AT&T Wireless Services Inc. said last week it was making progress on fixing a software glitch that has prevented the carrier from activating new GSM customers, converting current TDMA customers to its GSM network or accessing any of its current GSM customers’ information since the beginning of this month.
“We’re continuing to move exponentially in the right direction,” said AT&T Wireless spokesman Mark Siegel.
The glitch reportedly occurred when the carrier attempted to implement a new software program designed to manage customer accounts for its so-called next-generation GSM/GPRS network. Industry sources claim the carrier attempted the switch without running a parallel back up and when the new software crashed, it took out the entire system.
A number of dealers contacted by RCR Wireless News said they have been unable to activate GSM customers since Nov.1 when the glitch first appeared and that there has been little information from AT&T Wireless on when the service would be fully operational.
Analysts noted the glitch is preventing AT&T Wireless from accessing information on its more than 3 million GSM customers, and that approximately 11,000 gross customer additions per day could be affected by the problem.
“We would expect between 33 percent and 50 percent of those frustrated by the activation glitch to seek an alternative carrier after a few days,” noted SG Cowen telecommunications analyst Thomas Watts.
A New Jersey area dealer who wished to remain anonymous said only occasionally has he been able to activate customers since early last week. He also said he was told by the carrier that he could not make any changes to current GSM customers’ rate plans or upgrade TDMA customers to GSM accounts until at least last Friday. By the end of last week, the dealer noted AT&T Wireless had started taking down customer information for migration to the GSM network by hand and that it warned it would take at least 72 hours before the customers would be activated on the network.
“This is not what [AT&T Wireless] needs at this time,” the dealer said. “People already know the GSM network has terrible coverage, that the rate plans are not competitive and it charges customers too much for roaming on its national plans compared with T-Mobile and Cingular.”
A Houston-area dealer reported similar problems late last week and said he was also having trouble activating TDMA customers, though AT&T Wireless said the software issue was only affecting its GSM network.
SG Cowen, which downgraded its rating on AT&T Wireless last week, added that while it did not expect any long-term consequences from the glitch, AT&T Wireless needed to get the situation under control prior to the government’s Nov. 24 wireless local number portability mandate and the upcoming holiday shopping season.
“With LNP implementation only weeks away, and the important holiday shopping season following shortly afterwards, we believe it is imperative that [AT&T Wireless] resolve all activation issues in the next few days,” Watts said.
