BulletProofBlog the blog on crisis communications

Apple enthusiasts rejoiced at the news of a new, faster, more powerful iPhone 3GS Monday - that is until they found out that AT&T would not subsidize the upgrade cost for current users.

AT&T' s position not to allow upgrades for current customers has produced fast and furious backlash. Consumers quickly took to the Internet and formed a Twitter petition calling on AT&T to change its position.

More than 8,000 people have signed the petition since it was created on Wednesday. The number of virtual signatures has also doubled in the past 24 hours - a reminder of how fast grassroots efforts can spread in today' s viral media environment.

Recently, I spoke with ComputerWorld about the steps that AT&T - which owns one of the most recognized and powerful brands in the world - should take to turn crisis into opportunity by renewing the strong commitment to customer service that the company is known for.

AT&T has made a stand-up effort to respond to complaints and questions using its social media toolbox, but it should now embrace the feedback it solicited. Offering to extend the same pricing structure to current iPhone owners will change the current perception of the company and show customers AT&T cares.

Should the company choose to step forward as an industry leader, it can generate valuable long-term customer loyalty that will be worth more than the price of a few hundred iPhones. Such a move will set AT&T apart from other wireless carriers and enable the company to settle the dispute on its own terms.

Dallas Lawrence is Vice President of Digital Media at Levick Strategic Communications and a contributing author to Bulletproof Blog.