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Category: AT&T
February 4th, 2010
AT&T says 3G is ready for streaming Sling video. Really?
I know AT&T has invested some money to improve its 3G service - yet I still find it hard to believe that the network has gone through so much work that it’s not only beefed up to handle the demands of the iPhone but now also the streaming video from a Sling Player app.
Add to that the recent news that the NexusOne will be tapping into the network and, when it hits stores, the Apple iPad, too. I hope I’m wrong when I say that I’m skeptical about AT&T’s readiness, especially since the network couldn’t handle the traffic during the Consumer Electronics Show in Las Vegas just last month.
The companies issues a statement today to say that a new iPhone app - which is still awaiting approval from Apple - will enable the streaming of the video content from home over 3G networks. Previously, AT&T had limited streaming from Sling players to the devices WiFi connections, saying that it was concerned about strains that it would put on the 3G network.
In a statement released today, AT&T said the company has been testing the new app since mid-December and recently notified Sling and Appl that the optimization for 3G is ready for prime time. In a statement, AT&T Mobility CEO Ralph de la Vega said:
Just as we’ve worked with Sling Media in this instance, we look forward to collaborating with other developers so that mobile customers can access a wider, more bandwidth-sensitive, and powerful range of applications in the future. Collaboration with developers like Sling Media ensures that all apps are optimized for our 3G network to conserve wireless spectrum and reduce the risk that an app will cause such extreme levels of congestion that they disrupt the experience of other wireless customers.
Hmmmm. We’ll see.
February 3rd, 2010
Is Android buzz starting to tarnish the iPhone's luster?
I pinched and zoomed the Google Maps images on my Nexus One smartphone this morning, the same pinch-and-zoom feature that iPhone (and iPod Touch) owners have been using for some time.
The pinch-and-zoom experience on the Nexus One, which was unlocked with an OS update released yesterday, was nice. It wasn’t one of those write-home-to-mom, earth-shattering experiences - but it was nice.
To be honest, Google didn’t really need to enable multi-touch, as the technology is known, to sell me on the Android experience. I was already impressed with Google Maps - as well as several features - on Android devices and already considered them to be superior to the iPhone experience.
Actually, as long as I’m being honest, my fanboy love for Apple products has actually been slipping in recent months. Sure, I still love my Macbook - but I’m intrigued by what Google might be able to pull off with its Chrome OS, which is in the works still. (Did you catch the recent buzz about a Google Tablet?) I absolutely like my iPod Touch for playing games, watching videos and listening to music - but I no longer feel like something in my life is missing without an iPhone.
February 1st, 2010
Nexus One for AT&T 3G on the way
A new version of the Google Nexus One phone will soon arrive for use on AT&T’s 3G network, according to a CNET News report.
Currently, the phone only works on T-Mobile in the U.S. but customers can already buy an unlocked version of it for $529 to use it on AT&T’s network - but only on AT&T’s 2.5G or EDGE networks.
The information doesn’t come from AT&T but rather from documents filed with the Federal Communications Commission and posted by CNET. When Google launched the Nexus One last month, it said the device would be available for Verizon Wireless and Sprint this Spring.
The report notes that the new version will “operate in the 3G wireless bands for WCDMA Bands I, II and V, which are used by AT&T and Canadian wireless providers Rogers, Bell Canada and Telus Mobility.”
The report said the device will likely work through most of Europe, too.
January 29th, 2010
AT&T makes network upgrade Priority No. 1; offers details
Finally.
AT&T has been taking a public relations beating over its shoddy wireless network for far too long. I know I’ve grown tired of writing about it. But, on a conference call to discuss quarterly earnings yesterday, company executives offered specifics on what they’ll be doing to beef up the network in 2010 and beyond.
In a nutshell, the company said it’s upping its investment by $2 billion over last year. The company didn’t provide a hard number but said it is ramping up its capital spending. Last year, it spent $17.3 billion. This year, that number will be between $18 billion and $19 billion. AT&T Operations President and CEO John Stankey said, “Wireless is our No. 1 investment priority.”
Specifically, the company addressed two key markets: San Francisco and New York City, which have been particularly troublesome areas given the “large population centers, very sophisticated users with high expectations, and very high volumes” in those regions.
