AT&T rolls out major upgrade for customers as it rivals T-Mobile

The wireless market is rapidly evolving as carriers double down on attracting and retaining price-conscious customers. 

In response, AT&T, struggling with rising customer losses, has made a bold upgrade to a digital service for customers – a move that gives T-Mobile a run for its money.

Over the past few months, T-Mobile has been enforcing a “digital transformation” that aims to make customers more dependent on its T-Life app for significant account changes, such as phone upgrades and adding new lines, etc. It also involves further simplifying the customer experience by exploring artificial intelligence capabilities. 

For example, in December, T-Mobile rolled out a digital switching tool called “Easy Switch” on its T-Life app and website. 

The tool, which uses AI, pairs consumers from rival carriers with competitive offers and lets them switch to its network digitally in 15 minutes or less, minimizing the need for customer service assistance.

By 2027, T-Mobile expects to shore up $3 billion in savings from its artificial intelligence and digital initiatives.

At a UBS conference in December, AT&T CEO John Stankey said the company will follow T-Mobile’s lead by not only developing its own digital switching tool for customers (expected to launch sometime this year), but also enhancing the overall digital customer experience. 

He said that customers will soon have “far more choices about how they do things digitally,” which will benefit the company as “it will take friction out of things.”

“Customers impart on us their experiences with other industries and services,” said Stankey. “And they like having digital experiences.”

AT&T upgrades the customer digital experience, challenging T-Mobile

Now, AT&T is laying the groundwork for this change. The carrier has announced that it is “simplifying its digital experience” by launching a new app for customers that is “built around a GenAI assistant,” according to a recent press release. 

AT&T states that the new app “provides a one-stop shop” for wireless and internet customers, making it “easier to manage all services.”

The app includes several features, such as advanced device controls and internet backup access. 

Related: AT&T drops 3 new phone plans to keep customers from switching

Customers can even group devices under their account by person or purpose, manage them together and stop or restore their service when needed. They can even set and customize daily downtime schedules for devices.

The app also includes “upgraded shopping,” which lets customers shop for the latest devices and plans, and find the closest AT&T store.

They can also use an AI-powered assistant within the app to get expert advice on shopping or customer support needs. Additionally, customers can view more usage details for calls, texts and data, and will encounter a redesigned message center that shows all AT&T notifications, texts and emails in one place.

“Millions of customers already rely on our apps every month to manage their AT&T experience,” said Kellyn Kenny, chief marketing and growth officer at AT&T, in the press release. “That scale created an opportunity for us to think bigger: to build a single flagship app that brings services together in one place.

“The new AT&T app is designed around our customers’ lives, not just their bills, making it faster and easier to manage services, shop, get support when needed, and stay connected to what matters most,” she added.

AT&T has launched a new app to rival T-Mobile’s T-Life.

AT&T/Daniel J. Macy

AT&T faces rising customer losses as rivals gain ground

The move from AT&T comes shortly after it introduced three new phone plans aimed at consumers seeking more value. 

The new app debut also comes at a time when the carrier is struggling to keep its phone customers from jumping ship, following several billing changes in 2025 that sparked frustration. This includes shrinking its autopay discount for select customers and raising a key monthly billing fee. 

More Telecom News:

T-Mobile drops 2 new phone plans to stop customers from fleeingVerizon CEO shifts gears after 2.25 million customers departAT&T closes billion-dollar acquisition to win back customers

AT&T’s postpaid phone churn, the percentage of customers who canceled their phone service, rose to 0.98% in the fourth quarter of 2025, up from 0.85% in the same period a year earlier, according to the company’s most recent earnings report. 

Meanwhile, 255,000 prepaid phone customers canceled service during the quarter, pushing churn in that segment to 2.89%, an increase of 0.16% year over year. 

It is vital for AT&T to double down on improving customer experiences, as it falls behind its top rivals in consumer satisfaction, a recent J.D. Power study found. 

How the big 3 phone carriers rank in consumer satisfaction:The average consumer satisfaction score for postpaid plans among traditional carriers is 603 (on a 1,000-point scale).T-Mobile leads the segment with a satisfaction score of 631, followed by Verizon at 593.AT&T ranks third among traditional carriers with a score of 587.MVNOs outperform many traditional carriers, posting an average satisfaction score of 630 for postpaid phone plans.
Source: J.D. Power 

“Attracting customers with network quality and pricing is just the first step,” said Carl Lepper, senior director of technology, media and telecom at J.D. Power, in a press release. “True loyalty comes from how easy it is for customers to work with a carrier once they’re in the system, especially when it comes to resolving issues, managing bills and getting answers quickly. 

“These experiences drive advocacy and long-term retention,” he continued. “When interactions are effortless, it shows in low churn and high satisfaction. For wireless carriers, the best strategy is simple: take care of the customers they already have.”

To stay competitive in a rapidly evolving industry, AT&T also recently announced it will spend more than $250 billion over five years to enhance and expand its fiber and wireless network coverage to over 100 million customers.

Industry analyst Jeff Kagan emphasized in a recent press release that it is crucial for telecom companies such as AT&T to remain innovative amid intensifying industry competition.

“The ways we connect have always been evolving,” said Kagan. “In the next chapter of this story, AI will play a major role. And it is not only AT&T that must make this kind of network investment. All of their competitors, new and old, large and small, must take this same path.”

Related: T-Mobile customers set to receive a significant network upgrade

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