A Rough Week for AT&T (T)

Not to be a Debbie Downer, but subscribing to AT&T's (NYSE: T) service is like settling down and getting married; It seems like a good idea when you first do it, but excitement fades quickly after the honeymoon.

AT&T is having a rough week, and it's only Wednesday. Recently, reports from the Wall Street Journal and other sources have stated that AT&T has given up their lawsuit against Verizon's (NYSE: VZ) advertisement campaign of "There's A Map For That." Losing a lawsuit and walking away with your tail between your legs? There’s no map for that.

Adding to the sting, the latest issue of Consumer Reports recently rolled out a survey of 50,000 wireless customers in 26 states asking them to rate their cell phone service. The rankings are as follows:

1. Verizon Wireless;
   
2. T-Mobile;
   
3. Sprint (NYSE: S); and
   
4. AT&T.

Although ranked last in this category, AT&T had the best Smartphone with Apple's (NASDAQ: AAPL) iPhone. Enough respondents were satisfied enough with the phone that 98% said they would buy it again, compared with 79% of buyers with other phones. Admittedly, many of the calling problems may be to the massive bandwidth that the iPhone uses, but didn't AT&T brag about multitasking in their commercials?

It is also expected that AT&T will lose the iPhone exclusive deal when the contract expires in 2010. Apple could bring the iPhone to Verizon, T-Mobile or Sprint. Can you say defections?

Oh, and AT&T is a sponsor of Tiger Woods. Man, is it only Wednesday?