Rather than try to paraphrase the specific details, here’s what AT&T Operations President and CEO John Stankey said on the call about the progress made in the last 90 days:
January 28th, 2010
AT&T earnings: E-readers, iPhone, netbooks propel wireless subscriber gains
AT&T added 2.7 million net wireless subscribers in the fourth quarter, its second-best gain in its history courtesy of e-readers such as Sony’s eReader and Barnes & Noble’s nook, netbooks and the iPhone. The gains put it a little more than 2 million subscribers or so behind the largest wireless carrier, Verizon.
The company’s fourth quarter earnings met expectations Thursday, but what’s notable is AT&T’s wireless momentum. AT&T’s net subscriber additions gave it 85.1 million subscribers at the end of 2009. For comparison’s sake, Verizon ended the year with 87.5 million and added 1.2 net retail customers in the fourth quarter.
January 26th, 2010
FCC queries Google, wireless carriers on termination fees
The Federal Communications Commission has sent letters to AT&T, Google, Sprint Nextel, T-Mobile and Verizon Wireless looking for answers about the rationale for early termination fees.
Early termination fees are levies paid when a consumer ends a mobile contract early. In a series of letters, the FCC said:
We recognize that there may be various rationales for ETFs. At the same time, these fees are often substantial (and in some cases are increasing) and have an important impact on consumers’ ability to switch carriers. We therefore believe it is essential that consumers fully understand what they are signing up for—both in the short term and over the life of the contract—when they accept a service plan with an early termination fee.
The letters to carriers aren’t all that surprising, but the one to Google is notable. The FCC wants to be “adequately informed” about the equipment recovery fee that Google charges related to the Nexus One. Google’s fee, $350, is in addition to any fees imposed by T-Mobile.
Google’s $350 ETF makes sense to bean counters; Annoys customers
Google’s introduction of the Nexus One handset presents consumers with new options for obtaining mobile wireless service, from a new entrant in the wireless phone market. The Commission welcomes new choices for consumers and new entry into the market because it recognizes that robust competition benefits consumers by accommodating the wide variety of consumers’ communications needs.
At the same time, where new options may subject consumers to substantial ETFs, potentially from more than one entity, the Commission has a special interest in ensuring that consumers have a clear and complete understanding of the rates, terms, and conditions on which the communications services are being offered and the rationale for those rates, terms, and conditions. The combination of ETFs from Google and T-Mobile for the Nexus One is also unique among the four major national carriers. Consumers have been surprised by this policy and by its financial impact. Please let us know your rationale(s) for these combined fees, and whether you have coordinated or will coordinate on these fees and on the disclosure of their combined effect.
In response to the queries, the CTIA said:
While we understand that the FCC’s Consumer Task Force is only looking into the issue of early termination fees, we hope that there is a recognition by the FCC that these fees are part of the rate and rate structure that allows wireless carriers to, among other things, subsidize phone purchases. Additionally, consumers of all of the carriers that received letters from the FCC have multiple options when it comes choosing plans and devices without early termination fees. About 20 percent of Americans have chosen a prepaid plan without a contract. It is also important to note that consumers can avoid ETFs by completing the contract terms.
Related: Google’s Nexus One: Is it super? And is there a market for a superphone?
January 20th, 2010
Microsoft creates legal triangle with TiVo-AT&T over DVR patents
In what’s become an ugly triangle of legal disputes over DVR patents, Microsoft has filed suit against TiVo, a move that appears to be more about defending partner AT&T, which is being sued by TiVo in another suit.
Did you catch all that? Here’s a bullet-point breakdown:
- TiVo has sued AT&T and Verizon alleging that their video services illegally use TiVo’s time-warping technology in their DVR products.
- Microsoft’s Mediaroom product is used on AT&T’s U-Verse service.
- Microsoft alleges that TiVo uses portions of two Microsoft patents in its products or components without a license, according to Bloomberg.
- Microsoft says it can work out a licensing agreement with TiVo but TiVo says such an agreement won’t change its position on the AT&T suit. Microsoft also asks the court to allow it to intervene in the TiVo-AT&T case.
