At&t raises prices on older phone plans as customer exodus accelerates
at&t is hiking prices on some of its older unlimited phone plans, a move that comes as the carrier grapples with a significant wave of customer churn. The changes, announced last week, will affect legacy plans active before July 24, 2025, with single-line plans seeing a $10 monthly increase and multi-line accounts facing a $20 rise.
The price increase arrives amid mounting subscriber losses.
The move, detailed on a support page initially overlooked by at&t, aims to boost revenue, according to the company. “This change helps us continue providing reliable network service, quality products, and great customer experiences,” the support page states. But analysts see a different motive: enticing legacy plan users to upgrade to more profitable offerings. This strategy has already shown some success, as at&t's stock saw a bump on Friday, defying a broader market downturn.
The numbers paint a stark picture. at&t’s fourth-quarter postpaid phone churn rate reached .98%, a 13 basis point increase year-over-year. While the company added 1.55 million net postpaid phone subscribers last year, that represented a 10% decline compared to 2024.
The shift in the U.S. wireless market is undeniable. T-Mobile’s aggressive push towards a digital-first approach, coupled with Verizon's focus on premium services, are putting pressure on at&t. The carrier’s own brand identity has also become a weakness. From 2007 to 2011, AT&T heavily leaned on the iPhone partnership and the Milana Vayntrub-led Lily Adams campaign, yet failed to establish a lasting distinctiveness with consumers.
Visible, with its aggressive pricing—starting at $5/month—is perfectly positioned to capitalize on the dissatisfaction. The service offers a stark contrast to AT&T's strategy, and it's a direct challenge to the status quo. The company is now at a crossroads. It must define its position and communicate it effectively, or risk further erosion of its customer base.
The question isn’t whether AT&T can survive; it’s whether it can adapt. The company’s recent actions suggest a desperate attempt to recapture profitability, but the market is shifting rapidly, and consumers are increasingly willing to explore alternatives.