Complaints about AT&T's service are not uncommon in densely populated areas like New York City and San Francisco but did you know one in four iPhone users would ditch the official iPhone carrier if they were offered the chance to switch to Verizon?
The Silicon Valley Business Journal cites a study by Credit Suisse that indicates as much as 23 percent (which amounts to 1.4 million) of iPhone users would switch from AT&T to Verizon if the latter got the iPhone in Q1 2011, as some rumors suggest it might. The investment bank said that 3 percent of AT&T iPhoners would be willing to break their contracts to make the switch and 'most' would switch if their contracts had already expired when Big Red got the iPhone.
It's a known fact that the iPhone exclusivity deal is an incredibly lucrative one for AT&T. Credit Suisse believes that if the iPhone makes it to Verizon next year, the network's subscriber numbers would sky rocket from two million to four million.
Though it would seem iPhone owners can't wait to get away from AT&T, the company's CEO, Randall Stephenson, doesn't seem particularly worried about the possibility of losing the the Apple device to other carriers. Market Watch reports that while Stephenson acknowledged the iPhone's positive effect on smartphone sales at a recent investor conference, the CEO said these sales were locking customers in to AT&T agreements that will not end just because another network gets the iPhone. Stephenson went on to describe the 80 percent of iPhone users as "sticky" consumers.
"If you look at the iPhone base, about 80 percent is either on a family-talk plan or in a business relationship with us," Stephenson said. "Those customers tend to be very sticky. They don’t churn very frequently."