- Microsoft sues TiVo, alleging that the DVR maker “illegally uses technology related to purchasing and delivering video and the ability to display programming information,” according to a Wall Street Journal report.
Microsoft has not tried to intervene in the TiVo-Verizon suit. Verizon’s FIOS TV services does not use Microsoft’s Mediaroom technology.
January 8th, 2010
No surprise: AT&T's network can't handle iPhone usage at CES
I’m not surprised one bit to hear that the iPhone experience in Las Vegas this week was, well, poor. And I’m even less surprised to hear AT&T blame it on a large number of people using smartphones at the Consumer Electronics Show.
Well, duh! It’s only the biggest technology show of the year, full of geeks who are sure to be carrying iPhones. It’s like South-by-Southwest all over again. If you’ll recall, attendees of that show in Austin last year squawked loudly at the pretty much all but non-existent iPhone service in that city. AT&T tells the Washington Post in its Post Tech blog:
In preparation for CES, we optimized our network in Las Vegas by significantly augmenting our network capacity. However, at an event such as CES, where large numbers of people in a dense area are using smartphones over finite spectrum, periods of network congestion can occur. Our network engineers on site continue to take steps to optimize our network as needed for the large number of mobile broadband customers at CES.
Verizon, for what it’s worth, told the Post that it wasn’t experiencing any problems with its network in Las Vegas.
I’m sorry but this is getting so ridiculous that’s it’s not even funny anymore. Sure, we non-iPhone folks have been mocking the cool kids with the cool phones because they couldn’t so much as place a call or send a tweet over AT&T’s network - especially since each of them pays a minimum of $100 per month for access.
But now, I feel bad for my iPhone-carrying pals, sympathetic because they’re stuck in two-year contracts for a device that they just can’t rely on to work consistently.
The Nexus One and Droid phones that I’m playing with right now may not be as cool as an iPhone - though I would disagree - but they pretty much work consistently.
Just this week, AT&T said that it has completed a software upgrade at its 3G cell sites so it can deploy faster technology but that upgrades in New York and San Francisco are still a work in progress - for a number of reasons. Apparently, Las Vegas is a problem city, too - if large crowds show up for big technology conventions like CES.
I can’t help but wonder if AT&T can actually get its 3G act together before Verizon starts rolling out 4G later this year.
Also see:
January 6th, 2010
Verizon CEO talks 4G, importance of iPhone alternatives
You can’t win a wireless war by competing on price alone.
At the Citi Global Entertainment, Media and Telecom Conference in San Francisco, Verizon Chairman and CEO Ivan Seidenberg said that his company tries to differentiate itself by strengthening the value proposition. Sure, you have to compete on price for service plans and devices and, increasingly, data packages. But, it takes more than that.
Think about Verizon’s marketing messages - from the “Can you hear me now?” ads a few years ago to today’s “There’s a Map For That” campaign. No, there’s no iPhone offered by Verizon. And no, the company is matching pricing plans such as Sprint’s Unlimited Everything. But it is touting its network as the best and that’s paid off, he said.
“The messages about the quality of our network… is reasonably strong in the marketplace,” he said.
He didn’t resort to bashing the competition, notably AT&T, but did take a couple of small jabs. As he addressed a question about data traffic demand, he referenced “this business of 3-4 percent of the users hogging a lot of bandwidth.” On several occasions, AT&T Mobility CEO Ralph de la Vega has talked about these so-called data hogs.
In a few years, it will be 20 percent of the customers who are using that amount of data - especially as data-centric devices grow in popularity and other uses of that network, such as streaming video, become more popular. The issue has to be solved - and quickly, he said. It’s a growth issue.
The future, he said, is data. The industry, he said, is projecting that 50-60 percent of mobile traffic in the next five years could be video, which will drive even more data use.
This week, AT&T issued a statement about the progress that it’s making to its 3G networks, including some problems it’s still having in New York and San Francisco. What’s interesting is that while AT&T is talking about upgrades to 3G, Seidenberg stayed focused on rollouts of 4G, or LTE, which are expected to begin in late 2010. (He suggested the fourth quarter.)
