Feeling the pinch? Your internet bill is likely about to jump again. AT&T is implementing yet another price hike for home internet, and if you're a customer, you're probably feeling frustrated. This marks the second consecutive year of price increases, leaving many wondering where it will all end.
Sean Hollister, a senior editor at The Verge with a long history covering consumer tech at CNET, Gizmodo, and Engadget, broke the news. According to Hollister, AT&T is bumping up the price of all its internet plans by $5 per month.
But here's where it gets controversial... This isn't a one-off. This latest increase follows a $5 per month hike in November 2024. And, based on reports from users on Reddit (and AT&T didn't deny this), some customers may have even seen a similar $5 increase back in 2023! Are these increases justified, or is AT&T taking advantage of its customer base?
Hollister himself received an email stating: "To ensure we continue providing the quality service and support you deserve, the price of your home internet plan will increase by $5/month, starting December 1, 2025." A company spokesperson, Jim Kimberly, confirmed that this email is going out to a wide range of customers.
So, what's AT&T's justification for raising prices yet again? Kimberly provided the following statement: "As we work to meet the evolving needs of our business and manage increasing operational costs, we’re adjusting our internet plan rates to help maintain the high-quality service our customers expect. We’re committed to keeping customers informed about these updates and their choices. To help offset these changes, customers who have not already enrolled in Autopay and Paperless Billing can receive a $10 monthly discount by enrolling with an eligible bank account, or a $5 discount with a debit card. Customers can review all details regarding their plan and associated fees on their monthly statements or by visiting att.com."
It's true, AT&T reported a $300 million increase in operating expenses last quarter. But and this is the part most people miss... let's put that into perspective. During that same three-month period, AT&T raked in a whopping $4.9 billion in pure profit! And for the entire year of 2024, that profit soared to $12.3 billion. So, are rising operational costs really the driving force behind these price increases, or is something else at play?
There is some good news, though. Kimberly clarified that the price increase won't affect customers who signed up within the last year, or those participating in the Access from AT&T program, which provides low-cost internet access to eligible households. This is a welcome relief for those on fixed incomes or who recently became AT&T customers.
Hollister, who signed up with AT&T in 2022 for around $80 a month and currently pays $85.38, anticipates his bill will soon exceed $90. He even shared a screenshot of the email he received, a visual reminder of the unwelcome news.
What do you think about AT&T's repeated price hikes? Are they justified given the company's profits? Will you be switching providers, or are you willing to pay the extra $5 a month? Share your thoughts and experiences in the comments below!
