AT&T CEO not worried about loss of iPhone exclusivity

AT&T CEO not worried about loss of iPhone exclusivity
A survey released earlier this week by Credit Suisse revealed that 23% of current iPhone users would switch to Verizon if the carrier begins supporting Apple's device. AT&T's CEO, however, is showing no concern for the 1.4 million customers with one foot out the door.

In an investors' conference yesterday, CEO Randall Stephenson argued that the end of the exclusive AT&T/iPhone relationship would not incite an exodus. He said that two-thirds of iPhone users were on AT&T before they had their iPhones, so there must be some accrued company loyalty. He then noted that the iPhone 4's recent release locked many customers into two-year contracts, which would be expensive to break.

The argument about early termination fees is certainly valid. Those 23% ready to join Verizon might think twice when presented with the bill. Those same 23% also might feel silly paying a termination fee, and then buying the same (or similar) iPhone they already owned, but for a new carrier. On the other hand, they might be switching to an unlimited data plan, and so might save some money on the back end.

But the argument about carrier loyalty is delusional. People won't be loyal to AT&T if they feel they aren't getting a fair shake (i.e. most dropped calls, smallest 3G coverage in the US).

Stephenson's defense of AT&T's position is predictable considering it was an investors' conference. The investors knew it had to be addressed, and the end of iPhone exclusivity is a concern for AT&T, whether or not they admit it.

source: Yahoo! News

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20 Comments

1. big dogg unregistered

the iphone needs to hurry up and cum 2 verizon cuz its the best overall network

2. mr. droid

Posts: 278; Member since: Aug 21, 2010

blah blah blah blah. talk about the most over-hyped thing in the world. over-hyped is a HUGE understatement. the phone is a piece of garbage. get over it.

3. ibap

Posts: 865; Member since: Sep 09, 2009

I don't mind that people want a phone that is really easy to use. I DO mind when they think they're more tech-savvy because of it. Kind of like they are more kitchen savvy because they know how to make toast. And of course ATT is going to claim to not be concerned. Note - CLAIM. Or maybe they're relieved to offload some of their high-traffic users.

4. remixfa

Posts: 14605; Member since: Dec 19, 2008

of course they would claim that they arent scared. no company is going to tell their investers "omg we are dooooooomed". Of course if there is an exodus (and i suspect there will be), and they show a few negative quarters since most of their activations were iphones, the investors might have a thing or 2 to say about that. I do have to give PA a little credit though, they finally said something honest about ATT... most dropped calls, smallest 3g coverage... i guess now that the iphone is moving on they dont feel the need to defend the horrid network anymore.

5. narley

Posts: 357; Member since: May 14, 2009

AT&T isnt worried about dropped calls, lack of 3G coverage, lack of LTE coverage (when it comes), and their network overall.... why would they care about a phone?

6. DontHateOnS60

Posts: 872; Member since: Apr 20, 2009

Word is that the N9 is going to take over where the iPhone left off in AT&T's lineup.

7. jbarajasp unregistered

Enough with this "vzw has a better network crap".... Verizons's network is actually MUCH slower than its competitors.... it its only about a 3rd the speed of ATTs network. It's NOT much larger than ATT and T-Mobile's footprints. Sprint actually covers about 1 million MORE people nationwide..... YES, I was shock to hear this too but look it up and be amazed! :) Verizon WILL NOT use LTE on the iPhone any time soon because they stated that in its current state an LTE smartphone would be a HUGE monster. Not to mention that currently they cover ZERO people with LTE and only plan on launching 30 markets this year.....

8. mr. droid

Posts: 278; Member since: Aug 21, 2010

i think your network-speedo-ometer is a tad bit way off! i have heard reps at the at&t store actually tell customers that it is not actually 3G, but rather 2.5G.. how ever that would work.

9. ref888 unregistered

so what you're saying is that the coverage maps listed both on at&t's website and verizon's are completely inaccurate?