The goal, he said, is to cover 85-90 percent of the country with 4G within 24 months of the initial rollout. Can that timeline be accelerated? Perhaps, he said, calling it an “already very aggressive schedule.”
As for an update on 4G: The trials in Seattle and Boston are going well, he said. The peak throughputs are in the range of 15-17 mbps while average throughputs are closer to the 7-9 mbps range. He said the company is “excited about the pie-enhancing capabilities of 4G.”
With that sort of speed, an iPhone on Verizon makes perfect sense, right?
Seidenberg mentioned the importance of “iconic devices” to help strengthen Verizon’s overall value proposition. He was asked about the push to offer new high-profile devices to the lineup and quickly replied with mentions of the Droid, the Eris and Nexus One - all Google Android devices. He also suggested that Palm devices could be in the future.
They’re “not quite the iPhone,” he said. “But it’s close enough for the market to be interested.”
January 6th, 2010
AT&T hurries along 3G network upgrade, but NY, SF still hurting; Here's why
Time to play a little compare and contrast. AT&T said Wednesday that it has completed a software upgrade at its 3G cell sites so it can deploy faster technology. However, the New York and San Francisco upgrades are still a work in progress due to everything from outdated technology to zoning issues.
In a nutshell, AT&T is letting folks know that it has made an incremental step in its deployment of High-Speed Packet Access (HSPA) 7.2 technology.
In a statement, AT&T said:
January 6th, 2010
Android's potential is reason enough to celebrate Nexus One
It’s easy to get excited about the new Google smartphone, called Nexus One. It’s a magnificent device and if ever there was something that could be labeled “an iPhone killer,” this is probably the closest we’ve seen of it.
And while I sort of go out on a limb with a statement like that, I don’t do so because of this specific device, but rather because of what it represents - the next wave of Android’s software and hardware enhancements and a carrier roadmap that should have other smartphone players thinking twice about their own strategies.
I’m particularly excited about the Nexus One because of its design - sleek, slim and light. I’ve been using the Droid pretty much since it launched and the only complaint I’ve had about it has been the bulkiness of it, caused by the slide-out physical keyboard that I never use. I would prefer the Nexus One on Verizon instead of T-Mobile, but that’s a temporary inconvenience. Verizon will launch in the Spring.
Also see: Google’s Nexus One: Is it super? And is there a market for superphone?
There are plenty of things to get excited about on the software and operating system side, even though the experience isn’t much different from the Droid. The integration with other Google properties, such as Gmail, calendar and especially Maps is top-notch on Droid, for example. I actually didn’t think it could get much better but then Google integrated voice technology into the navigation and mapping features and suddenly I can envision my searches getting easier to manage on a mobile device and the results coming back more relevant.
Which brings me to the next point: Google is still a search and advertising company and the execs yesterday quickly mentioned that mobile searches are up 5x. Isn’t that what’s really driving Google here? The company isn’t going to manufacture phones or provide service for them. But they do want them using Android phones and conducting Google searches - even if they don’t look like conventional searches.
So why not make it easy for consumers to shop for Android phones by putting them in an online store that’s got the brand reputation of Google behind it? After all, that’s what’s driven iPhone sales - Apple, not AT&T. Eventually, consumers should be able to choose from a lineup of Android-powered phones - some with more bells and whistles than others - and then link them to the carrier of choice.
Think about how you shop now for a Blackberry, which also has several models available on different carriers. There’s no Blackberry store where you can pick your device and then link it to a carrier and be done with it. Maybe there should be.
I overheard some people at the Google event buzzing about it being a non-event, just an announcement of a specific mobile device that was nice - but not necessarily worthy of the fanfare. But I disagree, There’s plenty of reason to celebrate because Google, with Nexus One, is showing that it will continue to raise the bar with the Android OS while its manufacturing partners continue to innovate and deliver devices that consumers want.
When Apple launched the iPhone, it revolutionized the smartphone game. But Google has come up strong in the last year and really has the potential to re-write the rules of the game. Nexus One is just the latest example of what the company - and its partners - are capable of bringing to market.
As much as I’ve said over and over again that I have iPhone envy, I have to say that after just a few hours with Nexus One - and more importantly, Android 2.1 - I would have to rethink an iPhone purchase.
I might miss Android too much.
