T-Mobile makes unexpected move to lure customers from competitors

It is no secret that many Americans across the country are frustrated with price increases.

This trend has especially impacted home internet bills, as many internet providers have hiked prices for their services, causing consumers to make drastic decisions to save money.

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According to a new survey from CNET, 63% of U.S. adults saw the monthly price of their home internet service increase last year. On average, they paid $195 more for internet service in 2024 than they did in 2023.

Despite paying higher prices for internet, 51% of the respondents in the survey said they still experienced unreliable connectivity. These price hikes even pushed one in five U.S. adults to either downgrade their service, switch internet providers or cancel their service altogether.

Many consumers have been flocking to providers such as T-Mobile (TMUS) , AT&T, and Verizon (VZ) , which all offer fixed wireless internet. This service provides internet access to remote or underserved areas at a price that’s usually cheaper than traditional internet services.

During the first quarter of 2025, T-Mobile added 424,000 new high-speed internet customers. This contributed to the company generating a net income of $3 billion, which is 24% higher than what it earned during the same quarter in 2024.

T-Mobile introduces new plans.

Image source: Anna Moneymaker/Getty Images

T-Mobile makes a big announcement

As more consumers ditch traditional internet service providers such as Spectrum and Comcast for cheaper options, T-Mobile will launch its Fiber Home Internet service on June 5, which introduces three new fiber internet plans with five-year price-lock guarantees.

This first plan is called Fiber 500, which is $75 per month with an autopay discount. T-Mobile says this plan is ideal for “everyday streamers, remote workers, and smaller households,” according to a press release.

For customers who have “busy households with multiple people streaming, gaming, and using smart devices at the same time,” T-Mobile is offering a plan called Fiber 1 Gig, which is $90 a month with autopay.

For “high-demand” internet users who want a “top-tier speed,” T-Mobile has introduced Fiber 2 Gig for $105 a month with, of course, an autopay discount.

If customers want to shave $15 off the monthly price for each plan, they have the option to purchase and attach a T-Mobile voice line to it.

In addition, T-Mobile also announced a limited-time Founders Club offer where customers in select locations can get a 2 Gig fiber internet plan for $70 a month with autopay activated. No voice line is required for this plan, and it comes with a 10-year price lock guarantee.

“With the official launch of T-Mobile Fiber, we’re delivering on our promise to bring better broadband to more people — the Un-carrier way,” said Allan Samson, T-Mobile chief broadband officer in the press release. “Our new plans, backed by long-term price guarantees, are designed to give customers more choice and peace of mind.”

T-Mobile is facing a growing threat

The move from T-Mobile comes after it officially acquired fiber-to-the-home provider Lumos in April to expand its fiber internet service. T-Mobile Fiber is now available to over 500,000 households across the nation.

T-Mobile’s announcement also comes after one of its top competitors, Verizon, received approval last month from the Federal Communications Commission to acquire Frontier Internet. This will accelerate the delivery of its mobility and broadband services to current and new customers.

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The deal is set to expand Frontier’s network in 25 states and deploy fiber internet to 1 million or more U.S. homes per year.

“Frontier customers and those previously outside Verizon’s fiber footprint are expected to gain more choice and access to Verizon’s premium mobility, home internet, streaming and connected home offerings, alongside premium business products like Verizon Business Complete,” said Verizon in a press release last year when it first announced the acquisition.