10. WKlingbeil

Posts: 215; Member since: Dec 26, 2008

@jbarajasp - I don't think you've really researched the whole picture of why people claim vzw has a much better network. Okay, so AT&T has a faster network than VZW... THEORETICALLY! In practice, the GSM network gets overloaded too quickly and consumers never see those fast speeds. Their speeds are generally comparable with Rev. A speeds, even though the theoretical speeds of Rev. A are much lower. Just because Europe uses it, people think that GSM is so much better when in all actuality, it is not at all. Oh, and regarding footprints, are you insane? T-Mobile's footprint is nearly microscopic in comparison to anyone else's, voice included. As far as everyone else goes, the only 2 companies with comparable 3G footprint goes are VZW and Sprint. Though people don't believe it, because they're stubborn and believe what they want to believe, Sprint has been rated as the most reliable network in many areas (including my SE region), while VZW takes the most reliable in others. Whether you're tired of hearing it or not, AT&T is at the bottom on just about every quantitative score for wireless companies. They're dead last in customer service, dead last in network reliability, the only thing they've got right now is the iPhone. These aren't just random facts I just made up, this is coming from Consumer reports, J.D. Power, etc. Just to make sure I explain fully how these studies are done, they poll REAL users of each carrier's network and report accordingly. Therefore, if J.D. Power says AT&T is dead last in customer service and network reliability, that means x thousand of their customers told them this. So, before you talk about looking stuff up, you may want to look up 3rd party websites as opposed to AT&T's website.

11. BlackberryUser

Posts: 609; Member since: Jun 26, 2009

So you're telling me, I shouldn't ask AT&T if they're #1? Are you trying to tell me their reps may lie to me to sell a phone? I just won't believe it at all. My AT&T rep told me Verizon's phones are 1/10th as fast and kill a bunny everytime you send a text message.

12. bb unregistered

lol, kill a bunny.

14. networkdood

Posts: 6330; Member since: Mar 31, 2010

Dude, are you stpid....?? Seriously - I get 3MPBS speeds on my phone - which is considered 3.5G....

18. remixfa

Posts: 14605; Member since: Dec 19, 2008

3mb is VZW max theoretical speed. Anything less than 7.2 is concidered 3g... which is what ATT runs off. The reason they claim they are "the fastest 3g network" is because Tmobile is advertising HSPA+ as "4g like". I get a constant 5-6 on my vibrant, and when the G2 comes out next month it will be the fastest phone in the US. Though for the life of me i dont know why they would cap the G2 at 14.5mb/s when the theoretical max of HSPA+ is 21. Wonder if the mytouch HD is going to be full 21 or not.

13. hornetmx

Posts: 71; Member since: Mar 12, 2010

Speaking of bunnies, I just heard that Jimmy Carter was once attacked by a swimming bunny? Is that fricken true? Nice to have that on your presidential resume if that's the case.

15. phoneguru unregistered

How about your all off, WHAT you seem not to realize is each company is different!! AND BY WHAT I MEAN IS AS FOLOWS:::: everyone is concerned about who has a faster 3g or 4g speed!! right??? Well G stands for the generation that company is currently on. Now with that in mind every 3g network is different! Ok lets put at&t 3g vs verizon 3g, of course verizon is bigger 3g wise! But what you don't realize is at&t edge network vs verison 3g is much bigger!! So what you won't see is that map. So whats the difference in at&t and verizon? AT&T you can simataniously talk text and web at the same time on edge and 3g, now can you do that with verizon? So if your checking your email on verizon your missing calls!! Not on at&t!! Gsm and cdma are 2 totally different technologies!! And yes there are major differences!!

16. iwebdroidberry7 unregistered

Dude you are a FUCKING IDIOT! I cant wait till verizon starts kicking out lte so imbeciles like you can stfu!

20. remixfa

Posts: 14605; Member since: Dec 19, 2008

is this guy for real??? LOL holey crap. i love how he compares slow ass Edge to 3g maps.. You do realize that VZW has more 3g than ATT has edge? because all of VZW's map is 3g.. its nearly impossible to pick up a 1xrtt (Cdma version of Edge) signal anymore. if people really missed calls while on VZW because they were checking their mail, people would be throwing a fit. its called "auto pause online, let the call come through".. LOL. OMG. I really hope some of these people are just messing with the rest of us and not really this idiotic.

17. bucky

Posts: 3771; Member since: Sep 30, 2009

you guys forget one thing... gsm>cdma. .

19. Russki

Posts: 45; Member since: Dec 26, 2009

I can see the Verizon commercial now: Shopping for an iPhone? Choose the smarter network - Verizon Wireless.

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