December 28th, 2009
My top story for 2009: AT&T blunders by defending its wireless coverage
I covered a lot of topics for the Between the Lines blog in 2009 - the debates over cloud computing, Steve Jobs’ medical condition, Yahoo’s new strategies and the long-awaited release of Windows 7, among others. But the one story that stuck with me most, largely because it continues to take twists and turns, was the public relations beating that I’ve been giving to AT&T over its wireless service.
It was early January when I actually bought an iPhone and signed up for the AT&T service - only to return the device and cancel the service two weeks later. The reason: dropped calls and shoddy data service that was more the norm than the exception.
Since then, I’ve written a number of posts about AT&T’s service, hoping that maybe - just maybe - posts across the blogosphere about the poor service might just shame AT&T into making some substantial improvements. But, now in December, the service doesn’t seem to be much better, nor does AT&T seem to be ashamed of what it’s offering its customers in exchange for their $100-plus bill every month.
Consider some of the developments of just the past few months:
- AT&T took Verizon Wireless to court over an advertising campaign that used 3G coverage maps of the two companies to highlight how much better Verizon’s service was over AT&T’s. What was crazy was that AT&T argued that the ads were misleading, but not inaccurate, which gave Verizon the chance to tell AT&T that “the truth hurts.” AT&T drove more publicity to its shoddy service by bringing the lawsuit. When it lost the suit, it made headlines - and, of course, prompted Verizon to launch even more commercials around these coverage maps.
- Just as the holiday season was getting ready to kick off, Consumer Reports ranked AT&T dead last with an overall ranking of “poor” for service but it also noted that “if you’re readying to buy Apple’s iPhone, prepare for possible disappointment with its service” even though you’ll love the phone.
- In November, AT&T issued a press release to say it was wrapping up a $65 million investment in 3G upgrades for the San Francisco Bay Area - and noted that it had finished the upgrade in the Silicon Valley area earlier in the year. So the problems should be history, right? Hardly. About three weeks later, Ralph de la Vega, CEO of AT&T Mobility, said that AT&T had bolstered its coverage but still had two markets “performing at levels below our standards and that is Manhattan and San Francisco.” It’s funny that de la Vega would speak of “bringing those two markets up to the standards” even though the company said weeks earlier that it was wrapping up the upgrade. (Don’t even get me started on how de la Vega is trying to blame data hogs for its network problems and is considering curbing their usage.)
Since buying and returning that iPhone 11 months ago, I’ve been trying to shake my iPhone envy. Testing a Google Droid has been such a good experience that my feelings of envy have started to wane. Still, if the iPhone found itself on the Verizon Wireless network today, I’d be the first in line to get one. I’m definitely still interested.
Maybe that’s one of the reasons I’m determined to hold AT&T to a higher standard, to point out the network’s shortcomings and, yes, even embarrass an executive if that’s what it takes to make the company accountable. As a long-time newspaper journalist, I was taught to hold companies accountable, to ask the tough questions and that it’s OK to write something that a company might not like.
This is why I’m sticking by the AT&T story. In all honesty, I hope that AT&T gets its act together in 2010 to a point that I won’t have to write any more of these posts.
December 18th, 2009
Verizon prepares for iPhone? Don't believe the headlines
You’ve got to love the headline on the Business Week piece that went live last night: “Verizon Wireless Prepares for the iPhone.” Talk about enticing readers to click.
Unfortunately, the piece is not what you expect. The companies haven’t cut a deal that has Verizon working overtime to prepare for the device’s arrival. Likewise, Verizon’s CTO - who who talked to Business Week for this story - didn’t even suggest that a deal is coming.
Plain and simple, he said that the network is ready for the amount of traffic that iPhone users might put on a network. That’s a nice little jab at AT&T, which clearly was not ready for the demands and has taken a public relations beating because of it.
Right about now, I could go into some rant about how the iPhone is great device and that the shoddy service from AT&T has held it back. I could go off about the back-and-forth spat - which included a lawsuit - over 3G network maps for AT&T and Verizon. I could even bring up the fact that Verizon made a splashy announcement over its partnership with Google and how Google’s Android is becoming a strong competitor to the iPhone.
