AT&T CEO hopes new offers will restore customer loyalty

AT&T is facing challenges in its wireless business as customers are increasingly looking for more affordable alternatives. With a rise in churn rates, the company is implementing new strategies to attract and retain customers.

In the first quarter of 2026, AT&T saw an increase in postpaid phone churn, with 0.89% of customers canceling their service compared to 0.83% in the same period last year. The carrier also experienced a rise in churn in its prepaid phone business, reaching 2.62%.

To combat this trend, AT&T is focusing on offering converged phone and internet services to its customers. By bundling these services, the company aims to reduce churn and increase customer retention. CEO John Stankey believes that this strategy will help align customers with the company’s assets and improve the churn dynamic.

AT&T has been expanding its converged offerings and plans to increase its fiber internet footprint by 5 million locations each year. The company recently acquired Lumen’s Mass Markets fiber business, enabling its fiber internet service to be available in 32 states.

One of AT&T’s new offerings is the OneConnect subscription, which combines wireless and fiber internet services starting at $90 per month. This plan targets customers who prefer to keep their devices longer and offers a network construct to reduce churn.

Analysts have expressed concerns about AT&T’s strategy, noting that competition from cable operators and standalone offerings could affect the success of the company’s converged plans. However, consumer preferences for bundled mobile and internet services indicate a growing demand for cost-effective and comprehensive connectivity solutions.

As AT&T continues to focus on offering converged services, CEO John Stankey is optimistic that the company will reach a tipping point where the benefits of the strategy will outweigh the challenges. By attracting new customers with one to two-line accounts, AT&T aims to build long-term relationships and drive future growth.

Overall, AT&T’s new strategy is designed to address the changing landscape of the wireless industry and meet the evolving needs of customers. By leveraging converged offerings and expanding its fiber internet footprint, the company is positioning itself to reduce churn and maintain its competitive edge in the market.