AT&T, T-Mobile, and Verizon customers are more readily cancelling service

Wireless carriers are turning adversity into opportunity.

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More customers than before are parting ways with major wireless carriers, according to financial services giant UBS. AT&T, T-Mobile, and Verizon have taken the challenge head-on by ramping up efforts to steal customers from rivals. A new Wall Street Journal article explores the increasing rivalry between the Big Three.

Everyone is the best


AT&T, T-Mobile, and Verizon have long been boasting about being the best. The rivalry has escalated in recent months with more meticulous methods to poach customers and more willingness to take legal action.

In October, Verizon kicked off its "Bring Your Bill" campaign, using AI to offer lower rates to rivals' customers. T-Mobile shot back with its more aggressive "Switching Made Easy" feature, which also uses AI to recommend a better plan.

T-Mobile's feature required AT&T and Verizon subscribers to share their login info, allowing T-Mobile to access account data saved on its rivals' systems. AT&T sued T-Mobile for implementing the measure, claiming the carrier was accessing information on its systems illegally. T-Mobile pared back its feature after AT&T's criticism and accused it of stifling customers' ability to compare rates.

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Verizon has also criticized the Switching Made Easy tool for raising privacy concerns. It's not clear if T-Mobile has also altered the feature for Verizon.

Recon Analytics founder Roger Entner pointed out that using customer credentials to get into their accounts could allow providers to exploit pricing gaps with rivals with pinpoint precision. By offering rates only slightly lower than a competitor's, T-Mobile could win over new customers without significant margin loss. That's because this strategy doesn't require it to lower prices for everyone.

That could be a winning strategy, given that UBS says cancellation rates have increased for leading carriers in recent years. This suggests that customers are more willing than before to ditch their provider for a better deal.

Another battlefront for carriers is marketing campaigns. Claims made by AT&T and T-Mobile have landed them in the crosshairs of the Better Business Bureau (BBB) National Programs’ National Advertising Division (NAD).

Carriers are boasting about performance and attempting to access account information to highlight their uniqueness as competition intensifies, according to business executive and e-commerce expert George Heudorfer. He says it's reminiscent of the 1980s cola wars, only this time it might not work. Ultimately, the carrier that is fair and reliable will win.

Cutting through the noise


In an era where every major carrier is asserting a lead, it can be difficult for customers to determine who to trust. According to the latest data from the Federal Communications Commission (FCC), T-Mobile leads in 5G coverage, Verizon dominates 4G, and AT&T has the most balanced overall network.

Still, there's no such thing as an absolute best carrier, and your best bet is to stick with the provider who has the strongest network in your area.

As for the raging rivalry between the Big Three, it's a good sign for customers. Verizon has been jolted into action by multiple quarters of customer losses, forcing it to offer more value to customers after multiple rate hikes. AT&T has been working to make its network better.

Which carrier is the best?


What customers really want


The main factor that pushed customers of the Big Three over the edge were price hikes. It's notable that the carriers are using every tactic except the one thing that would make the biggest difference: lower rates. While this would impact their bottom line, the current environment suggests it may become unavoidable. Verizon is close to starting a price war. It's already trying to outgun T-Mobile in promotions, though the latter remains the more generous of the two.
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