AT&T sends harsh warning to customers

Core Insights - AT&T and other phone carriers are experiencing increased profits due to a shift in consumer behavior away from traditional cable internet services towards fixed wireless internet options [1][3] Consumer Behavior - An average internet price increase of $20.78 per month in 2024 has led 75% of Americans to cancel, downgrade, or consider switching their internet providers [2] - Only 40.2% of consumers now rely on cable TV companies for internet service, down from 45% in late 2024, while reliance on 5G home internet has risen to 11% from 8.4% a year ago [4] Company Performance - AT&T gained 203,000 new customers for its 5G home internet service and 243,000 new fiber internet customers in the second quarter, contributing to an operating income of $6.5 billion, a 10% increase year-over-year [5] - Despite the growth in demand, AT&T announced a $5 increase in monthly bills for all internet plans starting December 1, 2025, affecting both new and existing customers [6][7]