T-Mobile tweaks FWA pricing, adds $35 optionT-Mobile tweaks FWA pricing, adds $35 option

In a move that could help T-Mobile better segment the broadband market, the operator has introduced three plans for its 5G-powered fixed wireless access (FWA) home and small business broadband services that vary by price and features. T-Mobile's new plans now start at $35 per month – down from the prior low point of $50 per month.

Here's how the new tiers, which all feature a price lock and require AutoPay, break down on the residential side:

As has been the case in the past for T-Mobile, its new plans come with a price lock, which means customers keep their starting price for as long as they are on the plan. The new tiers also come with the associated FWA gateway, unlimited data, no long-term contracts and a 15-day test drive, and "standard" security. The Amplified and All-In plans also get T-Mobile's "advanced" security product.

T-Mobile has launched a similar set of tiers for small businesses that start at $35 per month with a voice line, on up to $70 per month. Perks for the small business version of the All-In plan include the Microsoft 365 bundle (starting in February 2025).

The terms of the updated price lock appear to be better than the one T-Mobile used in its prior plans, said New Street Research analyst Jonathan Chaplin in a research note (login required). "Previously, T-Mobile could increase the FWA plan price and if you cancelled within 60 days, they would pay your final bill. With the new plans, they seem to have relinquished their ability to increase the price (unless you change your plan or equipment)," he explained. "Besides this, the terms of the old and new plans are identical, as far as we can tell."

Boost the bundle?

Chaplin also expects the new plans to help T-Mobile shift the mix to customers who bundle mobile with home broadband. "Previously, 70% of T-Mobile's FWA customers were also T-Mobile mobile customers," he noted.

T-Mobile's move could help the company better segment different parts of the broadband market, a strategy that its cable broadband competitors are also trying to achieve with a wider range of tiers, including some lower-priced tiers designed to compete with FWA options.

The new tiers also emerge as T-Mobile has seen the rate of FWA subscriber growth begin to fade, despite having about 1 million customers on a waiting list for the product. T-Mobile added 415,000 FWA subs in Q3 2024, down from a gain of 557,000 in the year ago period. T-Mobile ended Q3 with 6 million high-speed broadband customers.

Tied into a holiday promotion, T-Mobile said new subscribers to its Home Internet service are in line for a free 40-inch Amazon Fire TV when they sign up online for one of the new plans, or a $150 virtual prepaid Mastercard when they sign up online.