T-Mobile Breaks ‘Un-contract’ Promise, Raising Prices and Prompting Customer Backlash

In 2017, Kathleen Odean believed she had found the last cell phone plan she would ever need. T-Mobile was offering a service plan for those aged 55 and over, including an “Un-contract” guarantee that prices would never rise. “I thought, wow, I can live out my days with this fixed plan,” Odean, a 70-year-old Rhode Island resident, explained to Ars Technica last week. She and her husband had switched from Verizon for the $60-a-month plan for two lines.

Despite its Un-contract promise, T-Mobile announced in May 2024 a price increase for customers like Odean, who thought they had a lifetime price guarantee on plans such as T-Mobile One, Magenta, and Simple Choice. The $5-per-line price increase will raise her family’s monthly bill from $60 to $70.

T-Mobile’s January 2017 announcement of its Un-contract for T-Mobile One plans stated that “T-Mobile One customers keep their price until THEY decide to change it.” The promotion asserted, “T-Mobile will never change the price you pay for your T-Mobile One plan.” However, T-Mobile contradicted this promise on a separate FAQ page, which stated that the only real guarantee was that T-Mobile would cover customers’ final month’s bill if they canceled due to a price rise.

Customers, including Odean, are frustrated. “I can afford it, but I gotta tell you, it really annoys me because the promise was so absolutely clear… It’s right there in writing: ‘T-Mobile will never change the price you pay for your T-Mobile One plan.’ It couldn’t be more clear,” Odean said. She has filed complaints with the Federal Communications Commission and the Rhode Island Attorney General’s Office.

The issue underscores the sudden shift from T-Mobile’s previous approach under former CEO John Legere, who left the company in 2020 following the Sprint merger. Legere had built the company’s reputation as the “Un-carrier,” emphasizing fair treatment of customers and often criticizing larger rivals like AT&T and Verizon.

Odean’s frustration is echoed by many others. T-Mobile is now facing backlash for what customers claim is “deceptive advertising aimed at seniors” and the FCC has reportedly received over 1,600 complaints.