But I’ve written all of that already.
If there was actual news of a Verizon-Apple deal to report, you can rest assured that I’d be chasing that Business Week story to get more details on the deal. But that’s not the case here. I suspect that the editors at BW were just looking for some headlines to lure people in before they completely check out for the holidays.
I know how that can be.
Also see: Analyst: The iPhone’s next carrier is likely T-Mobile, not Verizon
December 16th, 2009
Momentum behind AT&T protest grows to point of becoming pointless
Have you heard about Fake Steve Jobs and this online protest against AT&T?
A few days ago, a blog post on Dan Lyons’ The Secret Diary of Steve Jobs blog called for iPhone users to join in a protest that would bring AT&T’s network to its knees, a message from iPhone users that they’re tired of the sub-par service (but still love the phone.) The plan was for iPhone users to all simultaneously launch a data-heavy application - maybe stream a video - on their iPhones over AT&T’s 3G network for one hour, beginning at 12 Noon Pacific Time this Friday, Dec. 18.
Obviously, it was supposed to be a joke - but the idea took off on its own, with word spreading on Twitter and Facebook, which is now a group with more than 2,000 fans. AT&T event sent a note to the Cult of Mac blog, calling the protest effort “irresponsible and pointless.” AT&T, however, didn’t call it illegal.
After all, how is this any different from an organized Denial of Service attack involving hacked bots? Just because real people are the bots instead of hijacked PCs and the attack is on a mobile data network instead of a specific domain name, doesn’t change things. In fact, couldn’t this be considered an act of terrorism? After all, AT&T runs a communications network and organized attempts to disable it might fall under one of those anti-terrorism laws.
Even Fake Steve recognizes that this particular effort isn’t the right approach. He writes in a follow-up blog post with the headline “Is Operation Chokehold illegal? Or just stupid? Should we do something else?”:
I really don’t want to cause any actual harm to my fellow AT&T users. Quite the opposite — I feel as if we’re all caught in the same horrible prison, suffering alongside one another. All we really want to do is to show AT&T how angry people are about their lousy service. A nice spike of traffic would be a way to make that known.
He suggests, based on reader feedback, that maybe the hour-long flash mob be limited to 15 minutes. He also suggests that Operation Silent Scream calls for all users to turn off their phones at the same time - but does that do anything? The final suggestion is to form an actual protest outside a store, perhaps in San Francisco, to make a physical statement.
At this point, I don’t think it matters. Getting a response from AT&T - even if just to call the effort “pointless and irresponsible” - was good enough. Wasn’t the idea just to send a message that would be received. Obviously, it’s been received. The other part of the goal was to get some publicity, right?
So, here ya go: yet another blog post that says AT&T’s service sucks. Like I’ve never written one of those before.
December 9th, 2009
AT&T's wireless chief hints at curbing iPhone data hogs
Ralph de la Vega, CEO of AT&T Mobility, played a good bit of defense, outlined the company’s upgrade plans, hinted at curbs for data hogs and said the telecom giant is improving service in New York and San Francisco.
De la Vega was chatty as usual at a UBS investor conference (Techmeme), but the big news for AT&T revolved around the following:
AT&T has bolstered its coverage, but still has two markets “performing at levels below are standards and that is Manhattan and San Francisco. De la Vega said New York service was hit by a jump in 850 megahertz spectrum that data demand picked up. That jump put pressure on AT&T’s cell sites. In San Francisco, it’s a similar story and AT&T is installing new sites. “I am very confident that you are going to see significant progress, and our company is committed to bringing those two markets up to the standards that we are seeing in the rest of the nation, he said.
Data hogs, think 3 percent of iPhone users, are generating 40 percent of data traffic. Here’s de la Vega’s full excerpt from the talk:
December 2nd, 2009
AT&T drops Verizon 3G lawsuit but bad publicity lives on
Not quite 30 days ago, AT&T did one of the worst things it could do when Verizon Wireless launched an advertising campaign that compared the two companies’ 3G coverage: it sued.
That suit set off a flurry of blog posts (including a few posted by me) and broadly raised the awareness of an advertising campaign that probably could have been overlooked by time-pressed consumers who were busy gearing up for the holiday season.
