T-Mobile is changing how customers finance new devices after previously saying it would scale back free phone deals and device subsidies.
During an earnings call in February, T-Mobile CEO Srini Gopalan revealed that the company is moving away from device subsidies and will rethink its approach to these deals, noting that customers purchase new phones roughly once every three years.
He later doubled down on this plan during an earnings call in July, stating that the company has given consumers 250 reasons to switch to its network, extending beyond free phone offers. Gopalan also warned that customers will soon have to pay more for smartphones due to rising memory chip prices.
“What we’re seeing is clearly the memory price increases are resulting in higher prices for smartphones across the board,” he said. “Our intention, consistent with what we’ve said, is not to increase our subsidy levels. That’s going to mean that customers will have to pay more. That’s just the result of that dynamic.”
T-Mobile introduces “Nothing” device financing initiative
Amid these changes, T-Mobile has announced its “Nothing” initiative, which is a new way for new and existing customers to pay $0 upfront for a new phone, according to a recent press release.
This includes T-Mobile updating its equipment installment plans (EIP) to offer 36-month financing instead of its previous standard 24-month financing, which will help lower monthly payments for customers as prices for premium devices rise.
The carrier now offers two different versions of these new plans. The first is EIP Flex 36, which T-Mobile states is “the only financing option in wireless that lets new and existing customers finance the device, taxes, and fees at checkout over 36 months.”
Customers enrolled in this plan, which has 0% annual percentage rate (APR) for a limited time, pay $0 upfront for their new device.
The second option is EIP Standard 36, T‑Mobile’s traditional financing option with 0% APR and 36-month financing.
T-Mobile launches new wireless plans for customers
In addition to T-Mobile’s revamped EIP options, the carrier has also launched a slate of new wireless plans.
It now offers new Essentials 2.0 and Experience 2.0 plans, which include the new EIP Flex 36 and EIP Standard 36 device financing options.
T-Mobile’s new Essentials 2.0 plan offers unlimited talk and text, 50GB of premium data, and T‑Mobile Tuesdays weekly perks.
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Its new Experience More 2.0 plan includes everything Essentials 2.0 offers, plus unlimited premium data, high-speed data in over 215 countries, mobile hotspot, Netflix on Us perk, $3 per month for Apple TV, and a 5-year price guarantee.
Experience Beyond 2.0 has everything in Experience More 2.0, but it also includes T-Satellite connectivity, $5 connected device add-ons, and free access to Hulu, Netflix, and MLB.TV.
T-Mobile says customers who switch to this plan can “save $750 in the first year thanks to $100 back and built-in benefits worth $650.”
The carrier has also introduced new Student Perks plans just in time for back-to-school season. It is offering students their own wireless line for $30 a month with the autopay discount applied, plus taxes and fees. T-Mobile claims that students can save 40% on a single line compared to AT&T and Verizon.
Additionally, T-Mobile is offering a “student-exclusive 5G Home Internet bundle” that includes a virtual prepaid card worth up to $200.
“Last year, we made switching faster and more convenient,” said Andre Almeida, chief Marketing, brand and broadband officer at T‑Mobile, in the press release. “Today, we’re making it more affordable and giving customers more choice in how they join and experience America’s Best Network.”
“Lowering upfront costs with EIP Flex 36 and making our plans more accessible through Student Perks are just the latest ways T‑Mobile is continuing to remove the barriers that keep people from experiencing everything T‑Mobile has to offer,” he added.
T-Mobile is responding to price-conscious wireless consumers
The new plans and device financing changes from T-Mobile come at a time when U.S. consumers are increasingly avoiding high prices and seeking value in the wireless market.
A survey from Oxio in March found that 79% of U.S. consumers value affordable pricing the most in a wireless provider. Also, 40% said billing transparency was the most important, while 27% said perks, rewards, and added benefits.
In a recent American Customer Satisfaction Index report in May, SJ Lefebvre, a marketing and content lead at ACSI, said that as telecommunications customers navigate “persistent inflation and tighter household budgets, ‘value’ is a quantifiable priority acted on with precision.
“Telecom customers are steadily measuring what they receive against what they pay, and rewarding providers that deliver consistent, affordable quality,” said Lefebvre.
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“In 2026, that judgment remains one of the clearest forces shaping customer experience: brands that pair reliability with affordability continue to earn stronger satisfaction, while those that ask customers to pay more without making the experience meaningfully better risk customer defection.”
As consumers become more sensitive to high prices, T-Mobile is currently expecting a spike in customer losses and a slower postpaid account growth in the third quarter of this year.
The carrier said this is mainly due to several major wireless plan changes it recently made, including discontinuing several older phone plans in June and moving customers on those plans to newer ones that, in some cases, are more expensive.
“As part of our full-year plan and guidance, we anticipated our Q3 (third quarter of 2026) rate plan modernization would result in a temporary elevated account churn profile and expect Q3 net postpaid account additions to be approximately 250,000,” said T-Mobile Chief Financial Officer Peter Osvaldik during the company’s earnings call on July 23.
Related: T-Mobile CEO doubles down on reducing free offers for customers
