AT&T is doubling down on bundled phone and internet services to combat rising customer churn. The carrier added 421,000 postpaid phone customers last quarter but saw churn climb to 0.98%, its highest level in years. Prepaid losses totaled 255,000 subscribers.

The strategy comes after controversial pricing moves, including cutting autopay discounts and raising fees. AT&T’s average customer now pays $153 per month, driving 34% to consider switching carriers. In contrast, smaller providers like Consumer Cellular scored higher in satisfaction surveys.

Executives say bundling with AT&T Fiber—which gained 283,000 users last quarter—boosts subscriber retention. The company aims to expand fiber by 5 million locations annually through 2030. Analysts warn that while bundling may slow churn short term, long-term success hinges on pricing discipline amid fierce competition.