Skip to main content

AT&T is struggling against T-Mobile’s onslaught

AT&T is struggling to attract more all-important postpaid customers than its competitors, according to its latest financial report. While it added 2.8 million new wireless customers in the last three months overall, only 526,000 of them were postpaid, down more than 38-percent from the year before. It’s these customers that are considered the bread and butter of the wireless industry, as they pay a flat rate for texts, calls, and data each month.

Worse still, AT&T was the only carrier to lose postpaid customers, according to BTIG analyst Walt Piecyk. Arch rival T-Mobile, for example, added 917,000 postpaid phone customers, or 1.3 million in total, during the same period.

Recommended Videos

T-Mobile is well known for its aggressive pricing and promotional activities. For a while now, it has been tempting AT&T and Verizon customers away with discounts on iPhones, a free year of Hulu, and cheaper contracts. Not to be left out, Sprint also joined the battle with its half price deal, which it extended earlier in the month. It’s not surprising AT&T has had a difficult few months. The affect of this has lowered the company’s wireless revenue to $18.9 billion, a nearly 5-percent fall from the same period in 2014.

AT&T’s not giving up, and there are some bright spots in its report. It added 469,000 prepaid customers in the fourth quarter, the highest out of all four major carriers. That took the total to 1.4 million for the full year, split between AT&T’s subsidiaries Cricket and GoPhone. It also has a new weapon to take on the T-Mobile threat, and pull back some postpaid customers — the revival of its unlimited data plans. Apparently, 500,000 eligible customers have already signed up.

Finally, it has also added a million connected car installations, showing its push into the automotive world is really taking off. It plans to connect 10 million cars in the next five years, thanks to a new partnership with Ford.

David Curry
Former Digital Trends Contributor
David has been writing about technology for several years, following the latest trends and covering the largest events. He is…
T-Mobile crushed its rivals in this important test
A person playing a game on the Asus ROG Phone 9 Pro.

In the U.S., the top carriers don't offer the same network performance. One carrier has significantly outperformed the others over the past six months, according to data collected in network and connectivity expert Ookla's latest "Speedtest Connectivity Report." The report, which covers data collected between July and December 2024, found that T-Mobile, the third-largest carrier in the U.S., has emerged as the clear leader in overall performance. The differences are striking.

Ookla reports that T-Mobile provides media download speeds 120% faster than its closest competitor, AT&T. Verizon, the largest carrier by subscriber count, ranked third. These speeds are enough for Ookla to conclude that T-Mobile offers the best mobile gaming experience.

Read more
T-Mobile’s long-awaited satellite service is finally ready for testing
Texting over T-Mobile direct-to-cell satellite network on a phone.

T-Mobile pledged to “end mobile dead zones” all the way back in 2022, thanks to a deal with SpaceX that would entail using Starlink satellites to enable communication across the entirety of the country. In September this year, the carrier successfully relayed a satellite-driven emergency alert to assess the service.

Now, T-Mobile seems ready for real testing.

Read more
T-Mobile has completely revamped its 5G home internet plans
Cell phone tower shooting off pink beams with a 5G logo next to it.

As we approach the new year, T-Mobile has announced significant updates to its 5G home and small business internet plans. The new plans start at $35 per month for customers who sign up for AutoPay and have a voice line. Overall, they are slightly less expensive than current plans.

First up is the T-Mobile Rely Internet plan that offers essential home Wi-Fi services at a competitive monthly rate backed by a Price Lock guarantee. The T-Mobile Amplified Internet plan provides faster internet speeds, along with advanced cybersecurity for home users or a mesh device for small business customers.

Read more