T-Mobile’s latest indirect price hike is tempting many to leave, according to a poll we conducted. The company raised the Regulatory Programs & Telco Recovery Fee yet again earlier this month, following numerous prior increases.
T-Mobile customers are criticizing it for the hike
The Regulatory Programs & Telco Recovery Fee is not imposed by the government. It’s charged by T-Mobile to cover operational and compliance costs. After a $0.50 increase for each voice and data line, the fee has increased to $4.49 for voice lines and $2.10 for mobile internet lines. It has been raised multiple times since its rollout in 2004, with the previous increase occurring in April.
While the advertised rates for plans remain unchanged, the increased surcharge means customers will be paying more every month.
Even though this fee is standard across the industry and T-Mobile argues it provides the best value, many customers are reaching a breaking point after a string of similar hikes.
929 (68%) of the 1,372 readers who responded to our poll are contemplating leaving after the increase. 233 (17%) of the respondents said this was the final increase they were willing to tolerate.
Only 210 (15%) of customers are relatively unbothered and are not planning an exit.
Un-carrier no more?
While T-Mobile may still offer more competitive rates than its rivals, some customers believe that it’s mimicking Verizon. Verizon continued raising prices until customers started leaving in droves, forcing it to hit pause.
The recovery fee adjustment coincides with the increase in Protection 360 rates.
The hike undermines the 5-Year Price Guarantee, as while plan rates remain the same, their tax-exclusive nature means that taxes and other fees are not fixed.
Online anger only
While there has been a lot of uproar over unfavourable moves by T-Mobile, the company continues to boast an industry-leading churn rate, meaning it doesn’t lose as many customers as rivals. Meanwhile, it also continues adding more new customers than other carriers.
Online frustration rarely translates into actions. Customers’ perception of T-Mobile has improved, and it also outranks AT&T and Verizon on many key connectivity metrics. Thus, when the anger blows over and prudence kicks in, most customers will likely stick with the carrier.
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