Given AT&T’s almost universal bad press when it comes to the reliability of their 3G network, you’d think the prospect of a Verizon iPhone would have Ma Bell trembling at the prospect of a mass diaspora of unsatisfied users.
With typical arrogance, though, AT&T head Ralph de la Vega laughed at the idea that AT&T had anything to worry about if the iPhone comes to Verizon at the JPMorgan tech conference.
Of course, Vega’s not banking on AT&T’s excellent service to keep customers around. Instead, de la Vega cited the near impossibility of getting out of AT&T’s contracts as the reason why they had little to fear.
de la Vega claims that 70% of AT&T customers are on family plans, which can be nigh-impossible to get out of. Additionally, 40% of customers are on corporate discount plans, so those customers will likely stay out with AT&T for the savings.
I think AT&T’s misplaced confidence here is going to bite them. Instead of trying to shore up their service, they are banking upon strangling their customers with their own restrictive contracts. Eventually, though, those contracts will lapse… and Verizon will be there with an iPhone and a hug.
