AT&T Tops Verizon - But Which Customers Are More Satisfied? 20 comments
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Jim Woods co-wrote this article.
The latest ChangeWave survey on cellular service providers shows the battle between AT&T (T) and Verizon (VZ) is raging on.
The December 9-15, 2008 survey asked 3,800 respondents to identify their current cellular service provider, and AT&T tops the list with 31% – up 1-pt from the previous survey in September. Verizon (30%) came in a very close second, also up 1% from previously.
Sprint Nextel (S) (10%; down 1-pt) and T-Mobile (10%; unchanged) are still far back at the rear of the pack.
In terms of customer satisfaction, however, the results are quite different. The battle isn’t even close.
As the following chart shows, Verizon (49%) holds a commanding lead over AT&T (30%), in terms of the percentage of its customers who say they are very satisfied with their cellular service provider.
click to enlarge
Once again, T-Mobile (27%) and Sprint Nextel (25%) bring up the rear.
What’s Up For 2009?
To get a sense of where the AT&T vs. Verizon battle is headed in first half 2009, we asked respondents if they planned to switch cellular service providers in the next six months. And among those saying they’re likely to make a change, we asked which cellular service they planned on switching to.
AT&T still tops the list, garnering 27% of potential switchers – but that’s down 4-pts from September. At the same time Verizon (22%) has gained 3-pts since September.
Sprint Nextel (5%; up 2-pts) and T-Mobile (5%; down 2-pts) are tied for third place.
Just Drop It!
The ChangeWave survey also took a look at dropped calls – one of the biggest factors when it comes to cellular service provider satisfaction.
To see how the industry titans measure up in terms of number of dropped calls, we asked our respondents to tell us the percentage of their calls that were dropped over the past 90 days.
The clear winner: Verizon, whose customers reported an average of just 2.2% of their calls dropped over the past 90 days.
Sprint Nextel was second with an average of 3.4% of their calls dropped, followed by AT&T with 3.7%. Reporting the most drops were T-Mobile customers, with 4%.
With the Verizon dropped call rate registering the lowest in the industry, it’s no surprise that their overall customer satisfaction rating is the highest in the industry. But why then does AT&T hold a slim market share lead over Verizon?
There’s a simple three word answer, actually – the Apple (AAPL) iPhone.
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This article has 20 comments:
The key here folks is the astounding growth of Apple's App Store. Take a REAL hard look.... AAPL should be around $130 a share today.... BUT NOOOOOOO all the NAY Sayers beat their drums about their third rate handsets, software and OS... What a joke. Like Zune!!!!
With that locked up, AT&T just needs to work on improving their 3G network.
Bottom line, when you measure balance sheet to balance sheet, network to network, Verizon is Paul Bunyan and At&T is Giminee cricket.
On Jan 29 06:18 PM Nextel Accessories wrote:
> Drop call data confirms Sprint is not getting the recognition they
> deserve. Look for them to be a dark horse in 2009!
I recently (reluctantly) switched to AT&T, and now have 2 of my 4 lines of service with them. I will soon be switching the remaining lines as the other contracts roll off. Why? Because of the iPhone, mainly, but the service and reception are excellent - in fact, locally better than Verizon. Dropped calls? So far, none.
Stockwatchah and RDiddy are wrong on several major counts.
First, iPhone is hardly AT&T's only choice - they have a large inventory of other phones - including the vaunted Blackberry - although iPhone is outselling them all by 25% or better... however, for those with slender budgets, or those who don't need or want much in a device, there are plenty of choices.
AT&T doesn't take a "$400 hit" on every iPhone - they subsidize about half the cost - we pay the rest. My 16 GB cost me $199 - plus a two year contract. Over the term of that contract, they make approx. $1400 per phone for the basic package, plus extra charges for features like texting. That is pretty good ROI.
