Does AT&T want *fewer* customers?

[s44]

No more online handset sales? (Except on the official site.)

Lunacy.

 

[kaerflog]

That is stupid.

 

[dougp]

It's a double-edged sword though - I don't think a lot of people realize that if you have an issue with a handset, and you went through a third party retailer, that you're required to go back to them for any issues with the handset, including "warranty" issues. This highly inconveniences customers, especially if they use retailers with an online-only presence.

Damned if you do, damned if you don't.

 

[zerocool84]

Ahh AT&T, the company that has to subsidize it's network with Wi-fi hotspots all over the place and counts your Microcell data use that uses your own home internet against your phone data cap.

 

[Bateluer]

and counts your Microcell data use that uses your own home internet against your phone data cap.

Seriously? WTF.

 

[Malak]

Having previously worked for AT&T, yes. They want fewer customers. Given the many ways they implement whatever their strategy is, I can only assume this is the case.

 

[gevorg]

What AT&T really wants is for the top 5% of data users to leave.

 

[Slick5150]

Ahh AT&T, the company that has to subsidize it's network with Wi-fi hotspots all over the place and counts your Microcell data use that uses your own home internet against your phone data cap.

Wait, what?! They do?? Ha!

(hugs his Sprint Airave they sent him for free)

 

[Strk]

Ahh AT&T, the company that has to subsidize it's network with Wi-fi hotspots all over the place and counts your Microcell data use that uses your own home internet against your phone data cap.

I thought the microcell was just for voice? But yeah, it does use your minutes to use the thing even though it uses your home network.

 

[the DRIZZLE]

They might simply think that its not worth it to give the third party sellers a cut. They are probably figuring that the additional revenue they get from customers they wouldn't have gotten through their own stores is less than what they're giving away on customers that would have bought from att anyway if the third party sellers weren't an option.

 

[dlock13]

They might simply think that its not worth it to give the third party sellers a cut. They are probably figuring that the additional revenue they get from customers they wouldn't have gotten through their own stores is less than what they're giving away on customers that would have bought from att anyway if the third party sellers weren't an option.

The thing is, where they make their money is the plans. By not allowing people to sign up for a phone elsewhere, they're leading them to want a cheaper phone from a different carrier which loses them a plan which means they lose that money.

In the end, I see this as a huge opportunity they're missing out by doing this. That means EVERYONE that shops on Amazon cannot purchase a phone from them and activate service. That's a gigantic customer base right there. Sure, they all aren't shopping for AT&T cellular devices, but if they come across it and see they're selling for $0.01 and they want a new phone, bam. Service extended on AT&T and they gain that money they would have lost to a different carrier.

 

[cronos]

Hopefully they'll stop selling handsets altogether.

 

[shortylickens]

The thing is, where they make their money is the plans. By not allowing people to sign up for a phone elsewhere, they're leading them to want a cheaper phone from a different carrier which loses them a plan which means they lose that money.

In the end, I see this as a huge opportunity they're missing out by doing this. That means EVERYONE that shops on Amazon cannot purchase a phone from them and activate service. That's a gigantic customer base right there. Sure, they all aren't shopping for AT&T cellular devices, but if they come across it and see they're selling for $0.01 and they want a new phone, bam. Service extended on AT&T and they gain that money they would have lost to a different carrier.

Yeah Amazon has way more phones than the official AT&T site. This is especially important for Nokia users (the largest phone make in the world by the way) because I think right now AT&T only has the E71.

 

[Deeko]

It's a double-edged sword though - I don't think a lot of people realize that if you have an issue with a handset, and you went through a third party retailer, that you're required to go back to them for any issues with the handset, including "warranty" issues. This highly inconveniences customers, especially if they use retailers with an online-only presence.

Damned if you do, damned if you don't.

Granted this was Verizon, not AT&T, but when I got a Droid from Best Buy, I dealt with Verizon for warranty issues. They didn't complain.

 

[the DRIZZLE]

The thing is, where they make their money is the plans. By not allowing people to sign up for a phone elsewhere, they're leading them to want a cheaper phone from a different carrier which loses them a plan which means they lose that money.

In the end, I see this as a huge opportunity they're missing out by doing this. That means EVERYONE that shops on Amazon cannot purchase a phone from them and activate service. That's a gigantic customer base right there. Sure, they all aren't shopping for AT&T cellular devices, but if they come across it and see they're selling for $0.01 and they want a new phone, bam. Service extended on AT&T and they gain that money they would have lost to a different carrier.

You have to estimate out how many of those Amazon customer would have bought the phone from att anyway vs how many wouldn't and the how much its costing you. I'm not saying I agree but without looking at the data they have its hard to criticize t. I will say that on the surface the third party retailers do seem to provide a good opportunity to segment the market by customer price sensitivity.

 

[akugami]

Seriously? WTF.

That's one of the more retarded policies. Yes. It's true. On the plus side you can just use your home's Wifi. You'll still get screwed if you had Wifi off to conserve power and forgot to turn it on.


If AT&T goes ahead with this "no other online retailer but us" policy then I see AT&T's customer base taking a big drop. Sure, AT&T gives a kick-back to others like Wirefly or Amazon but they still make a profit. Without the added presence that online retailers give to AT&T, they wouldn't even have that. Hell, just look at the iPhone. I'm sure a lot of people ordered through Apple's online website rather than AT&T. If Apple can't sell AT&T iPhone's online then they'll only push Verizon ones. Watch AT&T's customer base drop further.

 

[AstroManLuca]

I can't quite tell from the article... are they stopping all third-party sales or just third-party online sales? Will you still be able to go to a Best Buy location and buy an AT&T phone, even if you can't buy one from Best Buy's website?

 

[shortylickens]

I can't quite tell from the article... are they stopping all third-party sales or just third-party online sales? Will you still be able to go to a Best Buy location and buy an AT&T phone, even if you can't buy one from Best Buy's website?

Looks like just online.
BUT, Best Buy probably enjoys being able to sell the same stuff online as they have in store. Again I foresee AT&T just flat out losing sales cuz they cut off avenues of business.

 

[rudeguy]

I thought the microcell was just for voice? But yeah, it does use your minutes to use the thing even though it uses your home network.

it is

It uses minutes not data

 

[rudeguy]

I can't quite tell from the article... are they stopping all third-party sales or just third-party online sales? Will you still be able to go to a Best Buy location and buy an AT&T phone, even if you can't buy one from Best Buy's website?

most likely online

Check out Eli's thread about his Droid warranty. Third party online sites are a nightmare.