AT&T Announces $5 Monthly Hike for Home Internet Plans

AT&T (NYSE: T) said on Friday that it will raise prices for its home internet plans by $5 per month, effective December 1, marking the third straight year of price increases.

The company’s home internet plans currently start at $55 per month, meaning the base rate will rise to $60/month for most existing customers.

Offsetting Costs and Acquisitions

AT&T said the price adjustment is designed to cushion rising operational expenses and offset costs from recent strategic acquisitions — including the purchase of wireless spectrum assets from EchoStar (NASDAQ: SATS) and the buyout of Lumen Technologies’ (NYSE: LUMN) consumer fiber business.

Exemptions and Rationale

The telecom giant clarified that customers who signed up in the past year and low-income households enrolled through its Access from AT&T program will not be affected by the increase.

“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,” said AT&T spokesperson Jim Kimberly in a company statement.

Industry Context

The rate increase comes as major U.S. telecom providers continue to balance infrastructure investments — particularly in fiber broadband and 5G spectrum — with rising capital costs. Rivals like Verizon (VZ) and Comcast (CMCSA) have also adjusted pricing this year amid inflationary pressures and competitive broadband rollouts.