AT&T is making customers angry

AT&T is facing a customer experience (CX) crisis. For starters, recent price hikes have upset customers. While the telecommunicaitons company attracted almost 1 million new phone and internet customers during the last quarter, its postpaid phone churn increased by 14 basis points year over year. While prices continue to increase, the company has shifted its attention. To combat churn, the company is suing T-Mobile for the tactics it is using to lure away customers. 

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In AT&T's most recent earnings call, CEO John Stankey said that competitors, including T-Mobile and Verizon, have been aggressive. In December 2025, T-Mobile launched what its calling the "15 Minutes to Better" campaign. The idea is that AT&T customers can change plans so easily that it can be done in no more than 15 minutes. 

"Consumers looking to switch to T-Mobile can even download the T-Life app and log into their current Verizon or AT&T plan, where they can then select an option called 'Easy Switch,' which will match them with a competitive T-Mobile offer," according to Yahoo! Finance. 

This is what prompted AT&T to respond to its churn problem with a lawsuit against T-Mobile. The company has said that this campaign reflects T-Mobile's "ongoing intrusion into AT&T's computer systems." The lawsuit comes after T-Mobile received a cease and desist letter and continued its pursuit anyway. 

Observing this battle for customers in a vacuum is an error. There is much more to this story. Telecommunications companies have been racing for loyalty for some time now. Recently, phone carriers are offering more generous discounts and unexpected Samsung and iPhone promotions, which is increasing the pressure in an already intense competition for customers. 

In addition, AT&T has been making changes to its policies and prices that are upsetting customers at a time when consumers feel stretched. In these uncertain and inflationary times, price hikes can cause a revolt. 

Specifically, AT&T decreased its autopay discount from $10 to $5 for customers who pay their bill with a debit card. The backdrop for this most recent announcement is that CEO John Stankey  had said that the company would be forced to increase prices to make up for tariffs of U.S. President Donald J. Trump, according to The Street. 

In addition, AT&T Internet and Fiber customers are paying $5 more than they used to pay each month. The company charged $5 more in November 2024, too. This yearly increases can have a big impact. CEOs at companies like Five Below and Target have said that consumers are feeling stretched since 2024. The warning signs about potential trouble remain. 

"Home internet costs have been rising steadily, with no notable improvements in connectivity. According to a study published earlier this year by CNET and the Benton Institute for Broadband & Society, nearly 63% of US adults experienced an increase in their internet bills in 2024," according to PC Magazine. "On average, they paid $195 more than in 2023, and about half still received unreliable connectivity."

Paying more and getting less is riling up customers facing economic uncertainty and inflation since the 2020 Covid pandemic. Earlier in 2025, CX Network covered the customer experience crisis that the Walt Disney Company is facing. Similarly, customers griped that they were shelling out more money for Disney vacations and getting less than they used to. 

It feels like a nickel and dimed situation. Additional fees don't help. They are always an issue and AT&T bills are no exception. 

"AT&T monthly Administrative and Regulatory Cost Fee, which the company claims on its website helps it recover certain expenses to interconnect with other providers and payments of government fees, and costs increased from $3.49 to $3.99 per line," according to The Street. 

With all these increases happening one after another, it's hard for customers to ignore opportunities to change providers when they are making enticing offers. It is also hard to win loyal customers.

Yet, economic headwinds and tariffs put companies in the difficult position of having to balance their need to keep customers satisfied with increasing expenses. For now, there's no end in sight. Business Insider recently reported that Walmart, Nike, Abercrombie & Fitch, and others are saying that prices will continue to increase in 2026. 

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