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T-Mobile Halts Controversial Plan: High-Cost Shift Reconsidered

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In a surprising turn of events, T-Mobile has reversed its decision to shift selected subscribers to pricier mobile plans, initially set for commencement in November this year. This decision was unveiled earlier this month via leaked documents, indicating a proposed transfer of customers from four low-cost mobile packages to higher-cost alternatives, thereby increasing their bill by approximately $5–10.

The possibility of this substantial increase generated a wave of criticism from customers and media outlets alike. Subscribers were forecasted to receive a two-week notice before the shift’s commencement, with the option to opt-out by reaching out to customer service.

T-Mobile CEO Mike Sievert, addressing the backlash, referred to this proposed change as merely “a very small test”, assuring that not all customers on the impacted plans would be affected. Sievert sent an email to all T-Mobile employees, downplaying the potential impact of this operation.

He elucidated in a media and analyst call, “We tend to do tests and pilots of things quite a bit to try to figure out what’s the right answer. In this case, we had a test sell to try to understand customer interest in, and acceptance of, migrating off old legacy rate plans to something that’s higher value, for them and for us.”

However, recognizing the negativity surrounding the test, Sievert conceded that this “particular test sell isn’t something that our customers are going to love.” The media and customer resistance ultimately led T-Mobile to revoke the plan in its entirety this week.

Despite the negative feedback, T-Mobile highlighted the importance of such small-scale tests in refining the customer experience and maintained its determination to continue with them. Indeed, future tests could possibly include another attempt to transition customers to more expensive plans.

Emphasizing the necessity to rationalize legacy rate plans, Sievert stated, “We remain very interested in rationalising our legacy rate plans. So, we’re going to stay at it.” The decision to backtrack on this contentious plan indicates a crucial win for consumers in the face of potential cost increments.

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