Now, less that a month later, the lawsuit has been dismissed, which follows a judge’s denial of AT&T’s request to have the commercial pulled. In the meantime, Verizon has taken its “There’s a map for that” campaign into a number of new commercials, including a new one featuring Santa and his reindeer.
AT&T’s biggest mistake was trying to squash the ad on the basis that it was misleading, instead of inaccurate. The company said that consumers were being misled into thinking that those maps represented all of AT&T’s coverage, instead of just its 3G coverage. The problem was that the commercial - and the information in it - was not inaccurate. As Verizon said in its response to the suit, “The truth hurts.”
This whole issue of AT&T’s service has been a public relations nightmare in recent weeks - and it wasn’t all just from the commercial. This week, the blogosphere lit up when a Consumer Reports article gave AT&T’s overall cell phone voice quality a “poor” rating and suggested that consumers might love the iPhone but should expect to be disappointed with the call quality on the AT&T network.
Instead of paying lawyers to file silly lawsuits that end up being dismissed less than 30 days later, AT&T might have been better off launching its own marketing campaign (No, I don’t mean that lame Luke Wilson response) or - better yet - spending some of that lawyer money on beefing up the network. Yes, I realize that AT&T continues to invest in its network - but clearly it’s not enough and it’s definitely not being done fast enough.
Previous coverage:
- Memo to AT&T: When you’re in a hole, stop digging
- AT&T’s 3G upgrade: It’s about time but is it too late?
December 2nd, 2009
Can a black eye from Consumer Reports harm AT&T, iPhone?
The blogosphere lit up yesterday when news of Consumer Reports’ cell phone satisfaction survey hit the Internet and AT&T - and, indirectly, Apple - received the blackest of black eyes by the magazine.
It wasn’t enough that Consumer Reports ranked AT&T dead last with an overall ranking of “poor” for service but it also noted that “if you’re readying to buy Apple’s iPhone, prepare for possible disappointment with its service.” The real kicker comes a bit later in the section: “On the fence about an iPhone? Our smart phone Ratings recommend a number of fine alternatives.”
Ouch.
Yes, the magazine notes that the iPhone’s popularity is off the charts and that customers love it enough to hold on to it, despite the poor service quality. And, in a response to All Things Digital’s Digital Daily blog, the company points to its low churn rate as “the surest indication of customer satisfaction.”
OK, that’s all fine and dandy for AT&T. But if you’re Steve Jobs and Apple, I can’t imagine that you’re happy about Consumer Reports suggesting that folks on the fence about the iPhone are better off choosing from “a number of fine alternatives.”
Now that I’m really becoming attached to a Motorola Droid, it’s getting easier for me to say that I don’t care which carrier lands the iPhone next. I had been holding out for an iPhone on Verizon next year, but there are no guarantees that that will happen. Now, an analyst is suggesting that T-Mobile is more likely than Verizon to be the iPhone’s No. 2 carrier in the U.S.
That’s even more reason for me - and many others like me, I’m sure - to stick with the better network and buy “one of those fine alternatives.” I did it - and, while I still have a bit of iPhone envy, my experience with Droid is taking away a lot of that. It looks like AT&T’s poor service is costing Apple some customers.
Now that Consumer Reports has given the equivalent of a thumbs-down to AT&T, I wonder if the service problems will cost Apple even more customers.
November 30th, 2009
Analyst: The iPhone's next carrier is likely T-Mobile, not Verizon
The speculation has been, if nothing else, consistent.
It goes like this: When the exclusive deal between Apple and AT&T for the iPhone comes to an end, believed to be sometime next year, the maker of the most popular smartphone will likely team up with Verizon Wireless, the carrier that has the most subscribers and the better service. That’s pretty much been the buzz for some time now.
Not so fast, though, says Thomas Weisel analyst Doug Reid, who suggests in a note today that a Verizon-Apple deal may not be as much of a slam-dunk as some (myself included) might think - or at least be hoping for. Instead, Reid suggests that T-Mobile is a more likely second carrier for the iPhone, according to a report on TheStreet.com.
