Will AT&T’s Latest Service Guide Change Force You Into a Technology Migration?

Will AT&T’s latest Service Guide change force you into a Technology Migration?

Tony: 

Hello, today is Thursday, May 22^nd, 2025.  I’m tony Mangino from TC2 and this is Staying Connected.

Recently, Laura McDonald, a partner at LB3, mentioned a change AT&T made to its online terms that users of AT&T’s services should know about.  We’re happy to have Laura back on our program today to discuss this important change further. Laura, thanks for coming back!

Laura:  Tony, thanks for having me back with you again and happy to share. 

Tony:   So, before you jump into the weeds, can you tell us a little bit of background on these online terms and what they do.

Laura:   Absolutely.  As most enterprise customers know, the traditional US carriers (AT&T, Verizon, Lumen, etc) post online terms, and often contracts, that act as the foundation for their relationships with their enterprise customers.  The carriers use these terms to supplant or supplement (or both) their contractual terms with enterprises. They are usually included in an innocuous sentence with a link to the terms (often a very unhelpful link).  Some online terms are benign (service descriptions), others are ones that raise eyebrows (and concern), and all are purposefully drafted to favor the carrier.  The online terms are usually divided into general terms that cover all or substantially of the services they offer and then product specific terms.  If you don’t address these terms and put in proper orders of precedence and protections, you could find out that your actual contractual deal is much different than you thought.

Tony: Do these terms change or are they static?

Laura:  The carriers are constantly “updating” these terms, and if they have their way enterprise customers’ contracts allow them to make changes to their online terms with few protections or even written notice.

Tony:  So, you are going to tell us about a recent change?

Laura: Yes.  In mid-April AT&T changed its general terms, which apply to pretty much all its wireline services, to allow it much broader leeway to migrate services as part of what it calls a “Technology Migration”. 

Tony:  Is this related to AT&T’s migration of legacy services?

Laura: Yes, and more.  AT&T has long built in the right to terminate Services on 1 years’ notice and service components (which could be a type of service – say DS1s)  on 120 days’ notice.  AT&T has used this to force customers off of grandfathered services.  In the recent changes, AT&T clarified that services in a specific geographic area (wire center, city, state or country) is considered a “Service Component” and AT&T  only needs to provide 120 days.  Not sure how terminating service in an entire country differentiates it from discontinuing a “Service” which needs 12 months, but I’m just reporting the change. 

Tony:  That seems wrong, and let me guess, they can give you notice by posting online right?

Laura:  Tony, you’ve read the playbook.  Notice can be in the guide, by email, or as in the customer agreement.

Tony:  Was that the only change?

Laura:  No.  AT&T added a whole new right to “migrate” services that are already installed so long as:

• The alternative service provides a similar functionality and
• The existing services is “expected to be retired or is being replaced”

AT&T will give customers notice (again via the Guide  (which most folks don’t expect this type of notice to appear), via email or as required in the customer contract).  AT&T will give notice of the cutover window when service may not be available and actions that the customer has to take to facilitate the migration. 

Tony:   Wait, wait, wait…who decides if the functionality is similar?   

Laura:  Good question.  It appears that is AT&T’s decision, and there are opportunities for problems, but AT&T does build in some customer protections.

Tony: I’m skeptical, what  are the protections?

Laura:  AT&T states it will implement the service technology migration in a manner designed to minimize service disruption and to promote continuity of service to customers.  And AT&T states that MRCs and usage rates applicable to the existing Service prior to the service Technology Migration will not increase due to the migration.     

Tony:  Well, that sounds good. What’s the catch?

Laura:  A couple of things:  Let’s start with the no disruption statement.  AT&T also states that Service interruptions may occur during the migration and outages during the migration are not eligible for SLA credits.   Next, let’s go to the functionally similar statement.  AT&T states that the migration may involve changes to the service or service features.    Now, let’s go to the no change in rates.  The language is carefully written.  While the MRC and usage applicable to the existing Service prior to the migration will not increase, AT&T expressly states that the rates “may be modified after [the Migration] by AT&T subject to notice or other requirements.  Also, the customer may face one-time charges associated with the disconnection of the existing service and the installation or activation of the new service.  And, AT&T can notify you of changes to the Service, features and function, options, and “applicable rates, terms and conditions applicable to” the Migrated Service.

Tony:  Great, what I’m hearing is that AT&T can migrate your service, you may get notice via the service guide, and the replacement service may cost you.  Is there anything a customer can do?

Laura:  Yes. First of all, the Service Guide does state that if the customer does not accept the migration at a site identified, the customer can notify AT&T that it will submit a disconnect order for the impacted service before the announced migration date.  If the customer fails to act (or see the notice) AT&T will go forward with the migration. So, it’s a bit of a catch 22 – if you see it, you can’t keep your existing service, you have to disconnect.  And if you don’t act, you get the new service.

Tony:  So basically, you can accept the service migration or take the “nuclear” option of disconnecting the service…I’ve worked with you a long time, you must have other suggestions.   And I bet you will start by looking at your contact.

Laura: Of course, you know me well.  An enterprise may have protective language already in place.  One provision may give an enterprise the right to object to material and adverse provisions in the Service Guide.  Big caveat – often these are time barred so if an enterprise is concerned look and act ASAP.  Second, draft provisions in your contract so that:  1) AT&T has to give you written notice to the right people (not just by the service guide) with enough time to assess the situation and make a decision.  2) if you have critical services, they are carved out or better still state that this provision doesn’t apply to your deal at all; 3) address migrations in your service schedules or MSAs so that changes to the guide like this don’t cause a crisis; and 4) make sure that if you do have to disconnect an existing service based on this migration, it is without liability to you.  There are other ways to skin this cat, but most importantly stay in front of these service guide changes and negotiate a strong contract so you are not the proverbial “cat”. 

Tony:  Speaking of staying in front of the service guide changes, my colleague Keith Cook here at TC2 was describing to me another recent change in the AT&T guides that is having a material impact on the cost of SIP Voice service, or BVoIP as AT&T calls it.  A few months ago, AT&T increased the list rates for the Concurrent Call Paths (CCPs), and the cost for interstate SIP voice usage.  So, if your contract only contains the discounts and the list rates can float with the service guide, then the result is an approximately 20% increase in the net rates for the SIP trunks themselves and usage. 

Laura:  Like I said Tony, you could find out that your actual contractual deal is much different than you thought!

Tony: As usual, Laura, you have given us a lot to think about.  Thank you for joining us again.

If you’d like to learn more about how to effectively manage your deal in the face of supplier service guides or you have other ICT needs, you can contact Laura, or me, or any of our LB3 and TC2 colleagues by giving us a call or shooting us an email.  You can also stay up to date by subscribing to Staying Connected, by checking out our websites, and by following us on LinkedIn.