AT&T adds new $5 monthly fee
Millions of AT&T customers are going to have to pay more for their services yet again. Starting December 1, 2025, AT&T is adding a $5 monthly increase on its internet and some wireless plans as a new policy to cover rising operating expenses and network improvements.
The carrier, which is the third-biggest wireless carrier in the U.S. behind T-Mobile and Verizon, announced its third-quarter earnings call on Wednesday morning. AT&T CEO John Stankey said the company only raises prices when it believes customers are getting more value in return.
“We don’t increase prices just to increase prices,” Stankey said. “We increase prices when we feel we’ve added more value to the customer and attempt to time it to that.”
He referred to significant investments in network infrastructure and the rollout of new wireless spectrum technology as part of AT&T’s efforts to deliver what he called “massively superior performance.”
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The details: What’s going up and when
AT&T customers can expect the new $5 increase to appear on their December bills. The alteration will affect AT&T Fibre and AT&T Internet plans, as well as certain wireless plans.
According to a notice on the company’s website:
“In order to keep delivering to you the quality service you expect, we need to adjust our internet plan prices as our business needs change and costs rise.”
This is the third year in a row of rate hikes. In 2023, certain customers experienced a $5 increase on some home internet plans, and in 2024, the same figure was applied to the majority of internet packages.
AT&T is also adding a $4 monthly administrative fee to some accounts, a step CFO Pascal Desroches stated was needed to counter a drop in the company’s “average revenue per user” because of seasonal trends.
Rising costs and massive investments
AT&T cites the extra fees as being tied to massive investments in network enhancement and new acquisitions meant to improve its coverage and speed.
The company just announced it will invest $5.75 billion to buy Lumen’s Mass Markets fibre business, which should be finalized in early 2026. It’s also finishing up a $23 billion purchase of wireless spectrum licences from EchoStar, which will improve 5G performance and expand availability of its Internet Air service.
These initiatives, while costly, are AT&T’s effort to catch up with its faster-growing rivals, especially since the need for stable internet and 5G connectivity continues to rise nationwide.
Not everyone will pay more
There’s some good news for certain customers. New customers—subscribers who have joined in the last year—and those who are in the Access from AT&T programme for low-income families will not be charged the $5 hike, an AT&T spokesperson said.
In addition, AT&T customers can lower their bills by enrolling in Autopay and Paperless Billing. The company offers a $10 per month discount for clients paying through a qualifying bank account or $5 off for payment using a debit card.
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Customer backlash and frustration
Despite the company’s explanation, the successive price hikes have left numerous customers unhappy. On social media and online communities like Reddit, users denounced what they called “corporate greed”, adding that the higher bills are not indicative of the level of service they receive.
Several studies back up those frustrations. A 2025 report by CNET and the Benton Institute for Broadband & Society found that 63% of American adults saw their internet bills rise last year—by an average of $195 more than in 2023—even though nearly half said their internet remained unreliable.
AT&T’s balancing act
AT&T executives continue to argue the company is attempting to balance affordability with continued investment in the future of wireless and broadband connectivity. The $5 price increase, company officials say, is a necessary piece of the equation.
For millions of Americans already taking in higher costs on everyday services, though, this step will be another squeeze on monthly budgets.
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As one AT&T customer put it online, “They keep saying it’s for better value—but when do we actually see it?”
