WILL SIX MILLION IPHONE USERS DIVORCE AT&T FOR VERIZON?
Forbes and All Things Digital (and the Wall Street Journal) are prognosticating that I-phone users will be dropping AT&T like a brick and running over to Verizon to the tune of 6,000,000 strong. And why would that be, I wonder? Whatever the reason for this anticipated divorce, it is not the dropped calls. According to Forbes, those have diminished over the last year as AT&T scrambled to amp up its game and provide customers with a better wireless network. But still. Fully 40% of people could say, “I don’t care about their beefed up network, I want a divorce!” Says Forbes:
AT&T (T) could lose 40% — or 6 million of its estimated 15 million iPhone customers — when and if Apple (AAPL) makes a model of its smartphone that runs on Verizon’s (VZ) cellular network, according to a note to clients issued Tuesday by Davenport & Company’ Drake Johnstone.
But AT&T will not make a divorce all that cost efficient. They charge a whopping $325 termination fee (that gets pro-rated depending on where you are in your contract.) And according to reports, the family and business discount plans are “notoriously difficult to unravel.” So that means that a divorce is not inevitable, necessarily. Although, customers may not have anything to say about it. Apple is expected to heave ho AT&T to the curb come 2011 anyway – and arguably they should. I know my I-phone was a piece of crap, so much so that I gave up on it for call-making. It was embarassing trying to talk to clients with that piece of $#%T because all I got was DROPPED CALLS.
So I am in favor of a divorce. But we shall have to wait and see how this plays out.