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AT&T Doesn’t Value The Ideal Customer Pay up and shut up
By Karl D. Susman, Westside Gadget Guy | June 09, 2009
Today, Apple announced its next generation iPhone. The iPhone 3GS as it is called, sports a slew of new functions: better hardware, better battery life and overall better performance. Apple calls it the most powerful iPhone yet. A shoe in, a must have for iPhone lovers. Sounds like a win for Apple, and for the current ball and chain, AT&T. Everyone should be happy, right? Wrong. AT&T has demonstrated today, loud and clear, that it aims to take advantage of the the ideal customer. What is an “ideal customer” for AT&T? How about this for starters. An ideal cellular customer would: 1. Be willing to leave any competing cellular company and come to AT&T. 2. Be willing to pay any amount AT&T wishes to charge for their services. 3. Be willing to sign contracts promising not to leave for years without having to pay a fine. 4. Be willing to be last in line for MMS (aka picture messages) a simple technology that AT&T offers some of its customers, however not its iPhone customers 5. Be willing to not have the right to use the internet connection from their iPhone for any other device, and not even have the option to pay more for the privilege 6. Be willing to accept the mediocre cellular service AT&T offers Fortunately or unfortunately, AT&T has become a strong market force, stripping subscribers from competitors such as Verizon Wireless, Sprint and T-Mobile in such droves that on a termination survey Verizon Wireless actually asks if you left to get an iPhone. There is a daily flow of new clients moving to AT&T, even with the outrageous restriction and terms listed above. Now AT&T has taken its pompous arrogance to a whole new level. All those “ideal customers” purchased an iPhone with AT&T service when it was released 2 years ago. In keeping with the terms above, they signed an agreement to stay for 2 years. Last year, when the 2nd generation iPhone came out, those ideal customers forked over yet more money to AT&T, and signed yet another 2 year indentured servant agreement and swore on their wallets to stay for another 2 years. Doing the math here? Two year into a four year agreement...still with AT&T. Here we are on year two. Apple has come out with their 3rd generation iPhone, and our ideal client is ready again with their wallet. Sure, they are even willing to fork out some more cash to get the latest Apple goodness, but wait. This time, AT&T has decided to take advantage of its position of power. The ideal client currently has another full year left on its last contract with AT&T. So AT&T isn’t in jeopardy of loosing this client, so why give them anything now? Why reward them for their loyalty? Why allow them to just cough up a few hundred bucks, and sign yet another 2 year agreement when by now, it is clear they will stay and pay at any cost? Renew 2 years, add another two years, continue, years locked in, no matter how you crack it. Now, AT&T is making those poor loyal customers pay full retail for the new iPhone. We’re talking $599 for the top of the line iPhone. Oh, and don’t think that is all. People coming over to AT&T for the first time are lured in with the bait of $299 for the same phone, but our loyal customer gets smacked hard with full retail on top of a new 2 year contract. It is time that the loyal iPhone users out there finally put an end to this insanity. AT&T has crossed both the lines of decency and good business. They are clearly taking advantage of the clientele that have shown their willingness to follow a great product, namely the iPhone, even if it is tied to horrific service and strings such as AT&T brings to the table. Don’t bother calling or complaining to AT&T, that dye is cast and you will simply be told you have the option to leave. They realize you won’t because you are loyal to the Apple product. In AT&T’s infinite greed and misjudgment, they are mistaking the Apple loyalty for AT&T loyalty. Wake up and answer the cellphone, AT&T, you do not have a single iPhone customer out there that wouldn’t leave you faster than you can smack the END key if they could take their iPhone to another cellular provider, ones with much better coverage and service. iPhone users need to contact Apple and explain to them that they want their iPhones and they want them for a fair price and with the same excellent service the product deserves. They need to tell Apple they don’t like having their loyalty so plainly taken advantage of. Apple needs to force AT&T to do the right thing or do their own thing without Apple. American Telegraph & Telephone doesn’t get it. At some point very soon, they will see that people can turn on them when it becomes clear as day that they don’t value “ideal customers” unless they can squeeze their wallets dry and take advantage of their loyalty. Karl D. Susman
