AT&T is seeing more consumers switch carriers amid elevated competition. In recent months, it has seen a higher percentage of loyal phone customers cancel service.

Amid these challenges, the carrier has added three new phone plans to attract new customers and help discourage loyal ones from looking elsewhere. 

In the fourth quarter of 2025, AT&T saw its postpaid phone churn, the percentage of customers who disconnected their phone service, reach 0.98%, according to its latest earnings report. This is higher than the 0.85% it reported for the same quarter in 2024. 

Also, AT&T lost 255,000 prepaid phone customers during the quarter, pushing churn in its prepaid business to 2.89%, up 0.16% year over year. 

During an earnings call in Janurary, AT&T CEO John Stankey acknowledged that “switching activity” in the wireless industry was elevated in 2025, and that “macro factors” are leading to slow customer growth in the traditional postpaid phone market. 

The customer losses follow AT&T’s decision in April last year to lower its autopay discount from $10 to $5 for customers who pay their monthly bill with a debit card, which sparked backlash. It also completely scrubbed that discount for customers who pay by credit card.

AT&T also received blowback last year for allegedly blindsiding phone customers with higher-than-expected monthly bills after luring them from rival carriers with steep discounts. 

In December, AT&T even increased its Administrative & Regulatory Cost Recovery fee from $3.49 to $3.99 per line, a charge that phone customers pay on their monthly bills.

AT&T rolls out three new phone plans as customers switch carriers

More consumers nationwide have been switching carriers as they hunt for more affordable phone plans. Some have even been exploring wireless service options from MVNOs and cable companies that offer phone service as part of bundled packages. 

A survey from WhistleOut last year found that AT&T risks losing 64.9 million customers due to high mobile plan pricing. 

To help lock in price-conscious customers, AT&T has revamped its wireless plan offerings by launching three new “2.0” plans, which the carrier calls its “Unlimited Your Way” lineup, according to a recent press release. 

This includes: AT&T Value 2.0, AT&T Extra 2.0 and AT&T Premium 2.0. The carrier claims that customers can get “real value” with these new offerings “without having to choose the highest-priced plan.”

AT&T has revamped its wireless plan offerings amid elevated churn.

Jonathan Weiss/Shutterstock

AT&T Value 2.0 starts at $50 a month for one line, and the price per line decreases by $5 for each additional line added to the plan. This plan offers customers AT&T ActiveArmor security (a free app to help block spam calls and texts), 3GB of hotspot data per line and SD streaming.

The next tier, AT&T Extra 2.0, starts at $70 a month for a single line. The monthly price per line decreases by $10 for each additional one added under the plan. This tier offers customers 100GB of high-speed data, AT&T ActiveArmor security, 50GB of hotspot data per line and SD streaming. 

AT&T Premium 2.0 offers a single line for $90 a month. For two lines, the price is $80 per line; for three, $65 per line; and for four, $55 per line. 

Related: AT&T to launch new service for customers as it takes on T-Mobile

This plan includes Unlimited high-speed data, AT&T ActiveArmor security, 100GB of hotspot data per line and 4K UHD streaming. It also offers free unlimited talk, text and high-speed data in 20 Latin American countries.  

All three plans have lower starting prices than the previous Unlimited plans. AT&T Unlimited Starter offered a single line for $66, while one line on Unlimited Extra and Unlimited Premium was $76 and $86, respectively.

“Customers have been clear: they want simple plans, features that matter, and real value. That’s what Unlimited Your Way delivers,” said Jenifer Robertson, executive vice president of Mass Markets at AT&T, in the press release. “We’re giving customers what they want with choice and reliability, all backed by the AT&T Guarantee.”

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  • AT&T closes billion-dollar acquisition to win back customers

New Street Research analyst Dave Barden said in a research note, which was viewed by Light Reading, that AT&T’s wireless plan revamp is the carrier’s way of encouraging customers to upgrade to higher plan tiers; however, this risks having an opposite effect.

“AT&T’s goal is to incentivize customers on their lowest tier to upgrade to the middle tier as the gap between the lowest tier and the middle tier is less now,” wrote Barden in the research note. “There are some risks of cannibalization among customers on the highest tier that may downgrade to the middle tier.”

AT&T battles T-Mobile as consumers seek value

The move from AT&T comes after T-Mobile launched its “Better Value” phone plan in January, which starts at $140 a month for three lines with autopay, meaning each line is $46 for families.

Additionally, T-Mobile quietly rolled out two new phone plans for eligible customers in February. This includes its Experience More with Appreciation Savings plan, which starts at $75 per month for one line, and its Loyalty Plan (a retention offer for loyal customers), which offers a single line for $65 per month.

AT&T and T-Mobile’s sharper focus on offering value aligns with a growing trend in which consumers are increasingly looking for more control and transparency when shopping for new phone plans, according to a recent Oxio survey. 

What’s driving U.S. consumers to rethink their mobile plans:

  • About 70% of U.S. consumers review their mobile plan at least once per year.
  • Rising costs are a key driver, as 58% of consumers said bill increases prompt them to reconsider their current plan. 
  • Price is the top factor for 79% of consumers when selecting a new plan, followed by network coverage (63%), speed and performance (60%), and billing transparency(40%). 
  • Nontraditional mobile providers are gaining traction: 75% of consumers view them positively or neutrally, and 56% would consider buying mobile service from a retailer.
    Source: Oxio

Oxio CEO Nicolas Girard emphasized in the survey release that customer loyalty is becoming harder to maintain in the wireless market. 

“Our latest survey shows a market in motion,” said Girard in the survey release. “Consumers are actively evaluating plans, comparing value and reacting quickly to price increases. Switching is no longer rare, and the friction that once protected incumbents is fading. Loyalty can no longer be assumed. It must be earned and re-earned.”

Related: T-Mobile customers set to receive a significant network upgrade