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26% Of AT&T Users, 44% Of Verizon’s Existing Smartphone Owners Will Move to VZ iPhone

Gertraude Hofstätter-Weiß February 9, 2011 AT&T, Competition, Consumer News, Verizon, Video, Wireless Broadband Comments Off on 26% Of AT&T Users, 44% Of Verizon’s Existing Smartphone Owners Will Move to VZ iPhone

Standing in line for an iPhone tonight will be a little less comfortable than Apple's traditional summer release dates.

More than one quarter of AT&T’s iPhone customers and nearly half of Verizon’s existing smartphone customers are prepared to leave their current phones behind for Verizon’s iPhone.

That stunning conclusion from online research firm uSamp is raising eyebrows because of the shockingly high number of people willing to brave the elements (and the cost) to grab iPhone 4 on Verizon’s network, even if it means pitching their existing phone in the waste bin.

Smartphone-lovers will have that chance as customers queue up tonight for Verizon’s iPhone tomorrow.

uSamp surveyed more than 700 smartphone users, finding that 29 percent of AT&T customers who intend to switch to Verizon for the iPhone are willing to wait in line on Feb. 10 to get it. Among existing Verizon customers who plan to get the iPhone, 24 percent report a willingness to stand in line, too.  When weighted across customers willing to switch handsets, more than one-quarter of all current iPhone owners will end their contracts with AT&T sometime this year.

For young consumers, devotion to the iPhone is even more intense: among AT&T customers intending to switch, 35 percent of those ages 18-24 and 50 percent of those ages 25-34 are willing to wait in line on the Feb. 10 launch day.

For Verizon’s current BlackBerry and Android users who report plans to switch to the iPhone, 46 percent of those ages 18-24 and 34 percent of those ages 25-34 agree they will wait in line on day one.

uSamp’s research shows diverging reasons for the willingness to switch.  For current AT&T customers, displeasure with AT&T’s network is by far the most important reason.  Nearly half of all respondents planning to leave cite dropped calls, followed by complaints about coverage and customer service.

The most recent example of AT&T’s high-profile failures was a very unhappy Will.i.am, whose attempts to tweet messages during the Super Bowl were met with frustration at every turn.  It seems AT&T didn’t deliver a reliable signal inside the stadium in Dallas, ironic considering AT&T is headquartered in that city.

“Att crashed … ahhhh!!!! The worse [sic],” tweeted Will.i.am, who has more than 800,000 followers of his Twitter account. That was shortly followed with “At&t??? Wow…no service during halftime…unbelievable.”

For Verizon customers, the largest group planning to abandon their existing phones are Blackberry owners.  Nearly two-thirds of respondents are prepared to give up a phone that used to be known as a “Crackberry.”  Why?  It’s yesterday’s phone, according to many respondents prepared to move on.

Many Android owners are also prepared to switch to the iPhone, even if their existing phones are just months old. These customers originally craved the iPhone, but settled on an Android phone just to stay with Verizon.  Now that they can have both the phone and the carrier, they will.

uSamp even measured regional differences in the motivation to switch.  Southern Verizon customers are most eager for the iPhone (30 percent), Midwesterners the least (13 percent).  AT&T customers who consider that company’s service as worthwhile as a stale Triscuit are evenly spread from coast to coast, averaging around 28 percent of all customers surveyed.

Tomorrow’s introduction will be followed by the next generation of iPhones early this summer, so some are planning to wait before upgrading.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/WTTG Washington ATT v Verizon iPhone 2-3-11.flv[/flv]

WTTG-TV in Washington, D.C. explores the differences between AT&T and Verizon iPhones with Mark Kellner, technology correspondent for the Washington Times.  (5 minutes)

AT&T Announces New Wi-Fi, Tethering, and Trade-In Plans for Data Customers

Gertraude Hofstätter-Weiß February 3, 2011 AT&T, Competition, Consumer News, Data Caps, Wireless Broadband Comments Off on AT&T Announces New Wi-Fi, Tethering, and Trade-In Plans for Data Customers

Select smartphone customers will soon be able to connect multiple devices from their smartphone – via Wi-Fi – with AT&T’s new Mobile Hotspot application. Starting Feb. 13, customers bundling the Hotspot application with the AT&T Data Pro plan will get up to 4GB of data for $45 per month.