For a guy who has iPhone envy but is sticking with Camp Verizon, I have to admit that I’m not thrilled with what Reid is suggesting. But, he makes some valid points. Consider the following:
- Verizon recently launched a partnership with Google’s Android and launched a pretty bold marketing campaign for the Motorola Droid, positioning it as a head-to-head competitor with the iPhone.
- Apple already sells iPhones through Germany’s T-Mobile unit so negotiating a deal in the U.S. with parent company Deutsche Telekom may be easier.
- Verizon is gearing up for launch of its 4G technology, called Long Term Evolution, or LTE. Why launch an “old” phone on old technology when it could wait to roll out a 4G iPhone on a 4G network, giving AT&T users a reason to jump ship.
- Apple and Verizon reportedly clashed over control of the device once before. Now that both are holding stronger poker hands - Apple’s iPhone is off-the-charts for popularity while Verizon has the largest customer base, as well as 3G network in the U.S. (AT&T says it has the fastest 3G network but doesn’t dispute that Verizon’s 3G network covers a greater area.)
- Finally, investors may not react kindly to a deal with T-Mobile over Verizon, largely because it keeps one of Apple’s flagship products out of the hands of the nation’s largest group of mobile phone customers.
Obviously, the players aren’t talking about what the future might hold - so it’s still all about speculation. In the meantime, Droid has been getting some strong reviews - I have one now and, while I’m still playing with it, I like what I see so far. The momentum around Google’s mobile OS is growing and the number of devices and carriers - as well as apps - on Droid will only continue to grow.
I have been ready to dump the Blackberry for some time now but had been holding out for a Verizon iPhone. The longer I wait, the more I like the Droid. At some point, if Android can offer me just as great of a user experience as the iPhone, maybe that iPhone envy of mine will go away.
After just a couple of weeks with Droid in-hand, I’m already starting to feel some of that envy slip away.
November 19th, 2009
AT&T launches Verizon counter-punch ad, keeps digging that hole
AT&T may have lost the legal battle with Verizon Wireless over a marketing campaign that compares the 3G coverage of both carriers. But that doesn’t mean AT&T is going away quietly.
The company is airing a commercial of its own, which features actor Luke Wilson inside what appears to be a warehouse, standing in front of an orange magnet board with a checklist that compares AT&T and Verizon. (Techmeme)
When it comes to the fastest 3G network, AT&T wins, Wilson says. If you want to talk and surf at the same time, AT&T wins. Who has the most popular smartphones? AT&T, of course, home of the iPhone. Who provides access to more than 100,000 apps? You guessed it. Then, in the category, he asks which has a name that starts with the letter V.
I’ll give AT&T credit for making the attempt to even the playing field but - and maybe this is just me - the commercial felt sort of low-budget, like something thrown together in haste. Cheap set. Cheap props. Marketing messages in place of statistics. What is it telling me that’s new? I’ve been hearing that “Nation’s fastest 3G network” for some time now. As far as that “talk and surf” feature, I’m assuming that refers to tethering - mostly because Mr. Wilson doesn’t elaborate - but last time I heard, AT&T still wasn’t offering that for the iPhone.
November 18th, 2009
AT&T loses lawsuit over Verizon's map commercial
It was almost a gimme. The lawsuit that AT&T filed over a Verizon commercial that compared the 3G coverage maps for the two providers in the U.S. was such a joke from the beginning, it was hard think that a judge would rule against Verizon. 
Today, a federal judge in Atlanta declined AT&T’s request for a temporary restraining order that would have forced Verizon to pull the ads, according to a CNET report.
AT&T had argued that timing was critical because the holiday season, which is a sales period for mobile devices, was approaching quickly and AT&T felt that the commercials were misleading consumers. At issue was the colors on the maps to represent 3G coverage - the AT&T map had a lot of “blank space’ to represent areas in the U.S. that didn’t have 3G coverage.
AT&T didn’t dispute the accuracy of the maps and, in a court filing earlier this week, Verizon argued that the restraining order be denied because the maps were not factually incorrect. In short, Verizon said the ads were true and that the truth hurts.
Related coverage: Memo to AT&T: When you’re in a hole, stop digging
Sam Diaz is a senior editor at ZDNet. See his full profile and disclosure of his industry affiliations.
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