrade their phone due to a trade-in deal or a better contract option. Source: Reviews.org

T-Mobile doubles down on tackling customer frustrations

The initiative from T-Mobile also comes amid the company’s “digital transformation” to tackle customer pain points and make switching more seamless.

“It’s a very complicated transaction involving trade-ins and valuing trade-ins and signing up for a two-year payment plan, picking a plan, getting a promotion against that plan, possibly a promotion against that device,” then-T-Mobile CEO Mike Sievert said during an earnings call last month.

“People throw their hands up and say, ‘I need help.’ AI (artificial intelligence) is great at making the complicated uncomplicated.”

More Telecom News:

T-Mobile CEO Srini Gopalan, who replaced Sievert on Nov. 1, is reportedly planning to make customers 100% dependent on its T-Life app to handle upgrades, new lines, account activations, and more, by January. Currently, 75% of the company’s upgrades are completed on its T-Life app.

“The amount of friction and frustration we cause customers today because of our processes and the state of evolution in this industry is phenomenal,” said Gopalan during the earnings call last month. “We have a huge opportunity to change that with our digital transformation.”