AT&T explains why T-Mobile's 15-minute switching can do it irreparable harm [UPDATED]

On November 20, T-Mobile launched the SME tool to help AT&T and Verizon customers join it using the T-Life app. This AI-powered tool analyzes a customer's AT&T or Verizon account to suggest the best plan for them. For the tool to work, customers must provide T-Mobile with AT&T login information.

AT&T says that T-Mobile's SME uses an automated bot that disguises itself as an AT&T customer to siphon off password-protected data. AT&T has labeled this an unlawful intrusion of its servers. The carrier has tried to talk to T-Mobile and beef up security to stop this scraping, but T-Mobile has consistently sidestepped the protections, leaving AT&T no option but to seek a court's intervention.

AT&T claims T-Mobile's actions violate its Terms of Use (TOU), which every visitor, including T-Mobile, agrees to. The TOU specifically prohibits using bots to obtain information, share it with a third party, and exploit it for commercial purposes. Interestingly, T-Mobile's own website has similar prohibitions.

AT&T has also accused T-Mobile of jeopardizing its customers’ data security and privacy by illegally accessing their data. The company says the practice can harm its business, reputation, and goodwill. T-Mobile apparently copies over 100 categories of sensitive customer and business information to its system, putting them at risk of identity theft or fraud. The data that the tool sends to T-Mobile includes full name, addresses, and billing information.

AT&T also says that despite telling customers their data won't be stored, T-Mobile retains their data, even if they don't switch.

AT&T also points out that account data is commercially valuable and that it maintains it at a considerable expense. It asserts that T-Mobile's scraping tool serves to give it a competitive advantage over AT&T.

AT&T wants the court to step in and put an end to T-Mobile's illegal intrusion into its system. The company also wants T-Mobile to destroy the data it has already obtained.

What's the correct way to go about this?

The whole appeal of T-Mobile's SME tool is that everything is taken care of, which is why access to a customer's account is necessary. Besides, T-Mobile might argue that AT&T customers give it consent to access their accounts.

However, T-Mobile's attempt to conceal itself when it accesses AT&T's system sounds fishy. Also, T-Mobile copies data about other individuals, such as family members on shared plans, on a customer's account who might not know their data is being accessed.

Wrong way to do a right thing

T-Life's SME feature is a potentially game-changing move. That is why T-Mobile must be transparent about what's going on behind the scenes. T-Mobile's rivals seem rattled by the move, as it removes a barrier to switching. Verizon previously warned customers about the dangers of using a tool like SME.

AT&T has taken the legal route, and while we don't know what the outcome is going to be, it's clear that T-Mobile's rivals would like the conventional switching model to persist.

In such a scenario, it's incredibly important that T-Mobile is forthcoming about how the tool works. Even if the court doesn't side with AT&T, its messaging about T-Mobile's tactics might be enough to make its customers suspicious of T-Life's SME tool.

On the other hand, AT&T and Verizon's insistence that SME is something to fear might signal that they relied on friction to retain customers.