AT&T sends harsh warning to customers

AT&T (T) and other rival phone carriers are currently benefiting from a major shift in customer behavior that is boosting their profits.

Consumers nationwide are cutting the cord on traditional internet services provided by cable companies such as Comcast and Spectrum as prices go up. 

According to a State of Consumer Trust Survey 2025 by Reviews.org, Americans faced an average internet price increase of $20.78 per month in 2024. This has pushed 75% of Americans to either cancel, downgrade, or consider switching internet providers.

As an alternative, many consumers are switching to fixed wireless internet services, which are cheaper than traditional internet provided by cable companies. Phone carriers including AT&T, Verizon, and T-Mobile offer fixed wireless internet, also known as 5G home internet. 

“Although 5G home internet technically isn't faster than cable or fiber internet, it offers a lot of value,” said Peter Holslin, managing editor at Reviews.org, in the survey. “5G internet packages are typically sold at fixed rates, with no extra fees for installation or equipment, and you often get other perks too like unlimited data and bundle discounts when you pair it with a cell phone plan from the same provider.”

A recent survey from Cord Cutters News revealed that only 40.2% of consumers now rely on cable TV companies for their internet service, a significant decrease from 45% in late 2024. Also, roughly 11% rely on 5G home internet, up from 8.4% just a year ago.

AT&T has bad news for internet customers

Amid this growing trend, AT&T welcomed 203,000 new AT&T Internet Air (5G home internet) customers during the second quarter of this year. It also gained 243,000 new fiber internet customers. 

This contributed to AT&T generating $6.5 billion in operating income, which is about 10% higher than what it earned during the same quarter last year.

As AT&T’s internet services grow in popularity, the company has decided to email customers to warn them that their monthly bills will increase by $5 on Dec. 1. The change will impact new and existing customers and all internet plans and services, such as 5G home internet, fiber, and DSL.

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Customers with bundled packages that include internet, TV, or phone services will also see the internet portion of their bill increase by $5.

“To ensure we continue providing the quality service and support you deserve, the price of your home internet plan will increase by $5/month, starting December 1, 2025,” said AT&T in an email to customers. 

In a statement to TheVerge, an AT&T spokesperson said the company is increasing the prices of its internet services due to “increasing operational costs.”

“As we work to meet the evolving needs of our business and manage increasing operational costs, we’re adjusting our internet plan rates to help maintain the high-quality service our customers expect,” said the AT&T spokesperson. “We’re committed to keeping customers informed about these updates and their choices. To help offset these changes, customers who have not already enrolled in Autopay and Paperless Billing can receive a $10 monthly discount by enrolling with an eligible bank account, or a $5 discount with a debit card. Customers can review all details regarding their plan and associated fees on their monthly statements or by visiting att.com.”

AT&T customers consider switching after latest price hike

The move from AT&T comes after it increased its internet prices by $5 in November last year. Some AT&T fiber internet customers also faced a $5 increase in 2023. 

In April this year, the company also reduced its monthly discount for autopay and paperless billing. Internet customers who pay their monthly bill with a debit card saw their discount shrink from $10 to $5, and customers who pay their bill with a credit card had their autopay and paperless billing discount completely removed.

More Telecom News:

• DirecTV customers threaten to leave after latest warning
• T-Mobile suffers massive boycott from customers
• Verizon quietly backtracks on harsh change that angered customers

Many AT&T internet customers took to the social media platform Reddit to express frustration with the latest round of price increases. Some claimed that the internet service wasn’t worth the higher price due to recent outages. 

“You guys don't even have stability right now and have gone out 3x in the past 3 months and you want us to pay more? You've lost your minds. I'm switching immediately,” wrote one AT&T customer in the comment section of a Reddit post discussing the price increase. 

“I received this notice the same day my home internet stopped working for 2 days straight. Feels like a slap in the face, paying even more for a service that doesn’t work when you need it,” wrote another customer.

“ATT advertised the price was not just an intro rate like other providers. I'm pissed about another price increase,” claimed another.

Related: DirecTV plans controversial change for customers amid struggles