26% of AT&T iPhone Owners Going to Verizon
bizjournals.com
bizjournals.com
Of the 26% that said they would switch, how many would do so if it cost them an additional $100 in early termination fees? How about $200? Add in a $199 iPhone, plus activation, and you're looking at over $400 in some cases.
The point is that 26% of AT&T's iPhone customers are so displeased that they are itching to leave, and as you mentioned astutely, if they stay it's only because they've been effectively chained down by a contract.
A business where a large portion of its customer base are involuntarily there is a severely sick one, and will either fail out of its own accord, or continue to hold back in the industry by propping itself up with monopolistic behavior and paid-for regulations.
http://www.uspirg.org/newsroom/financial/financial-privacy--...
Signed, A VZW Subscriber Panicked about AT&T Refugees
PS: I want to stick with AT&T because Verizon has shitty reception around around my parents house. But, where I live and work the AT&T data network is heavy oversubscribed.
Signed, An ATT Subscriber excited about AT&T refugees freeing up some bandwidth.
Pathetic.
(not an argument for AT&T, but for GSM)
(In case you can't tell, I'm annoyed that the majority of the world chose the technically shitty TDMA/GSM -> GPRS -> W-CDMA rather than the 2G CDMA -> CDMA2000 1X. The worst part is people saying that CDMA2000 1X was backwards because the rest of the world chose W-CDMA.)
Market's will eventually resolve the supply/demand imbalance but things take time to build. The expectation for things to happen instantly is partially a product of the instant-information age we've been living in for the last 10-12 years. These days so much of the demand side is expected to be instant that we forget the production side isn't.
I'd also be curious to see bandwidth production/consumption data broken down by country.
http://www.investorplace.com/28029/impact-verizon-apple-ipho...
Mabey AT&T is having financial difficulty and can't invest into the network as a result? But according to http://money.cnn.com/magazines/fortune/fortune500/2010/snaps... they're not hurting for money. So despite making more than $10Billion in profit, they simply can't let iPhone users use their phones the way they were designed to be used.
Secondly, AT&T realizes the network sucks, they just don't care. Case in point the AT&T microcell from Cisco. (See http://techcrunch.com/2010/03/24/att-3g-microcell/ ) It's a wonderful little device that plugs in to your Ethernet to provide you a perfect reception in your house. People in citys that have bad service, namely San Francisco, and New York would really benifit from this but AT&T in their infinite wisdom has decided that this magical technology must come at a price. And the cost of a cell phone that actually works? About $150. Take a moment and reflect on that. AT&T knows your service sucks, but unless you pay them, you're out of luck. That's not telecommunication, that's extortion.
AT&T has long been able to abuse it's iPhone customers simply because they had a monopoly on the iPhone. That ends next month. So I will be among the first to switch and frankly I think the fact there will be more than one carrier will benefit both. Verizon will be getting a massive amount of new customers, and AT&T will have the bandwidth those customers would use freed up.
They don't even do random phone interviews but use a self-selected sample of about 15,000 folks who signed up to take their surveys. And they brag that those are early adopters and "professionals" - so not exactly a representative group.
Also, just by default, I never trust a survey about consumers' opinions about future purchase decisions. It's too easy to say you are going to buy something in a survey and then never do it. Given that and the early termination fees and the pure hassle of switching providers, these numbers just seem awfully high.