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Comments to date: 15. Page 1 of 1. Average Rating:  amy sommer
santa monica | 11:01am on Sunday, June 21st, 2009  | Thanks, they changed their policy; guess that they listen to customers after all! |
Willow
home | 11:53am on Wednesday, June 17th, 2009  | AT&T has changed the policy to give people the ability to get the better price! yea |
cell user
los angeles | 1:09pm on Friday, June 12th, 2009 | i agree that AT&T has THE worst service EVER. i don't know how anyone is with them! Can't make or receive phone call to save your life. If it was not for iPhone, would NEVER be with them by choice. |
Michael
Los Angeles | 6:50pm on Tuesday, June 9th, 2009 | these AT&T experiences make me realize why i still haven't left verizon :o)
great article, great information! |
Jezebel
Virginia | 9:07am on Tuesday, June 9th, 2009 | All "loyal AT&T customers should decide on a time and beginning from that time start to overwhelm the AT&T call centers with complaint calls. What AT&T is doing is screwing loyal iPhone users who go out and tell their friends and family who a great device the phone is and then they get screw in the a** by AT&T" Fanboys must fight back. |
Giovana
Simi Valley | 8:16am on Tuesday, June 9th, 2009 | All I can say is as soon as Verizon comes out with this phone I'll be the first one in line. I've been with Verizon for over 5 years and they have been nothing but helpful with any problems I have had. In addition, their reception is great no matter where I am. |
Rachel
Simi Valley | 8:12am on Tuesday, June 9th, 2009 | Dear Jan,
That is the dumbest comment ever. |
Scott G
Lake Forest, CA | 8:00am on Tuesday, June 9th, 2009 | Finally someone gets it! AT&T has an EXCLUSIVE on the iPhone. You would think they would be trying to endear themselves to loyal Apple customers.
I left Verizon for AT&T for one reason - the iPhone. I had heard AT&T wasn't as good. But i wanted to see for myself and what choice did I have? I am more loyal to Apple than to any carrier. So I left my beloved Verizon to a horrible AT&T experience.
AT&T has had 2 years to show me why I shouldn't leave them the moment Apple adds on another carrier (praying for Verizon end of next year). They haven't done that.
I'm gone the moment Verizon gets it. |
Stevie
Lake Forrest | 6:40am on Tuesday, June 9th, 2009 | It is a matter of choice. You make your choice and you stick with it. I do not like the choices AT&T offers. I would never leave Tmobile unless AT&T had prices that were better. |
iphone lvr
FU | 6:33am on Tuesday, June 9th, 2009 | SO TRUE MAN I READ THE SAME THING ALL OVER DA PLACE LIKE AT TUAW AND LIKE EVERYWHERE! DANG |
Tairy
Las Vegas | 12:27am on Tuesday, June 9th, 2009 | AT&T has demonstrated today, loud and clear, that it aims to take advantage of the ideal customer. What is an ideal customer' for AT&T? How about this for starters. An ideal cellular customer would:
But at this point, ponder this while you read: question this, how much of an ideal customer are you to your cable provider? Or home phone service provider (if you have one)?
1. Be willing to leave any competing cellular company and come to AT&T.
This I do not believe to be the case: People leave their cellular providers on a regular basis. Additionally, there are several people that have been with AT&T for years, even dating back to the time before AT&T assumed the name of Cingular. So in fact,
2. Be willing to pay any amount AT&T wishes to charge for their services.
I find this to be out of context: Not once as an AT&T customer, have I been asked to do anything more than I would have done at the end of any one of my contracts, therefore making the upgrades my personal choice, not AT&Ts, pricing included, these are personal choices.
