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AT&T drawing customers from other carriers due to iPhone

May 27, 2009

The popularity of the Apple iPhone, which is carried exclusively on the AT&T network until next year, is the likely reason AT&T is beating other carriers in pulling customers from other wireless carriers, according to a survey analysis by ChangeWave.

ChangeWave's March survey of wireless customers found that AT&T beat out rival Verizon Wireless in customer loyalty, with only 9 percent of current AT&T customers saying they’ll switch to another service, versus 11 percent of Verizon customers.

One-third of customers who said they plan to switch carriers in the next six months indicated they will go to AT&T, more than the 24 percent who said they'll switch to Verizon.

ChangeWave survey data going back to 2005 indicates that AT&T began beating Verizon in its share of service switchers at the same time as the company launched its deal to carry the iPhone.

The survey found that Verizon scores better than other carriers on customer experience with dropped calls and customer satisfaction.

But the big question, according to ChangeWave, is how will customers react if AT&T cannot extend its contract with Apple? If Verizon launches a similar phone on its network, the dynamic could shift in favor of Verizon, ChangeWave said.

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