AT&T’s ConnecTech – a brilliant move?

I heard about AT&T’s new tech support service ConnecTech last week and thought it was a lost cause. Hoping to make money in home-based tech support seems tricky. I did it for a few years in the late nineties and any sort of flat rate service plan is likely to be a losing proposition. There is a plethora of hardware configs to deal with and many old ladies that love to chit chat with their new visitors. If you aren’t charging hourly and, ideally, selling and supporting your own hardware, you could be in for tough times financially.

So, how could this be a great move for AT&T? The secret lies in wghst they are trying to sell. Unlike Best Buy’s Geek Squad, ConnecTech doesn’t need to make money off the service or even upselling hardware. AT&T is hoping ConnecTech customers will turn into AT&T monthly customers. Monthly services bring AT&T fat and scalable profits, neither of which ConnecTech will bring on it’s own.

Paying $69 dollars for computer and wifi configuration in your home is a bargain for nontechy people or those on a time crunch, but paying $200/month for your Internet/phone/cable for the rest of your tech-dependent life is where the real money is.