AT&T apologized for last week’s service outage with a $5 credit, but some customers rebuffed the offer, saying they would have rather gotten nothing at all.
The outage lasted about seven hours last Thursday and was caused by “the application and execution of an incorrect process used while working to expand our network,” the company’s CEO, John Stankey, said in a Sunday letter.
To make things right, Stankey said AT&T would compensate the affected customers, which were located in cities such as Houston, Atlanta, and Chicago, among others, with a $5 credit that will be automatically credited to them in one or two billing cycles, according to the letter.
“I believe that crediting those customers for essentially a full day of service is the right thing to do,” Stankey wrote in the letter.
When reached for comment, a spokesperson for AT&T directed Fortune to Stankey’s public letter.
AT&T could end up paying out $140 million to placate customers, which would amount to roughly 2% of the company’s quarterly mobility earnings before interest, taxes, depreciation, and amortization, according to Jim Patterson, the CEO of telecommunications advisory services firm Patterson Advisory Group. AT&T’s biggest competitor, Verizon, does not offer credit for service outages, according to its website.
But while AT&T may lose out on millions of dollars in revenue thanks to the $5 apology credit, the gesture was poorly received by customers who felt it was insufficient.
Thank you @ATT for the $5 credit for a work day phone outage. On behalf of everyone who pays $200/month for service, we are not at all baffled at your ignorance. We are so grateful for the $5 as it covered the cost of breathing. pic.twitter.com/op3cXRrf7z
— Kristina Hart (@edgykristina) February 25, 2024
Some customers pointed out the payment was insignificant compared to what they pay every month, and called out the company for “corporate greed.”
#ATT wow, just got a notification from AT&T, they are issuing me a credit for their outage… whopping 5$, bout as generous as trump! Typical corporate greed
— Danny (@Dannyb4357) February 25, 2024
If I lose service for half a day and @ATT responds with a $5 credit?! Nope. I’m switching carriers immediately. That is insulting.
— I CÉID WHAT I CÉID! (@CharleyBravoJr) February 26, 2024
AT&T has already made changes to prevent more errors, Stankey said in the Sunday letter, but another outage is possible in the future.
“This is not our first network outage, and it won’t be our last—unfortunately, it’s the reality of our business,” Stankey said.
