AT&T Customers Remaining Loyal as Verizon and Sprint Gain iPhone

[MacRumors]

MarketWatch reports on comments from AT&T executive Glen Lurie noting that the carrier's churn rate has remained steady since Verizon and Sprint began offering the iPhone earlier this year. Some observers had expected that AT&T might experience a significant amount of customer defection once it lost iPhone exclusivity in the United States, as the carrier has been the target of a number of complaints about network coverage and other issues.

"Churn has not moved at all," said Glen Lurie, president of emerging devices for AT&T. Churn refers to the number of customers who cancel services.

Lurie said the carrier's relationship with Apple Inc. AAPL +0.06% , maker of the iPhone, has been positive, and they've had record-breaking sales of the latest iPhone 4S which has led to some supply issues. U.S. consumers are looking at a week to two week wait times to get the latest iPhone 4S from AT&T, he said.

AT&T continues to hold several advantages over its rivals when it comes to the iPhone, with one of the major ones being network data speed. With the iPhone 4S supporting HSPA+ technology, AT&T can offer significantly faster speeds for the iPhone than Verizon and Sprint can on their CDMA networks. Sprint users in particular have complained of very slow data speeds on the iPhone 4S so far.

As the only GSM-based iPhone carrier in the United States, AT&T is also able to offer the iPhone 3GS free on contract, while Verizon and Sprint start with the $99 8 GB iPhone 4 as their low-end devices. While the pricing difference becomes negligible once the total cost of a two-year service contract is accounted for, customers are still attracted to the low upfront cost of the iPhone 3GS, as evidenced by the fact that it remained the second best-selling smartphone in the U.S. behind the iPhone 4 heading into the iPhone 4S launch.

While a loss of iPhone exclusivity has apparently proven to not be an issue for AT&T's customer retention, the expansion to Verizon and Sprint has had an effect on the one major U.S. carrier still not offering the iPhone: T-Mobile USA. That carrier noted as part of its earnings discussion last week that customer churn due to the iPhone continues to be an "area of concern" for T-Mobile.

Article Link: AT&T Customers Remaining Loyal as Verizon and Sprint Gain iPhone

 

[*LTD*]

"Dumb Pipe is able to foster brand loyalty."

Strange times we live in, but there you have it.

 

[charlesdayton]

I have been with them since the beginning of Cingular. Never had a problem with the service and my current plan fits my needs, so personally I have no reason to switch.

 

[noTe on iPhone]

I was with AT&T since the first iPhone and finally was able to switch to Verizon with the 4S.

The reception difference was noticable the first day I switched to Verizon. I had no reception at my home and now I have no issues at all. I don't live in a country area either.

 

[xxBURT0Nxx]

I really want to ditch ATT, just can't decide if the other carriers will be better enough to warrant my ~$150 ETF at this point. Still debating whether to ride it out until the iPhone (6) or if I should just jump ship to vzw or sprint now and get a 4S.....

Any customers with sprint or vzw that can chime in on improved call quality and signal strength in the Denver/Metro area?

 

[daxomni]

Apple's refusal to support T-Mobile's 3G bands or to sell at a price and volume they can actually afford seems to be working out very well for AT&T. Bravo Apple. Yet another game changing move. First we lose our unlimited data plans and now we're about to lose our fourth national carrier service. Thanks?

 

[Macinthetosh]

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Also, AT&T allows simultaneous voice and data. This is huge when talking and looking something up, or when tethering.

 

[samcraig]

"Dumb Pipe is able to foster brand loyalty."

Strange times we live in, but there you have it.

Silly/meaningless post is silly/meaningless post.

Chinese fortune cookie posts don't really add to the discussion, LTD.

There are many reasons why ATT is maintaining loyalty. It gets tedious with you constantly talking down to every company and minimizing what they do or contribute to the world just because they aren't Apple.

I hope you realize that when you take away all of these companies you have such contempt for - the world would be a much worse place for everyone.

 

[rockametrics]

"Dumb Pipe is able to foster brand loyalty."

Strange times we live in, but there you have it.

Voice and Data at same time is huge.
Faster Data speeds
Since I'm the primary on my family plan I get an upgrade every year. That would be worth it to me alone.

I do have some hits and misses with coverage where I live, but no big deal. When I travel for work I have no issues at all. I'll never go back to big red. Sprint has awful coverage IMO. already had them and won't go back either.
Verizon's arrogance is too much for me anyway. They'll always be the red-headed step child IMO.

 

[happydude]

i use voice plus data too much to switch. my at&t coverage is decent, so until verizon or sprint offer data plus voice, i'm not switching.

 

[centauratlas]

I've had no worse service with AT&T than I did with T-Mobile (factory unlocked iPhone 4) in the same area. Rarely any issues, so I have no reason to switch from AT&T after switching from T-Mobile. My cousin has an iPhone 4 with Verizon and we have similar service in the same areas - just the 4S is faster here on AT&T than his service on Verizon.

I'm sure a lot depends on where you are and the press does often exaggerate the complaints to have a good story.

Plus voice and data is nice - T-Mobile couldn't do that and it is often handy.

 

[AJH1993]

I for one cannot be happier to get rid of AT&T. Yeah they may have a faster iPhone, but so what? I could not stand their dropped calls, horrible tech support, and bad 3G coverage. AT&T has no coverage in my house while Verizon has 4-5 bars.

