Today, AT&T reported results for the third quarter 2023 and announced that in just three months, it lost 365,00 home phone customers from both voice internet protocol services and its traditional phone service. AT&T also lost 28,000 DSL customers as it transitions away to fiber and 5G home internet.
This all comes as AT&T plans to shutter around half its copper network by 2025, offering customers voice over internet protocols (VOIP), or phone over the internet, as an alternative. AT&T customers can keep their DSL for now, but the company is starting to push alternatives to get them to switch, including its new 5G home internet service called AT&T Internet Air.
Providers like AT&T want to shut down their older copper networks so they can focus on fiber and 5G, which offer higher speeds and are cheaper to operate. This move will help telecom companies save money by running on a more efficient network. Consumers, meanwhile, stand to benefit from better access to faster internet service, with the increased fiber infrastructure also potentially helping with 5G cellular coverage.
During the third quarter AT&T added 296,000 fiber customers and added 468,000 post-paid wireless phone adds.
“Our investments in best-in-class 5G and fiber connectivity are fueling our growth engine. We’re gaining profitable customer relationships and becoming more efficient. This is powering our strong business performance and gives us the confidence to raise our full-year free cash flow guidance,” said AT&T CEO John Stankey. “We are pleased that customers are choosing AT&T and staying with us over the long run as we connect and simplify their digital world.”
Slowly Americans are not just canceling cable TV but also their home phone as they switch to cheaper options or rely solely on their cellphones.
Correction: We have updated the story with the proper number of home phone customers that canceled in the 3rd quarter of 2023.