AT&T Customers Unhappy with $5 Credit for Cellphone Outage
AT&T customers are expressing their dissatisfaction with the $5 credit that the company is offering as compensation for a massive service disruption last week. Many argue that $5 is no longer sufficient to buy anything of value in today’s economy and does not adequately make up for the inconvenience caused by the outage.
Consumers took to social media platforms to voice their disappointment with AT&T’s credit, using humor to highlight the insignificance of $5. Some remarked that the amount could only buy “5/6ths of a box of Thin Mints” or “a cup of ice or an 8 oz carton of milk.” Others criticized the company for not doing enough for its loyal customers.
One disgruntled user wrote, “The fact that they’re giving us a $5 credit is a joke! My phone wasn’t working for 6 hours, and you think that’s equivalent to $5???” Another customer, Jeremy Elanaya, a talent manager, shared his experience of being affected by the outage during a work trip to Poland. Despite traveling for roughly 10 hours, his service still hadn’t been restored.
“It just went out at the worst time imaginable,” Elanaya said. “When you throw $5 at someone’s face, it’s like you’re telling me you don’t care if it works or not. And as a company with a multi-billion-dollar valuation, I believe your service should be worth more.”
Last Thursday, approximately 1.5 million AT&T customers, like Elanaya, reported being unable to make calls, send texts, access the internet, or reach emergency services for about 12 hours. The outage was attributed to an incorrect process used during network expansion. In response to the disruption, AT&T announced that it would credit affected customers with $5 each, claiming that it was the average cost of a full day of service. The credit is expected to appear in customers’ accounts within one to two business cycles.
AT&T’s estimation of the cost of a full day of service aligns with industry figures. J.D. Power reports that the average monthly wireless payment is now $157, equating to approximately $5.20 per day. Compared to 2019 when the average payment was $146, costs have risen steadily.
While some may find the $5 credit disappointing, it is important to note that there are no legal requirements for refunds or compensation in situations like these. Teresa Murray, the consumer-watchdog director at U.S. Public Interest Research Group, explained that the Federal Communications Commission (FCC) does not offer any recourse in such cases. She suggested that concerned individuals take up the matter with the FCC if they feel the need for regulation.
Murray described the $5 credit as “kind of insulting” and argued that it would not be appropriate compensation for most people considering the disruption caused by the outage. She also highlighted other ways in which wireless carriers shortchange their customers, such as charging for spam-call filters that she believes should be provided for free.
In addition, companies often add unauthorized charges to bills, a practice known as “phone-bill cramming.” These charges often have ambiguous descriptions like “service fee,” “service charge,” “other fees,” “voicemail,” “mail server,” “calling plan,” and “membership.” Murray believes these charges are unfair and should be addressed by regulatory bodies.
AT&T’s response to questions about the $5 credit quoted CEO John Stankey’s letter to employees. While he acknowledged that outages can have significant impacts on subscribers, he stated that the approach taken is manageable and aligns with their business objectives and financial guidance for 2024.
The discontent expressed by AT&T customers highlights the increasing costs of cellphone services and the changing economy. MarketWatch invites readers to share their experiences with rising costs and how it affects their cellphone bills. Those interested in sharing their stories can write to readerstories@marketwatch.com, providing their name and contact information for potential follow-up from a reporter.
