Over the past few months, AT&T (T) has made significant adjustments to its pricing, which has frustrated a few of its customers.
Last year in August, AT&T increased the monthly price for most of its retired unlimited wireless plans by $10 for customers with one phone line and $20 for customers with multiple lines.
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In November, AT&T also hiked the monthly price for its fiber and internet plans by $5. Also, in April this year, AT&T even decreased its autopay discount from $10 to $5 for phone and internet customers who pay their bills with debit cards.
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Those who pay their bills with credit cards had their autopay and paperless billing discount completely removed.
Amid these changes, AT&T revealed in its first-quarter earnings report for 2025 that it generated a net income of $4.7 billion during the quarter, which is 19% higher than what it earned during the same quarter in 2024.
It also added 324,000 new postpaid phone customers and 261,000 new fiber internet customers during the first few months of the year.
AT&T makes unexpected move to lure customers from competitors
As AT&T sees higher profits and welcomes thousands of new customers, the phone carrier has made a bold move to attract an older group of customers who may have been discouraged by recent price increases.
The phone carrier has introduced its AT&T 55+ Plan, in which customers 55 years old and older are offered one phone line for $40 a month and two phone lines for $35 a month, with autopay and paperless billing discounts activated.
The plan includes unlimited talk, text, and data in and between the U.S., Canada, and Mexico. It also offers 10GB of Hotspot Data and AT&T ActiveArmor, which offers 24/7 security to help stop spam/scam calls and texts.
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“Our customers remain at the center of everything we do. By listening to their needs and challenges, we recognized their growing desire for reliable and affordable connectivity — all delivered with ease,” said AT&T Mass Markets Executive Vice President Jenifer Robertson in a press release.
AT&T's newest plan for seniors comes at a time when one of its main competitors, T-Mobile, is offering customers who are 55 years old and older one phone line for $40 a month and two phone lines for $60 a month (with autopay enabled) through its Essentials Choice 55 plan.
Verizon also offers a senior phone plan, but it is only for Florida customers. Through its 55+ Senior plan, customers can purchase one phone line for $62 a month or two phone lines for $84 a month.
AT&T CEO recently warned customers of a harsh change
The move from AT&T also comes after its CEO recently issued a stern warning about the company’s future phone prices, which President Donald Trump’s tariff policy will impact.
In April, Trump imposed a 10% baseline tariff on all countries and paused reciprocal tariffs. The pause will end in July, resulting in roughly 60 countries seeing higher tariff rates. This will likely cause U.S. consumers to see increased prices for everyday goods.
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During an earnings call on April 23, AT&T CEO John Stankey said that tariffs can negatively impact several devices the company sells.
“The announced tariffs could potentially increase the cost of smartphones and other devices, as well as the cost of network and technical equipment,” said Stankey. “The magnitude of any increase will depend on a variety of factors, including how much of the tariffs our vendors pass on, and the impact that the tariffs have on consumer and business demand.”
He also warned that AT&T may have to raise prices for its devices due to Trump’s tariffs.
“So I think that if ultimately costs are passed to us from those that we buy handsets from, unfortunately for the customer, we’re going to have to come up with some new ways for them to figure out how to digest that increase in pricing,” Stankey said.
Related: AT&T quietly issues stern warning to customers
