T-Mobile created a shockwave within the US telecommunication sphere last week when it axed the entire gamut of its legacy and grandfathered plans. Well, now the carrier's roving eyes have landed on consumer-facing cellphone subsidies, and the outcome is entirely predictable if a tad melancholic.
T-Mobile is now ending its $800 per line cellphone subsidy for all existing users
For the benefit of those who might not be aware, T-Mobile currently offers two promo-type cellphone subsidies:
- Keep and Switch reimburses a maximum of $800 per line as an incentive for you to clear your remaining device-related balance at another carrier and switch to T-Mobile.
- Family Freedom again offers a reimbursement of up to $800 per line, but also requires that you hand in your old device and buy a new one from T-Mobile on an installment plan.
Up till now, even existing T-Mobile users could avail themselves of these lucrative subsidies by simply opening a new line. Well, good luck with that attempt now.
According to The Mobile Report, beginning on July 09, only new T-Mobile customers, including those who've subscribed to just its Home Internet or T-Satellite services, will be able to enjoy these $800 subsidies. This move essentially incentivizes you to switch to another carrier if you are looking for a new cellphone.
Meanwhile, as we noted recently, T-Mobile has just retired almost the entirety of its legacy plans, including Simple Choice, ONE, ONE Plus, and the Magenta family of plans. What's more, the carrier has also jettisoned its grandfathered Sprint plans, which are a holdover from its acquisition of Sprint back in 2020.
All customers on these legacy plans are now being graduated to more "modern" bundles, including Essentials, Essentials Saver, Experience More, Experience Beyond, and Better Value. While T-Mobile insists that the move ensures that its customers receive services they might not have had access to previously, such as premium 5G speeds, more hotspot data, and international roaming in more countries, it will hike the average per-line cost by around $4.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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