AT&T introduces fibre plans up to 5 Gbps to stem churn amid broadband war
Postpaid phone churn rises to 0.89 per cent in the first quarter of 2026, prompting CEO John Stankey to double down on converged wireless and internet services.
AT&T has launched four new fibre internet plans offering speeds from 300 Mbps to 5 Gbps, a strategic move designed to retain subscribers in a broadband market defined by intensifying competition. The new tiers become available for sign-up from 7 June 2026, with the entry-level 300 Mbps plan starting at $50 per month with autopay discounts. When bundled with wireless service, the price drops to $35.
The rollout comes as AT&T navigates a challenging competitive landscape. In the first quarter of 2026, the company added 584,000 internet customers, yet it faced aggressive moves from rivals. T-Mobile attracted over 500,000 new subscribers during the same period, while Verizon gained 341,000. Verizon’s acquisition of Frontier for $20 billion in January has further expanded its fibre footprint, allowing it to offer more bundled mobile and internet services. T-Mobile also recently upgraded its fibre plans in April, introducing lower starting prices and increased value.
Beyond traditional fixed-line rivals, AT&T is contending with the growing threat of satellite internet providers. SpaceX’s Starlink has attracted more than 9 million customers since its 2019 launch, and Amazon is expected to offer high-speed satellite internet through its Leo service later this year. A recent survey by CableTV.com indicated that AT&T’s internet service trails these competitors in customer loyalty, scoring 79 per cent compared to Starlink’s 91 per cent. The survey suggested that consumers increasingly prefer smaller providers for their reliability and flat-rate pricing, often tolerating national incumbents only when necessary.
To address these pressures, AT&T is focusing on convergence. CEO John Stankey stated during an April earnings call that the company would double down on offering bundled wireless and internet services to curb elevated churn. The company’s postpaid phone churn rate rose to 0.89 per cent in the first quarter of 2026, up from 0.83 per cent in the same period the previous year. Stankey noted that more variants of the OneConnect plan, which bundles wireless and fibre for $90 per month, would be introduced throughout the year.
The new fibre lineup includes 500 Mbps and 1 Gbps options priced at $65 and $80 per month respectively, with bundled discounts reducing those costs to $50 and $60. The highest tier, 5 Gbps, is priced at $125 per month, or $100 when bundled, and includes All-Fi Pro equipment and free internet backup for qualifying services. AT&T describes the new entry-level plan as three times faster than its previous offering, part of a broader effort to simplify pricing and align customers with asset-based services.
