AT&T Inc. shares advanced 1.6% to $25.33 in late trading Thursday, outperforming rival carriers Verizon and T-Mobile, after the company unveiled a low-cost customizable wireless plan and escalated efforts to shut down its aging copper network in California.
The new Build-A-Plan service, launching May 27, starts at $15 per month plus taxes and fees for a single line with unlimited talk and text and 1GB of data. Customers can adjust features monthly and must use an unlocked eSIM-compatible phone. AT&T says this is the lowest entry price among major carriers, targeting budget-conscious subscribers without igniting a price war.
AT&T CEO John Stankey reinforced the strategy at a J.P. Morgan conference this week, stating that the best returning networks are those that are full. The company aims to boost usage and attract a broader customer base to its existing infrastructure, rather than chasing premium pricing.
In a separate regulatory push, AT&T filed a lawsuit against California regulators on Wednesday seeking permission to stop adding new customers to its copper-wire phone service. The carrier argues that state rules force it to spend roughly $1 billion annually maintaining century-old copper lines that now serve only 3% of California households on its network.
To counterbalance the copper exit, AT&T announced a $19 billion investment commitment in California fiber and wireless networks through 2030. The plan includes extending fiber to over 4 million additional homes and businesses and adding more than 1,200 new cell sites. AT&T California president Susan Santana described it as the company's largest-ever investment pledge in the state, assuring that phone and 911 services will remain operational during the transition.
Investors are weighing the potential downside of the $15 plan, which could pressure average revenue per user (ARPU) if customers remain on the base tier without add-ons. The California legal battle also poses a risk: any delays in the copper shutdown could saddle AT&T with ongoing maintenance costs for a shrinking user base.
On the financial front, AT&T reported first-quarter revenue of $31.5 billion and free cash flow of $2.5 billion. Management reaffirmed its outlook for over $18 billion in free cash flow by 2026, an annual dividend of $1.11 per share, and approximately $8 billion in share buybacks.
Thursday's share move reflects cautious optimism, but the market is watching closely to see if Build-A-Plan can attract new subscribers without triggering a discount war with Verizon or T-Mobile. The California regulatory outcome will also be a key factor in determining whether AT&T can achieve the cost savings it projects.
