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AT&T Raises Prices After Dropping More Calls, 4G

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MARKETING 101
DailyFeed
Its 4G phones aren't 4G. Its network drops more calls than Verizon. It's consistently rated the worst mobile provider in the country.

So of course, it's raising its prices.

AT&T is boosting the smartphone prices for customers who want an upgrade mid-contract. For the iPhone 4, iPhone 3GS, and Windows Phone 7 and Android devices, the price is increased $50 for any subscriber before their two-year contract runs out. For those on a one-year contract, the cost is increased to $150.

An AT&T spokesperson explained the situation to Boy Genius Report:

"We've updated our early upgrade and no commitment price points for smartphones and feature phones. Only customers who are not yet upgrade eligible or who do not want to sign a contract are impacted. As mobile devices become more sophisticated, their cost goes up. This change reflects the increased costs, while still allowing us to offer customers the latest device before they qualify. We're happy to discuss individual account and upgrade needs one-on-one with customers."

This makes absolute sense. After all, when AT&T is delivering service subpar to a competitor, it needs all the ill-gotten revenue it can get.

Solidifying the price increase a damn fine idea, market researcher ChangeWave surveyed over 4,000 consumers on their smartphones. When owners were asked about dropped calls in the last 90 days, guess who ranked last:


And lest you consider this a recent development, ChangeWave offered up a graph showing how this is a consistent problem with AT&T:


Even pitting the iPhone 4 on Verizon's network against AT&T's, the difference is staggering:


Considering the announcement also comes a week after AT&T confirmed that its 4G Android phones weren't, in fact, 4G, this is an extremely poor time to introduce higher fees for customers.

(See also: AT&T Kills 4G on Its Android Phones and AT&T, T-Mobile Merger Could Be Disastrous for Subscribers)
POSITION:  No positions in stocks mentioned.

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