AT&T just delivered another blow to customers' wallets. The telecom giant confirmed it's raising home internet prices by $5 monthly across all plans starting December 1st - the second consecutive year of identical increases. Despite pulling in $4.9 billion in quarterly profits, the company says "increasing operational costs" justify hitting millions of subscribers with what amounts to a 12-15% annual price bump for most plans.
AT&T just made your internet bill more expensive - again. The Dallas-based telecom confirmed to The Verge it's implementing a $5 monthly increase across all AT&T Internet plans starting December 1st, marking the second consecutive year of identical price bumps. Customer emails began rolling out Thursday with the familiar refrain about "quality service" and "operational costs" that's become standard telecom speak for "we're raising prices because we can." The timing isn't coincidental. AT&T reported $300 million in higher operating expenses last quarter, but that's barely a rounding error against the company's massive profit machine. The telecom giant pulled in $4.9 billion in pure profit during those same three months and $12.3 billion for all of 2024. That's enough to absorb those "increasing costs" several times over without touching customer bills. "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," spokesperson Jim Kimberly told reporters. The statement reads like it was crafted by the same committee that writes airline delay announcements - technically accurate but missing the bigger picture. For customers who've been riding this price escalator, the math is getting ugly. Reddit users report similar $5 increases hit some plans in 2023, meaning longtime subscribers could be facing cumulative increases of $15 monthly over three years. A customer who signed up at $80 monthly in 2022 now pays $85.38 and will soon cross the $90 threshold - a 12.5% increase that far outpaces inflation. The company is trying to soften the blow with autopay discounts that feel more like participation trophies. Customers can save $10 monthly by enrolling in autopay with a bank account or $5 with a debit card, assuming they haven't already claimed these "benefits." It's the classic telecom playbook: raise the headline price, then offer discounts that bring you back to where you started. This pattern reflects broader trends across the telecom landscape, where infrastructure investments in 5G and fiber networks create convenient justifications for regular price increases. But AT&T's timing feels particularly tone-deaf given its recent financial performance. The company's profit margins suggest these increases are more about shareholder returns than operational necessity. There are some exceptions to this latest cash grab. Customers who signed up within the past year get a temporary reprieve, as do households enrolled in AT&T's Access program for low-income families. But for everyone else, December 1st marks another step up the telecom price ladder with no obvious way back down. The move puts AT&T in lockstep with other major internet providers who've discovered that post-pandemic customer retention makes regular price increases relatively painless. When switching providers means dealing with installation appointments, equipment returns, and potential service gaps, most customers just absorb the extra cost and move on with their lives.
