AT&T increasing prices for wireless plans, here’s who will be impacted

AT&T will increase the price of some legacy plans for first time since years. According to a new report from Bloomberg, the pricing for single-line individual plans will increase by $6 per month, while the prices for family plans will increase to $12 per month. The price increases, however, apply only to older plans, not the carrier’s newest Unlimited plans.

AT&T price increase on the way

AT&T announced the price increases in a statement. It said that customers should consider changing to older plans, which are often available at lower monthly costs. This marks the third time that AT&T has raised prices for legacy plans in the last three years.

Again, the price increases do not apply to the company’s latest lineup of Unlimited plans, which start at $85 per month for individuals. Prices for family plans are determined by the number of people. Instead, the price rises are directed at those who do not have Unlimited.

“We are encouraging our customers to explore our newer plans which offer many additional features, more flexibility for each line on their account and, in many cases, a lower monthly cost,” the carrier said Tuesday in an emailed response to questions.

AT&T have been alerting investors about inflationary pressures. On an earnings call last month, Chief Executive Officer John Stankey said rising wages could add about $1 billion to the company’s overhead this year.

Employees at AT&T retail stores were notified of this change this week, with instructions to tell customers to “call the company’s consumer service line for help on choosing new plans.”

9to5Mac’s Take

AT&T believes that customers who are affected by price hikes will choose to either pay more for convenience or upgrade to an Unlimited plan. Whether or not the strategy works remains to be seen, but most users are historically quite loyal to their carriers.

Bloomberg notes that the COVID-19 pandemic led to “record low churn rates” for the wireless industry,” though churn rates have always been relatively low for these companies due to enticing promotions for free devices and long-term payment plan discounts.

Many customers who might consider switching may also be locked into AT&T’s ecosystem because of a device payment plan of some sort. These customers would need to clear the balance remaining on their phones before they could switch or unlock their phone.

Are you an AT&T subscriber affected by these price increases? Are you planning to switch carriers? Let us know down in the comments.