T-Mobile is increasing the costs for customers on older or Essentials plans by raising its “Regulatory Programs & Telco Recovery Fee.” Starting April 23, 2025, the fee will rise by $0.50 per voice line and $0.20 per data line. This follows another recent price hike where T-Mobile raised the monthly cost by $5 per line for customers on older plans. The increase in fees means that the total cost will be $3.99 per voice line and $1.40 per data line.
While the name of the fee may sound like a government charge, it is important to clarify that it is not a tax imposed by the government. T-Mobile defines this fee as a charge collected to help recover costs it has incurred and continues to incur. Although it supports various government programs, including E911, it also reflects expenses that T-Mobile pays to other carriers for delivering calls. This increase affects customers on older legacy plans and the current Essentials plan, as most of T-Mobile’s newer Go5G plans have taxes and fees included in their pricing.
The speculation is that T-Mobile aims to encourage customers to move off these cheaper, older plans, which provide less revenue and profit for the company. Given the competitive landscape with numerous mobile virtual network operators (MVNOs), this strategy could backfire, potentially leading to customer loss. Customers considering a switch from T-Mobile have alternatives. For example, US Mobile offers competitive plans that work with all major carriers.
With attractive pricing and options for high-speed data, it presents a viable alternative for those looking to leave T-Mobile behind due to these recent increases.