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Channel Partners: “Verizon iPhone: 2 in 3 AT&T Customers Paid Termination Fee to Switch”

March 26, 2011

How much do people love AT&T?  Here are two clues for you.  If you want to see how excited T-Mobile customers are about becoming AT&T customers, check out the T-Mobile Forum!  It’s overwhelmingly negative (and blunt!).  And the story below shows the love, too. 🙂

Verizon iPhone: 2 in 3 AT&T Customers Paid Termination Fee to Switch
by Craig Galbraith, Online Managing Editor
March 24, 2011

Fed up with AT&T, a new study shows a large percentage of iPhone users didn’t mind coughing up $325 to leave the carrier in the dust when Verizon debuted the CDMA version of the iPhone in February.

Two out of every three AT&T customers who made the switch decided not to wait until their service contracts with AT&T were up, according to research by mobile-ad exchange Mobclix.  The carrier charges a hefty $325 termination fee for bailing out early.

The study also found that AT&T iPhone owners lean on Wi-Fi more than their Verizon counterparts, particularly in larger cities where AT&T has struggled with the reputation of its wireless network.  AT&T users latched onto Wi-Fi 53 percent of the time compared to just 38 percent for Verizon users.

When asked why they made the switch, the new Verizon customers listed three primary reasons:  reception issues, a personal hotspot and reputation.

“Based on our survey findings today, it’s clear that consumers are taking control of their mobile destinies by evaluating carrier criteria such as Wi-Fi usage, reception issues and reputation as part of their decision to remain with their carrier or make a switch,” said Krishna Subramanian, Mobclix co-founder.

The long-term impact of AT&T’s loss of iPhone exclusivity remains to be seen. We might not know the full effects for at least another year as subscribers’ AT&T contracts begin to expire.  The carrier has promised a dozen new Android-based phones this year in order to help offset the losses.

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