T-Mobile's Long Game: Five-Year Price Lock Takes A Jab At Verizon

T-Mobile US, Inc’s TMUS prepaid brand Metro announced on Tuesday that starting April 24, the company is lowering prices across the board and launching four new plans: Metro Starter, Metro Starter Plus, Metro Flex Unlimited and Metro Flex Unlimited Plus.

Metro guarantees that lower talk, text and data prices will remain unchanged for the next five years.

Plus, customers can get a new phone on each plan when they bring their number.

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Under the Metro Starter plan, a family of four can sign up for just $25 per line per month with AutoPay (it’s $105 total for the first month). Each person can get a 5G phone, implying up to $350 in savings for a family of four.

As per Metro Starter Plus, a consumer can bring their existing number, get a new phone and have unlimited talk, text and 5G data for just $40. New customers can also get two lines with unlimited 5G and two Samsung Galaxy A15 5G phones for $65 per month.

Under the Metro Flex Unlimited plan, a family of four can pay $30 per line with AutoPay ($125 total for the first month) and unlimited talk, text and 5G data. The Flex plans include annual device upgrades with the same deals new customers get when they trade in their phones after 12 months.

Per Metro Flex Unlimited Plus, customers can avail of over $250 in added value and $10 a month less than Metro Flex Plus. Customers can enjoy Amazon Prime at no extra cost. Customers can bring a smartwatch or tablet to Metro and connect them for just $5 a month each, plus, they also get HD video streaming.

New and existing customers can add a 2GB line to any plan for just $15 at $5 a month starting in month two.

Rival Verizon Communications Inc VZ reported fiscal first-quarter results on Tuesday. Its revenue growth was 1.5%, reaching $33.49 billion, topping the analyst consensus estimate of $33.24 billion. Adjusted EPS of $1.19 topped the analyst consensus estimate of $1.15.

Postpaid phone net losses were 289,000 versus 114,000 net losses Y/Y driven by price hikes, intense rival promotional offers, and lesser government support. Verizon attributed some of the loss to lower spending by some federal agencies.

Verizon reiterated a 2%–2.8% growth in wireless service revenue. It reaffirmed an adjusted EPS of $4.59 – $4.73 versus consensus of $4.67.

Verizon reiterated $17.5 billion to $18.5 billion in 2025 free cash flow, $35 billion to $37 billion in operating cash flow and $17.5 billion to $18.5 billion in capital expenditure. Verizon’s guidance does not include any tariff impact.

Verizon recently promised a three-year price guarantee and a free phone trade-in for mobile phones and home internet plans to gain market share.

According to Bloomberg analysts, Verizon and its rivals remain shielded from President Donald Trump’s tariff policies because of their U.S. focus.

TMUS Price Action: T-Mobile US stock traded higher by 1.71% to $257.89 at publication on Tuesday.

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