Seat at the Table

There was a lot of coverage online about AT&T offering sim card-only service (meaning you’d don’t need a phone).  I think it’s worth a review to understand what went wrong and what they could have done right.

For those that haven’t read about it, AT&T announced something that has been available for years (I’ve been a sim-only subscriber since it was Omnipoint in 1997).  But they announced it as a new service that requires a two-year contract (the contract part was then retracted).  It was the press angle – this is a new service – that led to a lot of technology media and enthusiasts to laugh in their articles and blogs.

And it’s not the first time.  Last year, USA Today wrote a rather large story on AT&T opening it’s network.   Again, AT&T’s network was always open by definition (they use a technology that doesn’t restrict what phone you can use).  That time, the technology crowd not only looked at AT&T funny, but USA Today as well.  Check it out here and here.

Reputation Cost with a core public and reporters

The potential reputation cost? Credibility with reporters who will now have to double check everything they hear from AT&T.  And the reputation cost for consumers? The early adopter consumers, who are also some of the most influential word of mouth consumers, will have a skepticism alert go off when they hear about a deal from AT&T. 

What they  should have done – announced it was being supported but always open (and years ahead of Verizon in that sense)

What should they have done? Instead of saying open networks or sim-only service was new, say it is now official policy that will be supported by marketing and customer service.  Perhaps this would have cost them some press in the short run (but maybe not as even support for their open network is a first), but it would have also killed the negative backlash.   Now, every time they mention these open network offerings they risk being targeted by the same media and blogs that caught them during the announcement.  In the long run, they likely would have gotten more attention with a far more positive tone. 

Who’s on AT&T’s staff or focus group?

One other suggestion is for AT&T marketing and PR to make sure they either have enthusiasts on staff or as an ongoing focus group.  That can help them catch these mistakes and better position these offerings for the market.

Here are some links to read through how it played out.

Sim deal announced here at phonemag.com and at Engadget.

Mistake caught (retraction of 2-year contract requirement) http://gigaom.com/2008/01/22/att-says-sim-contract-fiasco-a-mistake/

Again Oops – http://mobhappy.com/blog1/2008/01/22/at-no-need-for-a-contract/