T-Mobile to slash device discounts on select plans: What you need to know

T-Mobile will introduce exclusions on promotional discount deals associated with tiered rate plans
T-Mobile to slash device discounts on select plans: What you need to know

In the United States, T-Mobile is certainly one of the important carriers, hence heavily impacting the smartphone market. It determines which Android flagships consumers use and when they upgrade.

To remain competitive, T-Mobile has introduced many rate plans, including discount plans for certain groups, such as those 55 and above, First Responders, and Military personnel.

But a leaked report shows that T-Mobile is going to soon deny the "segmented" rate plans a place in the highest device promotion values.

T-Mobile's segmented rate plans

Discounted costs on the mainline plans were given to customers by T-Mobile's segmented rate plans. Thus, these plans are designed to assure the availability of discounts specifically to targeted groups, which include:

  • Senior citizens aged 55 and above
  • First Responders
  • Military personnel

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Currently, consumers on those plans enjoy massive discounts on new handsets, often comparable to those available on non-tiered plans.

The leaked report indicates that T-Mobile will introduce exclusions on promotional discount deals associated with tiered rate plans from 4th October. This would mean that customers on those plans get fewer discounts compared to non-discounted standard plans. For instance:

  • Galaxy S24: For the mainline plans, $800 is deducted; the segmented plans receive $600
  • Moto Razr Plus: In the case of mainline plans, the entire phone may go free. For the segmented plans, $800 is deducted from the sale price.

For the first time, in this round, plans and segments have different offers. Yet, it is unclear whether this offer extends to other future promotions or is exclusive to this round.

Existing customers on segmented rate plans might see lower promotional discounts on the new devices. If eligible for one of these plans, you would need to:

  • Check the promotional discount available on the upgrade.
  • Compare the mainline and segmented plans' offers.
  • Switch to a mainline plan for improved offers on promotions.