T-Mobile subscribers don’t really care what free lines might cost them
T-Mobile often runs promotions that award customers a free or discounted line for opening one or more paid lines. When asked if these free lines were converted into paid lines later on, T-Mobile‘s President of Consumer Group, Jon Freier, hinted that the question missed the bigger picture.
Freier said that analysts often use free lines as a gauge for the quality of the customer base. He pointed out that the increasing postpaid service revenue showed that the customer base was strong.
Freier also revealed that free lines were a retention tool, targeted at customers contemplating moving their accounts away. This could potentially help disgruntled customers stay with T-Mobile for up to three years longer than they would have. This makes their Customer Lifetime Value (CLV) or total revenue over their time at T-Mobile go up.
Then, of course, we have an opportunity to further differentiate and deepen that relationship, too, with other products and services and get more and more adoption from things beyond the smartphone, whether that be tablets or watches or fixed wireless with our 5G home broadband.
–Jon Freier, President of Consumer Group at T-Mobile, September 2025
While the majority of the respondents were fine with free lines being used to generate more business for T-Mobile, 1406, or 29 percent, found it dodgy.
Others were somewhere in between and took solace in the fact that at least they were getting something out of their additional years at T-Mobile, notwithstanding any potential increases in spending. Some shrugged it off, highlighting that free lines weren’t binding in any way.
Customers understand that corporations aren’t charities and they have ulterior motives behind everything they do. What perhaps makes most of them very tolerant in this case is that they are getting a good deal in return. This is an example for companies that not only want to retain customers, but also want them to increase spending. Customers won’t mind deepening their relationship with you as long as they are taken care of.
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