AT&T is starting off the new year with an eyebrow-raising move to attract consumers. This comes at a time when it faces heightened competition and is seeing an uptick in phone customers cutting service following controversy over its pricing. 

During the third quarter of 2025, AT&T saw its postpaid phone churn (the amount of customers who disconnected their phone service) increase by 14 basis points year over year, reaching 0.92%, according to the company’s latest earnings report.

AT&T CEO John Stankey said during an earnings call in October that the company’s competitors, such as T-Mobile and Verizon, have been “pretty aggressive” with their tactics to attract new customers. 

“It’s been competitive,” said Stankey. “It continues to be competitive. There are shifts in tactics all the time that occur in this market, and we’re in a cycle right now that, because of the maturity level, tactics have shifted.”

AT&T’s increased customer losses follow a recent survey from J.D. Power, which found that the company lags behind its top competitors in consumer satisfaction rates for its postpaid phone plans.

Phone carrier consumer satisfaction rates for postpaid phone plans:

  • The average consumer satisfaction score for postpaid plans under mobile network operators is 593 (on a 1,000-point scale)
  • T-Mobile ranks the highest with a satisfaction score of 636. 
  • Verizon takes second place with a 583 score. 
  • AT&T falls behind Verizon with a satisfaction score of 573.
    Source: J.D. Power 

“The findings show that value is the most important driver of the overall experience, followed closely by service quality,” said Carl Lepper, senior director of technology, media and telecom at J.D. Power, in a press release.

AT&T lost an alarming amount of phone customers during the third quarter of 2025.

Jonathan Weiss/Shutterstock

AT&T will soon roll out a new service for customers

To help keep pace with its competitors, AT&T plans to sweeten the deal for its phone customers by launching a limited beta program during the first half of this year. The program will grant select customers and FirstNet users early access to satellite-based cellular service, according to a recent press release. 

Since 2024, AT&T has been collaborating with AST SpaceMobile to develop a satellite cellular service for customers that will provide coverage in areas traditional cell towers are unable to reach, especially in remote or off-grid locations.

AT&T plans to launch this service commercially after its beta program rolls out this year. 

The move from AT&T follows the launch of AST SpaceMobile’s first next-generation BlueBird 6 satellite last month, which AT&T claims is “a step closer” to making broadband satellite connectivity available to its customers.

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Currently, AST SpaceMobile has six satellites in orbit, and it plans to deploy four additional satellites by March. 

AT&T claims that its satellite cellular service will provide “better coverage, better performance, and longer battery life” for connected devices, as AST SpaceMobile’s satellites feature the most extensive active commercial antenna array in low Earth orbit.

Last month, AT&T tested this service with several public safety agencies, including the U.S. Customs and Border Protection, the Texas Department of Public Safety, and the Boulder County Sheriff’s Office in Colorado.

These departments had access to voice and data connections, as well as FirstNet Fusion (an upcoming service that connects first responders across any radio system or U.S. wireless carrier) via satellite.

AT&T follows T-Mobile amid a growing consumer trend

The upcoming rollout of AT&T’s satellite service will follow T-Mobile’s launch of T-Satellite in July last year, which is its direct-to-cell satellite messaging service developed in partnership with Starlink. 

Via over 650 Starlink satellites, T-Satellite provides extended coverage to more than 500,000 square miles of U.S. territory that traditional cell towers can’t reach.

It allows users to send and receive text messages and share their location in areas where cellular coverage is unavailable. T-Satellite users can even send pictures and voice messages on select Android devices and will later have the ability to make video calls. 

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Non-T-Mobile customers can subscribe to T-Satellite for $10 a month. Also, anyone with a compatible phone (including Verizon and AT&T customers) can sign up to access T-Satellite’s 911 emergency texting feature for free. 

Verizon has also launched its own satellite service for its customers. In March last year, it introduced its free satellite messaging service; however, it is only compatible with select Android phones, such as the Samsung Galaxy S25 or the Google Pixel 9.

Phone carriers are rapidly developing satellite cellular services at a time when many consumers, especially those who travel, have become increasingly interested in acquiring a smartphone with satellite connectivity capabilities for safety reasons, according to a recent survey from travelers’ insurance company Global Rescue. 

How consumers feel about satellite-enabled smartphones:

  • Over 30% of travelers plan to buy satellite-enabled smartphones soon for enhanced safety and security, while 10% are already using one.
  • Also, 82% of travelersfeel safer with satellite communications, due to its emergency capabilities.
  • A total of 49% of travelers say that the ability to call for help out of cellular range is a top reason for their interest in satellite-enabled phones. 
  • Moreover, 37% said that satellite-enabled smartphones would help calm the anxiety of family and friends, offering a safety net for all involved.
    Source: Global Rescue

“Having a reliable way to communicate during emergencies, even in the most remote corners of the world, offers peace of mind,” said Harding Bush, associate director of security operations at Global Rescue, in the survey.

“Whether facing a medical crisis or an unexpected natural disaster, the ability to alert emergency services could be life-saving,” he said.

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