3. Be willing to sign contracts promising not to leave for years without having to pay a fine.
This is no different than any other wireless provider. Requesting you re-new your contract at the time when you either upgrade your device, or re-up your contract, so why should AT&T be any different?
4. Be willing to be last in line for MMS (aka picture messages) a simple technology that AT&T offers some of its customers, however not its iPhone customers
The only reason, to my knowledge: Is this feature was not offered via AT&T was because it was not supported by the iPhone, therefore those of us purchasing the iPhone were aware of this feature absents. So waiting at the back of the line, so to speak, was once again a choice. All things are a choice and loyalty comes from a personal perspective.
5. Be willing to not have the right to use the internet connection from their iPhone for any other device, and not even have the option to pay more for the privilege
It is my understanding this is an option that will soon be changing and you will in fact, have the opportunity to add a purchase price to your plan for this connectivity option. So a waiting game is eminent, with the outcome uncertain, yet in the works.
6. Be willing to accept the mediocre cellular service AT&T offers
If a mediocre experience is a day to day endeavor then a personal choice must be made, for any person having these issues. As devoted to the iPhone I may be, my cellular service is of the utmost importance. I have no qualms with my service and I am still running the original iPhone. Will I upgrade? Yes, just not today for no more than current monetary issues..
Fortunately or unfortunately, AT&T has become a strong market force, stripping subscribers from competitors such as Verizon Wireless, Sprint and T-Mobile in such droves that on a termination survey Verizon Wireless actually asks if you left to get an iPhone. There is a daily flow of new clients moving to AT&T, even with the outrageous restriction and terms listed above.
I do understand your point here, however, with the state of things the way they are, I do not believe AT&T is doing anymore or less than any other service provider in the industry.
Now, AT&T is making those poor loyal customers pay full retail for the new iPhone. Were talking $599 for the top of the line iPhone. Oh, and dont think that is all. People coming over to AT&T for the first time are lured in with the bait of $299 for the same phone, but our loyal customer gets smacked hard with full retail on top of a new 2 year contract.
The only comment to this is for me to say, wait it out. Just as with any other contract upgrade if you want it now, you are going to pay full price. I do not believe it to be a loyalty issue, simply business as usual: for AT&T and every other wireless provider across the world.
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Jan Location unknown | 11:23pm on Monday, June 8th, 2009 | This is the dumbest article ever.
That termination survey is garbage --- the survey data never reconcile with actual carrier subscriber data in the carrier's SEC reports. AT&T (without Tracfone) has never beaten Verizon in net subscriber growth since the first gen iphone was launched --- that's the real data from SEC filings. |
Paul Barrie Location unknown | 10:46pm on Monday, June 8th, 2009  | Oh Karl,
Someone is just upset that they have to honor their contract... and, understandably REALLY wants the new REALLY AWESOME iphone 3GS.
The 2 year before "subsidized upgrade" contract is NOTHING new (I have been upgrading on them for decades) and for those who bought the original iPhone (like me) and waited patiently for THIS upgrade (i.e. NOT buying the 3G when it came out), the upgrade price is $299, just like when original 3G buyers bought last year.
Also, in regards to the AT&T service, if you are having trouble, report it. The AT&T service in my city is spotless, and it has been spotless in my travels as well.
I believe that the motivation for your comments (regardless of their accuracy, which I believe to be less than 100%) is simply based on the fact that you bought a 3G phone last year and cant upgrade now without paying a premium.
Karl, Karl, Karl... Just hang out (like I did when you got YOUR 3G last year - remember how jealous I was?) and wait another year.
Maybe, by then, Apple will upgrade the iPhone to 4G and I can quietly stew in my situation until MY contract is up. |
smarter person
us | 10:22pm on Monday, June 8th, 2009 | dude learn to type you might want to get you facts straight lmao |
Smart person
Us | 10:15pm on Monday, June 8th, 2009 | You might want to get you facts straight the two year contract renews for two years not added on to. |
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