Several years ago, AT&T was widely derided for the performance of its wireless network. Consumer complained about dropped calls, spotty reception, and data download speeds that were often aggravatingly slow. At the time, these criticisms were valid ones: according to industry research, AT&T boasted one of the most over-burdened networks in the country, a fact that contributed to reception and data vexations for millions of its customers. The Apple iPhone, then carried exclusively by AT&T, was largely to blame for the tremendous rise in data use and the subsequent overload on the company’s network.
The negative perception of AT&T’s network has continued until today. According to John Stankey, the company’s CEO, customers have a “neutral” perception of AT&T’s network performance. But this assessment, if anything, may have been an inaccurate and optimistic one considering that Consumer Reports ranked AT&T last among United States providers when it came to customer satisfaction. It is believed that network perception plays a central role in this.
But a funny thing happened last year: AT&T spent about $20 billion dollars improving its network offerings and its capacity. The company built two 4G networks, improved drop-call frequencies by a 25% margin, and made enhancements to almost 50,000 networks nationwide. AT&T now offers one of the strongest networks out there. Consumer perception of that network, however, remains low and stagnant.
To change this perception, the company is making a concerted push towards better informing customers of the improvements that have been made. Mobile customers now receive text messages when a network upgrade is made in their area. Furthermore, AT&T is turning its advertising efforts to upcoming network improvements in the areas of LTE and 4G HSPA+. While Verizon Wireless, its main competitor, has an advantage when it comes to LTE coverage, AT&T has far greater 3G and 4G upgrade capacities. Expect that these advantages will be strongly stressed in marketing campaigns this year.
AT&T has chosen to focus on consumer perception at an opportune time, just after the company received bad press for its T-Mobile takeover bid and just as data demands from the iPhone 4S have started to place an extra burden on nationwide capacities. As data use becomes more and more prevalent, we can only expect that network capabilities – both real and perceived – will become an increasingly vital component of mobile provider strength. Consequently, it is more important than ever that AT&T meld its poor perception with its much-improved reality.