More importantly, they have also gained MANY new customers they wouldn't have seen otherwise - like me and my entire family - my stepson was the first to get one of the first gen, then I did (after waiting a LONG time for various reasons), and I also got one for my stepdaughter. My wife is next. Meantime, my brother has bought one, and his company (Carhartt) supports them, so he is using it for his main phone and e-mail system when traveling.
As far as running out and buying something else - I didn't buy it because it was the latest "fad" - I have been asking Apple for a PDA / phone for years. Now they have exceeded even my expectations and their own usual brilliant design and execution, with the world's first true hand-held MID (Mobile Internet Device). It is as amazing as it looks, running a modified mobile version of the great OS X, instead of the Windows Mobile or one of those other laughably poor so-called "platforms." (Stockwatchah, like many others who obviously don't understand the device, seems unaware of the difference between a "smartphone" and a MID.)
It is simply the best phone I have ever used, bar none - and I will NEVER use another - unless Apple comes out with an even more amazing one. Everyone I know who owns one feels the same way - even my brother, who was a big Motorola and Windows user until last year. (He now has a desktop iMac as well.)
It also seems to be repeating the "halo effect" of the iPod - that is, it is drawing a lot of new users to Apple from Windows.
So I am rather dubious that their assumptions (most of which seem to be based on lack of knowledge of the product and / or the market) are useful in gauging either the iPhone or AT&T's market share. The ONLY area where AT&T is actually shining now is in wireless (where everything is headed anyway) - and that is driven primarily by iPhone sales.
(BTW, Verizon is still kicking itself over their remarkably stupid decision to turn down the iPhone, according to some insiders I know... Speaking just for myself, I am very sorry to have been forced from the Verizon fold - but they made the wrong move - and I have told them so.)
I imagine that if and when Apple opens up the opportunity, there will be a rush of other service providers to jump on. Apple has succeeded in not only producing the first true MID, and making it wildly successful, but in breaking the mold of the wireless service provider business model - where the SPs are calling the shots. Apple will probably provide the iPhone in future to those companies who agree to Apple's terms - a share of the proceeds - instead of joining Motorola and the rest in a race to the bottom to build cheaper and crappier throw-away handsets.
Yes, AT&T added 2 million customers this past quarter-however, 1.9 million were iPhone customer...so much for other offerings customer are interested in. Did Verizon make a mistake not accepting the Apple offer (remember, they were offered the iPhone first but turned it down)? Don't thing so based on yet again, fact of data earnings minus the fee they payed Apple to be exlusive. Your ROI doesn't account for the fee AT&T paid Apple...they actually lose money on each iPhone customer.
As far as customer satisfaction between the carriers, proof is in the pudding so to speak. Every major publication (Wireless Week, Consumer Reports, RCR, JD, etc.) all suggest Verizon is the best in every category. Hey, I work for MetroPCS so part of the competition but let's face it, we all have something to strive for.
On Feb 03 08:38 PM F. J. Taylor wrote:
> I was a Verizon customer for many years - in fact, since the early
> '90s when they were Airtouch in our area. Great service, great staff
> - but they finally made one big mistake - turning down the iPhone.
>
>
> I recently (reluctantly) switched to AT&T, and now have 2 of
> my 4 lines of service with them. I will soon be switching the remaining
> lines as the other contracts roll off. Why? Because of the iPhone,
> mainly, but the service and reception are excellent - in fact, locally
> better than Verizon. Dropped calls? So far, none.
>
> Stockwatchah and RDiddy are wrong on several major counts.
>
> First, iPhone is hardly AT&T's only choice - they have a large
> inventory of other phones - including the vaunted Blackberry - although
> iPhone is outselling them all by 25% or better... however, for those
> with slender budgets, or those who don't need or want much in a device,
> there are plenty of choices.
>
> AT&T doesn't take a "$400 hit" on every iPhone - they subsidize
> about half the cost - we pay the rest. My 16 GB cost me $199 - plus
> a two year contract. Over the term of that contract, they make approx.
