Thursday, October 16, 2008

What Does AT&T Do For An Encore?

Executives at AT&T have to be spending time thinking about what to do when the Apple iPhone ceases to be an AT&T-only product. 

In October 2006, before potential customers were aware that AT&T would have exclusive rights to market the iPhone, Verizon Wireless was getting twice as much upside from "churners" as AT&T was. 

About 28 percent of poll respondents surveyed by ChangeWave indicated they would be switching to Verizon for mobile service. About 14 percent indicated they would be switching to AT&T. 

After the deal was announced, the churn gap closed. And AT&T has had a net advantage in customer switching behavior since very-early 2008. Many would say this is an "iPhone effect." Some might argue it also is the result of other activities, including AT&T promotional activity. 

We won't really know until the iPhone exclusivity deal ends. In the meantime, AT&T marketing staffs have to be working on the next game-changer. 

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