Customers on AT&T’s $20 tethering plan, which permits access to AT&T’s wireless network on a laptop or other device through your phone, will get an additional 2GB of use at no charge to match the Mobile Hotspot offer.

AT&T Mobile Hotspot details include:

  • Connectivity for multiple wireless devices to AT&T’s mobile broadband network
  • 2 GB of data usage for $20 a month, bundled with AT&T’s Data Pro plan ($25/2GB)
  • The combined AT&T Data Pro plus AT&T Mobile Hotspot will provide 4GB for $45 per month
  • 4GB applies to collective use among all devices
  • Customers will receive a text message from AT&T once the additional 2GB has been auto-added to their plan
  • An overlimit fee of $10 per gigabyte applies

AT&T also announced a new trade-in program:

Beginning Feb. 13, AT&T/FlipSwap’s trade-in service will launch in all AT&T stores, allowing AT&T customers to turn in old wireless phones and receive an AT&T gift card reflective of the device’s trade-in value and condition, as determined by FlipSwap. Customers can use the card in AT&T stores towards the purchase of new phones, equipment, or services.  All phones – regardless of manufacturer or date purchased – will be considered for trade-in.

AT&T also offers customers the option to donate old devices – or proceeds from their trade-in – to members of the military through the Cell Phones for Soldiers program.  Donation boxes are set up across AT&T retail locations.

Kyle, an AT&T customer and Stop the Cap! reader noticed the changes, and wasn’t very impressed.

“They matched Verizon’s pricing, nothing more — nothing less,” Kyle writes.  “What would be useful is free tethering tied to our existing data plan; there is no justification for charging extra just for the right to use your existing data plan on another device.”

AT&T Allows Long-Standing Smartphone Customers to Switch Back to Unlimited Data Plans

Phillip Dampier January 26, 2011 AT&T, Competition, Consumer News, Data Caps, Wireless Broadband 2 Comments

The Associated Press reports, and Stop the Cap! can confirm AT&T is allowing some of their long-standing customers to switch back to unlimited data plans, even if they gave them up after the company introduced cheaper, limited data plan options.

After our regular reader “PreventCAPS” sent word AT&T was relenting on some requests for unlimited data plans, we spent some time late this afternoon with Jim Scott, an AT&T customer from New Rochelle, N.Y. as he navigated his way through AT&T customer service trying to get back to an unlimited data plan.

“When AT&T offered customers new, cheaper data plans, I never knew those replaced the unlimited option and I thought I could save some money downgrading to a cheaper data option,” Scott told us.

But Scott discovered the plan allowances he got didn’t save him money at all, because he exceeded them.

“I am a contractor and I spend all day on my phone moving large image files and even video of work being done on the properties I manage,” Scott says.  “Two gigabytes didn’t cut it.”

Scott tried to switch back to his unlimited plan this summer, but was told he could not, as it was no longer offered.

Enter Verizon Wireless, which is keeping its unlimited service plan at least temporarily as it introduces the Verizon iPhone.  Verizon’s imminent iPhone has become leverage for customers who want to turn the tables on AT&T.

“Thanks to AT&T’s greed, I had already made the decision to dump them for Verizon when my contract ends in February,” Scott says. “AT&T works fine in this part of New York, and the only reason I am leaving is because they don’t have a wireless data plan that met my needs.”

We worked with Scott and suggested he threaten to cancel his AT&T service and walk his future business to Verizon Wireless.  We asked him to make sure to tell AT&T the reason he was planning to cancel his service was because of the end of unlimited data option.

On a three-way call with AT&T customer service, AT&T promptly offered to restore Scott’s access to its discontinued unlimited data plan.

“All I had to say was ‘Verizon’ and ‘iPhone’ and the customer service representative immediately starting clacking away on her keyboard, and I had my unlimited data plan restored in less than five minutes,” Scott said.

The AP reports the key to success is having been a previous subscriber to AT&T’s unlimited data option.  New customers who signed up after June 2010 never had that option, and AT&T has refused to offer unlimited data to these customers.

Because newer customers are under relatively new contracts, actually following through on a threat to drop AT&T is an expensive proposition with early termination fees still well into the hundreds of dollars.  For those closer to a penalty-free exit, AT&T recognizes many of these customers already have one foot out the door.

Jose Argumedo, of Brentwood, N.Y., told the AP he and a friend were switched to an unlimited plan recently after they called AT&T’s customer service. Both have iPhone 4s, and previously had earlier iPhone models.

