AT&T is seeing more consumers switching carriers amid fierce competition. Loyal phone customers have canceled service at higher rates in recent months.
Faced with these challenges, the carrier added three new cell phone plans to attract new customers and help stop loyal customers from looking elsewhere.
According to AT&T’s latest financial report, in the fourth quarter of 2025, AT&T’s postpaid phone churn rate (that is, the percentage of customers who disconnected their phone service) reached 0.98%. This is up from 0.85% reported in the same quarter in 2024.
In addition, AT&T lost 255,000 prepaid phone customers this quarter, bringing its prepaid business churn rate to 2.89%, a year-on-year increase of 0.16%.
During an earnings call in January, AT&T CEO John Stankey acknowledged that “switching activity” in the wireless industry will increase in 2025 and that “macro factors” are causing slow customer growth in the traditional postpaid phone market.
Last April, AT&T decided to cut its autopay discount from $10 to $5 for customers who paid their monthly bills with a debit card, a move that sparked a backlash and led to a loss of customers. It also completely eliminated discounts for customers who pay with credit cards.
AT&T also came under fire last year for allegedly luring cell phone customers with higher-than-expected monthly bills to get deep discounts from rival carriers.
In December, AT&T even increased its administrative and regulatory cost-recovery fee from $3.49 to $3.99 per line, which phone customers pay on their monthly bills.
More and more consumers across the country are switching carriers in search of more affordable cell phone plans. Some have even been exploring wireless service options from mobile virtual network operators and cable companies, offering phone service as part of bundled packages.
A WhistleOut investigation last year found that AT&T was at risk of losing 64.9 million customers due to overpriced mobile plans.
To help target price-sensitive customers, AT&T has revamped its wireless plan offerings with the launch of three new “2.0” plans, which the carrier is calling the “Unlimited Your Way” series, according to a recent press release.
These include: AT&T Value 2.0, AT&T Extra 2.0, and AT&T Premium 2.0. The operator claims that customers can get “real value” with these new products “without having to choose the most expensive plan”.
AT&T Value 2.0 starts at $50 per month for one line, and each line added to the plan reduces the price by $5 per line. This plan provides customers with AT&T ActiveArmor security (a free app that helps block spam calls and text messages), 3GB hotspot data per line, and SD streaming.
The next tier is AT&T Extra 2.0, which starts at $70 per month for a single line. Each additional line added to the plan reduces the monthly price per line by $10. This tier offers customers 100GB high-speed data, AT&T ActiveArmor security, 50GB hotspot data per line, and SD streaming.
AT&T Premium 2.0 offers a single line for $90 per month. Prices are $80 per line for two people; $65 per line for three people; and $55 per line for four people.
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The plan includes unlimited high-speed data, AT&T ActiveArmor security, 100GB hotspot data per line, and 4K Ultra HD streaming. It also offers free unlimited calls, texts and high-speed data in 20 Latin American countries.
All three plans start at a lower price than the previous unlimited plan. AT&T Unlimited Starter costs $66 per line, Unlimited Extra and Unlimited Premium cost $76 and $86 respectively.
“Customers are clear: They want simple plans, great features and real value. That’s what Unlimited Your Way delivers,” said Jenifer Robertson, executive vice president of mass markets at AT&T, in a press release. “We’re giving customers the choice and reliability they want, all backed by the AT&T Guarantee.”
More telecom news:
AT&T’s wireless plan overhaul is the carrier’s way of encouraging customers to upgrade to higher plan tiers; however, it could have the opposite effect, New Street Research analyst Dave Barden said in a research note seen by Light Reading.
“AT&T’s goal is to incentivize bottom-tier customers to upgrade to the mid-tier now that the gap between bottom and mid-tier has narrowed,” Baden wrote in a research note. “There is some cannibalization risk for top-tier customers who may be downgraded to the mid-tier.”
AT&T’s move comes after T-Mobile launched “Better Value” cell phone plans in January, which start at $140 per month with autopay for three lines, meaning households are charged $46 per line.
Additionally, T-Mobile quietly launched two new cell phone plans in February for eligible customers. These include the Experience More Value-Added Savings Program (one line starts at $75 per month) and the Loyalty Program (retention offer for loyal customers), which offers one line for $65 per month.
A recent Oxio survey showed that AT&T and T-Mobile are more focused on delivering value, in line with a trend of consumers increasingly seeking more control and transparency when purchasing new cell phone plans.
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about 70% of U.S. consumers review their mobile plans at least once a year.
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Rising costs are a key driver because 58% of consumers say rising bills have prompted them to reconsider their current plans.
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Price is the primary factor 79% Share of consumers choosing new plans, followed by network coverage (63%)speed and performance (60%)and billing transparency(40%).
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Non-traditional mobile providers are gaining traction: 75% of consumers have a positive or neutral view of them, and 56% Would consider purchasing mobile service from a retailer.
Source: Oxio
Oxio CEO Nicolas Girard emphasized in the survey report that maintaining customer loyalty in the wireless market is becoming increasingly difficult.
“Our latest survey shows the market is changing,” Girard said in the survey report. “Consumers are actively evaluating plans, comparing value and reacting quickly to price increases. Switching is no longer uncommon, and the friction that once protected incumbents is disappearing. Loyalty is no longer assumed. It must be earned and re-earned.”
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This article was originally published by TheStreet on March 20, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.