> $1400 per phone for the basic package, plus extra charges for features
> like texting. That is pretty good ROI.
>
> More importantly, they have also gained MANY new customers they wouldn't
> have seen otherwise - like me and my entire family - my stepson was
> the first to get one of the first gen, then I did (after waiting
> a LONG time for various reasons), and I also got one for my stepdaughter.
> My wife is next. Meantime, my brother has bought one, and his company
> (Carhartt) supports them, so he is using it for his main phone and
> e-mail system when traveling.
>
> As far as running out and buying something else - I didn't buy it
> because it was the latest "fad" - I have been asking Apple for a
> PDA / phone for years. Now they have exceeded even my expectations
> and their own usual brilliant design and execution, with the world's
> first true hand-held MID (Mobile Internet Device). It is as amazing
> as it looks, running a modified mobile version of the great OS X,
> instead of the Windows Mobile or one of those other laughably poor
> so-called "platforms." (Stockwatchah, like many others who obviously
> don't understand the device, seems unaware of the difference between
> a "smartphone" and a MID.)
>
> It is simply the best phone I have ever used, bar none - and I will
> NEVER use another - unless Apple comes out with an even more amazing
> one. Everyone I know who owns one feels the same way - even my brother,
> who was a big Motorola and Windows user until last year. (He now
> has a desktop iMac as well.)
>
> It also seems to be repeating the "halo effect" of the iPod - that
> is, it is drawing a lot of new users to Apple from Windows.
>
> So I am rather dubious that their assumptions (most of which seem
> to be based on lack of knowledge of the product and / or the market)
> are useful in gauging either the iPhone or AT&T's market share.
> The ONLY area where AT&T is actually shining now is in wireless
> (where everything is headed anyway) - and that is driven primarily
> by iPhone sales.
>
> (BTW, Verizon is still kicking itself over their remarkably stupid
> decision to turn down the iPhone, according to some insiders I know...
> Speaking just for myself, I am very sorry to have been forced from
> the Verizon fold - but they made the wrong move - and I have told
> them so.)
>
> I imagine that if and when Apple opens up the opportunity, there
> will be a rush of other service providers to jump on. Apple has succeeded
> in not only producing the first true MID, and making it wildly successful,
> but in breaking the mold of the wireless service provider business
> model - where the SPs are calling the shots. Apple will probably
> provide the iPhone in future to those companies who agree to Apple's
> terms - a share of the proceeds - instead of joining Motorola and
> the rest in a race to the bottom to build cheaper and crappier throw-away
> handsets.
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
Now envision using the Palm Pre, which is to be released shortly with this net work speed. The Palm Pre outdoes the iPhone in hardware, OS, ergonomics, functionality, flexibility and customer satisfaction. ATT and Apple have a lot of rethinking to do.
This is true without using the Palm Pre's OS and new TI processor. I have no doubt that Apple and ATT are sweating the impending iPhone killer. The Pre is leaps and bounds ahead of the iPhone, which can be corroborated by the likes of Wired Magazine, PC Magazine etc. I just can't wait to replace
On Jan 29 10:49 AM brewer wrote:
> iPhone makes AT&T the clear winner. Plus, if you go on an international
> trip, the iPhone with AT&T will work anywhere, no additional
> charges. Try that with any other service.
On Jan 29 08:42 AM StockWatchah wrote:
> Being in the stock market for many years, I have watched both ATT
> & Verizon. What folks do not understand is that these two companies
> are not in direct competition... Yes maybe so when it comes to wireless,
> but both companies have very different game strategies as they move
> forward. Verizon is clearly the better choice. ATT went to the horse
> track and bet billions on one product I.E. the Iphone! That to me
> spells out stupidity.... plain and simple. VZ has many diofferent
> options especially when it has not just one smart phone, but potentially
> hundreds on the back burner. Also VZ's customers are MUCH more satisfied
> with their wireless service, not to mention the light speed of FIOS,
> which ATT can't hold a candle to.