AT&T spokesman Mark Siegel wouldn’t confirm the option to return to an unlimited plan.

“We handle customers and their situations individually, and we’re not going to discuss specifics,” he said.

Scott says he is comfortable with his iPhone, but getting back an unlimited data plan was more important than the handset.

“If I can use the iPhone as leverage against these guys, why not?” Scott says.  “They’ve had me under their thumb for more than six months now with overlimit fees — now the table is turned.”

Stop the Cap! advises customers who want to follow in Scott’s footsteps get organized before calling:

  1. Be sure to note the number of years you have been an AT&T customer;
  2. Explain you used to have unlimited data and now want that plan back;
  3. Tell them you are prepared to drop AT&T, even at the risk of a cancellation fee, if they don’t restore your access to the unlimited data plan.

If a representative is unable to make the switch, or doesn’t have information about how to switch you back, ask for a supervisor or hang up and call back.

Verizon Wireless Hotspot Pricing Will Burn a Hole in Your Wallet With $20/GB Overlimit Fee

Phillip Dampier January 26, 2011 Data Caps, Verizon, Wireless Broadband 1 Comment

If you use Verizon’s forthcoming iPhone as a Wi-Fi hotspot, be prepared to pay $20 a month for a maximum of 2GB of usage per month.

Many smartphones have built-in capabilities to serve as temporary hotspots to let you use your Wi-Fi capable equipment on Verizon’s wireless 3G network.  But that doesn’t mean Verizon will let you use it for free.

The so-called “personal hotspot” enables up to five Wi-Fi equipped devices to share your connection, but not too much.  If you exceed your 2GB plan allowance, the overlimit fee is a striking $20 per gigabyte.  Those fees come in addition to your usual Verizon voice and data plan charges.

Verizon is not singling out the iPhone for the expensive data plan.  The pricing is equivalent to what Verizon charges for a similar service on its other smartphones, according to Brenda Raney, Verizon Wireless’ executive director of corporate communications.

Verizon’s Not So Incredible iPhone Deal for Customers With Buyer’s Remorse

Phillip Dampier January 20, 2011 Consumer News, Editorial & Site News, Verizon 2 Comments

Verizon's iPhone Herd Mentality: Pay, pay more, and pay again.

We’re still trying to wrap our heads around this “deal” spotted in the Verizon iPhone FAQ by Gadgetell (underlining ours):

I just purchased a new smartphone during the holiday season, but if I knew that iPhone 4 was going to be available soon I would have waited. What are my options now?

Current Verizon customers who purchased and activated new smartphones, feature phones or certified pre-owned phones between 11/26/2010, and 01/10/2011, are eligible to receive up to a $200 Visa debit card when they purchase an iPhone 4 at full retail price by 02/28/2011 and return their existing phone. Note: This offer is only available on consumer accounts with five lines or less, who are purchasing iPhone 4 through Verizon Wireless retail stores, telesales, or through verizonwireless.com.

So, if you have recently bought a new Android or Blackberry phone during the holiday season, you can turn it in and essentially get your money back.  But Verizon isn’t giving you $200 — it is paying only as much as you spent on the phone to be returned, up to $200.

Verizon says that earns you the right to go and get in line to pay full retail price for a new iPhone in February.  No discounts or subsidies for you!  The 16GB iPhone runs $649.99 and the 32GB iPhone costs $749.99.

We’re basking in the savings.  Gosh, thanks Verizon!

Not only are customers giving up Verizon’s “new handset subsidy” — often worth hundreds of dollars, they also lose their New Every Two discount and other savings from promotions like Verizon’s Smartphones Talk Free $9.99 monthly discount for 24 months.

For those who simply must have the iPhone, Verizon will make you pay dearly for not waiting.

Having owned the iPod Touch (essentially the iPhone without the phone) and Motorola’s Droid X, I can testify the price penalty Verizon wants you to pay for the iPhone isn’t worth the asking price.  Move on, there is nothing to see here.  This is even more true considering the next generation of the iPhone will likely be introduced in just four months.  What will you do then, and how much do you think Verizon will extract from you all over again to get that phone?

There is no doubt Apple’s iPhone is a fine phone, but there are cheaper ways to get one, ranging from opening a new line on your Verizon account and passing your old phone down to a family member, to finding one on eBay, subsidized in part by selling your existing phone.

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