AT&T's new year resolutions include compensation for outages

The announcement, which bears almost all the hallmarks of a post New Year's Eve moment of clarity, includes a commitment to pay compensation to both consumer and small business customers in the event of a network outage.

It applies to both fibre and mobile users. If the fibre is on the fritz for 20 minutes or longer – or if there's no mobile connectivity for an hour or more – then consumer customers will receive a bill credit equal to a full day of service.

It's not clear what affected business customers will be entitled to. AT&T simply said it will "reach out...with options to make things right." Presumably the level of compensation could depend on several factors, like the value of the contract, the service level agreement, the size of any potential loss incurred as a result of an outage and so-on.

As well as compensation for downtime, AT&T has also committed to improving customer care.

As of now, customer enquiries that are routed to tech support will be connected to an agent within five minutes, or alternatively they can schedule a call back at a more convenient time.

AT&T said it's also aiming for same or next-day technician availability to get customers back online as soon as possible. If it can't quite manage that, again, it promises to "get back to our customers as soon as possible with options to help make it right," whatever that means – maybe John Stankey will personally prostrate himself on your doorstep and beg your forgiveness. Or maybe not.

In addition, AT&T said it will make its best smartphone deals available to both new and existing customers, and won't necessarily necessitate the most expensive price plan. It also claims to include no hidden fees for AT&T Business Fibre customers.

"We've been on a multi-year journey to improve the customer experience, placing our customers at the heart of everything we do," said Jenifer Robertson, EVP and general manager of AT&T mass markets and mobility.

"Since 2019, we've invested more than $140 billion in our network and almost a billion dollars in customer care and operations, and that's brought us to where we are today – becoming the first and only carrier that offers a guarantee for wireless and fibre networks," she continued. "From offering faster solutions and enhancing the digital experience, to meeting customers on their terms and using GenAI for an expert touch, we're committed to raising the bar in the industry. This isn't about maintaining the status quo; it's about redefining it."

It shouldn't take long to see what, if any impact, AT&T's pledges have on loyalty.

Postpaid phone churn was 0.72% at the end of March 2024, noticeably down from 0.81% a year earlier.

AT&T doesn't share fibre churn. The number of connections increased to 8.6 million from 7.5 million – however, this growth is likely to have been driven primarily by AT&T's ever-expanding fibre network being available in more locations.

The end of Q1 2025 will arrive soon enough, and it will be interesting to see if these pledges have had any impact on these metrics.

"With the customer as our compass, this bold initiative embodies the very essence of our company's purpose," said Kellyn Kenny, chief growth and marketing officer at AT&T. "Customers tell us they want confidence in their service provider and offering a guarantee makes them four times more likely to choose a brand that offers one. It's about being transparent, taking action and ensuring our customers know they are supported. We're committed to delivering on our promises. We are walking the walk and talking the talk – and this is just the beginning."

The language might not be as bombastic, but the wording will be vaguely familiar to anyone who follows T-Mobile – AT&T's magenta-coloured rival has forged a reputation for making shouty, pro-consumer proclamations.

If this announcement really does mark a shift by AT&T to a more assertive tone, it will be interesting to see if there's any response from T-Mobile.

As we know all too well though, most new year's resolutions fall by the wayside after a few months, so we're not holding our breath.