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AT&T Inc (NYSE:T) announced it will offer a billing credit to customers affected by a significant network outage last week, impacting subscribers nationwide.
The outage, which disrupted service for several hours, will lead to a one-time $5 credit for eligible consumer and small-business accounts within two billing cycles, as stated by CEO John Stankey.
However, this credit excludes AT&T’s business accounts and prepaid services like Cricket Wireless, though some prepaid customers may have other options, the Wall Street Journal reports.
Stankey assured that the cost of these reimbursements is manageable and will not deter the company from achieving its 2024 business goals or financial guidance.
AT&T experienced a significant network outage beginning Thursday morning, leading to thousands of customer complaints and prompting an immediate investigation by the company.
The blackout prompted an investigation by the Federal Communications Commission (FCC).
While AT&T took steps to prevent future occurrences and advised the use of Wi-Fi calling during the disruption, the cause of the outage remains undisclosed, and there was no confirmation of a cyber attack.
The outage, attributed to an incorrect process during AT&T’s wireless network expansion, began early Thursday morning and lasted into the afternoon.
It affected cellphones, smartwatches, and tablets on AT&T’s network and caused issues for phones on other networks trying to reach AT&T customers.
Over 1.5 million outage reports came from major cities across the U.S., including Houston, Chicago, Miami, and New York City.
AT&T, which serves over 90 million U.S. cellphone subscribers, did not disclose the total number of customers who lost service.
Despite the inconvenience, Stankey emphasized the importance of the company’s response to such incidents, acknowledging that while not the first, this outage will unlikely be the last.
He stressed the significance of reacting, adapting, and improving to meet customer expectations and needs.
In January, AT&T reported fiscal fourth-quarter 2023 operating revenues of $32.0 billion, up 2.2% year-over-year, beating the consensus of $31.5 billion. Adjusted EPS of $0.54 missed the consensus of $0.56.
Price Action: T shares traded higher by 0.12% at $16.82 premarket on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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