 

[iPhobic]

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Also, AT&T allows simultaneous voice and data. This is huge when talking and looking something up, or when tethering.

Exactly. I also get a better FAN discount with AT&T, don't have reception issues and customer service has been good. No reason to switch.

 

[bmustaf]

I'm not sure it is "remaining loyal" as much as "being backed into a corner".

Eating a $200 ETF is a big deal for a lot of people - but that does not constitute "loyalty" in my book in as much as a form of a protection racket to which these people* are subject. Loyalty, to me, implies people staying out of their own volition because they enjoy some part of the experience (I don't know of anyone who enjoys subpar data & voice service - who cares if you can do both at the same time when you can't do either reliably on its own?).

* - I am one of "these" people.

 

[Diode]

I just wish the US had decent pre-pay that supported the phone. The only current options piggy back on AT&T, who reduces network speeds for the MVNO's.

I'm out of contract - no reason I should pay the same for my iPhone as someone who just bought a subsidized 4s.....

Here's to hoping that LTE will finally level the competition field among carriers....

 

[bmustaf]

PS - What is this piece? Just free advertising for ATT? I thought that's what those banners at the top where supposed to be

 

[valexa]

Churn might not have moved but someone rolled in his grave.

 

[dagamer34]

When Sprint/Verizon get an LTE iPhone, I will be jumping ship.

 

[DrWeevil]

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Also, AT&T allows simultaneous voice and data. This is huge when talking and looking something up, or when tethering.

No simultaneous Voice & Data... this is the ONLY reason I haven't moved my family over to Verizon still! As soon as the get that.... AT&T is toast!

 

[Apple Expert]

I'm with ATT because I have been grandfather in on their unlimited plan. But one thing I find interesting is when ATT goes full 4G on their network, would they consider the unlimited plan 3g or 4g? Meaning we might not be able to carry over this plan to 4g. If thats the case I will be dumping ATT for Verizon. But service has been good with almost no dropped calls. Of course everyones results will vary.

 

[RobNYC]

I would think the unlimited data plans a lot of AT&T subscribers still have would be a reason to stay. If you jump ship now you lose that.

 

[mingoglia]

I was one of those that swore I'd dump AT&T as soon as there was an alternative. When it was time to pull the trigger, I stuck with AT&T. I had 2 dead zones that I'd lose calls when driving about 50% of the time. Since I use handsfree in the car I'd literally hold the phone up by the windshield when I got to those areas. These dead spots have spanned over several phones so I know it wasn't my device.

When Verizon came out I knew their service in the Phoenix area was exponentially better. I know this because I also have 3 wireless access points for my business. 2 of the mifi Verizon devices, and 1 of the new 4G devices (I use the 4G with my MBP and I have 2 employees use the other mifi devices). These things never drop on me. My wife will watch Netflix movies all the way from here to San Diego on road trips and it will work the entire time flawlessly.

For me it was the talking and data at the same time. I know it's not a big deal for most people, but this is really a showstopper for me. I frequently multi-task like this. I'm a true life version of those lame AT&T commercials that show the guy talking and using the Internet at the same time. To me having this is more important than dropping calls in areas that I know I'm going to drop a call and can compensate by taking another route or holding the phone in a more ideal spot while I pass that one point on the freeway.

Things completely changed with the 4S. I have YET to drop a single call in the areas that I used to drop (I've had my 4s since launch day). I haven't really researched if others are having as good of luck as me, but I can say my experience has been excellent with the new antenna design. It's a win win for me and I'm finally 100% happy with AT&T.

Let me also add the disclaimer of these talks about these providers really should be regional. What I experience here in the Phoenix area will obviously be completely different than say someone in the Bay area or NYC. I do know one of my business trips to Las Vegas where I found myself well off the strip (I was driving in with a tradeshow booth) I had almost zero luck getting my ATT 3G (or any "G" for that matter LOL) to work when I was trying to pull up a map. My business partner could also not pull it up on his iPad either. Could have been a bad day for AT&T, or a HUGE dead spot because we couldn't get anything for several miles. He had to resort to using the GPS on his Verizon Blackberry to get us to where we needed to be. Pretty lame since we had $1600 worth of iPads in the front seat that wouldn't work (2 64GB 3g iPads).

 

[dwman]

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Also, AT&T allows simultaneous voice and data. This is huge when talking and looking something up, or when tethering.

This is obviously a huge component, but I think one that's even bigger is the fact that many people, myself included, are locked into iPhone 4 contracts. Many of those will expire sometime next year when the iphone 5 is due, probably with LTE which will handle voice and data and be (supposedly) faster. Personally, I plan on switching to VZ with the iphone 5, but a lot folks still have unlimited plans on AT&T which will be tough for people to give up.

 

[Liquorpuki]

I would think the unlimited data plans a lot of AT&T subscribers still have would be a reason to stay. If you jump ship now you lose that.

This is my reason.... especially with iMessage and having 3 group chats on my phone with people sending each other pictures nonstop

 

[tCdemon]

Of course AT&T has the most iPhone users, bc they are all still stuck on a 2 year contract! And am pretty sure AT&T will send them attractive upgrade promotions before the contract expires to lock them in for another 2 years!