Besides the five-year price guarantee, there’s at least one more notable pricing detail. T-Mobile’s previous plans had “taxes and fees included,” meaning the advertised price was inclusive of taxes and fees. With the new Experience plans, taxes and fees will be in addition to the advertised price.
This will make the plans cost more initially than customers might expect, and it gives T-Mobile wiggle room to raise prices during the five years of the price guarantee since it could increase any fees that are tacked onto the new plans. The fine print in today’s press release describes taxes and fees as “exclusions” to the price guarantee.
“Fees” can refer to virtually anything that a carrier chooses to add to a bill and isn’t limited to the carrier’s actual costs from taxes or government mandates. For example, T-Mobile has a “Regulatory Programs and Telco Recovery Fee,” which it acknowledges “is not a government tax or imposed by the government; rather, the fee is collected and retained by T-Mobile to help recover certain costs we have already incurred and continue to incur.”
This can include the cost of complying with legal obligations, “charges imposed on us by other carriers for delivery of calls,” and the cost of leasing network facilities that are needed to provide service, T-Mobile says. In other words, T-Mobile charges a separate fee to cover the normal expenses incurred by any provider of telecommunications services.
The promise is thus that the base price of a service plan won’t change, but T-Mobile gives itself wide discretion to add or increase fees on customers’ monthly bills. “Guarantee means that we won’t change the price of talk, text, and 5G smartphone data on our network for at least 5 years while you are on an Experience plan,” T-Mobile said today. T-Mobile’s terms and conditions haven’t been updated, but the terms address price promises in general, saying that price locks do not include “add-on features, taxes, surcharges, fees, or charges for extra Features or Devices.”
