AT&T
will offer customers impacted by a spate of service outages last week a $5 credit as compensation, the telecommunications company’s CEO said.
Thousands of AT&T customers reported service issues last Thursday, including problems making and receiving calls. The company said that an initial review showed that the outages were the result of the application and execution of an incorrect process used in expanding its network and not a cyber attack.
Outages began early Thursday with about three-quarters of customers still able to access the network and the remaining customers reconnected through the morning, AT&T said. The network was normalized by around noon.
“No matter the timing, one thing is clear – we let down many of our customers, including many of you and your families. For that, we apologize,” AT&T CEO John Stankey said in a statement on Sunday.
For consumer and small business customers most impacted by the outage, AT&T is automatically applying an account credit to compensate them, Stankey said, adding that impacted prepaid customers will have options available to them. On its website, AT&T noted that customers were eligible for one $5 credit per AT&T Wireless account.
“We issue bills every day, so customers will see the credit in 1-2 bill cycles depending on when their bill closes,” AT&T said. “Most credits will be posted in the next billing cycle.”
“I believe that crediting those customers for essentially a full day of service is the right thing to do,” Stankey said. “Despite that impact to the business, I believe this approach is fully manageable while achieving the 2024 business objectives we have set for ourselves and our stated financial guidance.”
When AT&T filed quarterly earnings last month, it said it expected adjusted earnings in fiscal 2024 of between $2.15 and $2.25 a share, which at the time was below Wall Street estimates of $2.46.
AT&T stock was up 0.1% in premarket trading Monday, while
Verizon Communications
was flat,
T-Mobile
gained 0.2%, and the
S&P 500
was off 0.1%.
Write to Jack Denton at jack.denton@barrons.com
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