November 6th, 2008
AT&T adds value to iPhone with expanded Web connectivity
One of the common themes at Dreamforce and Web 2.0 Summit, both in San Francisco this week, is that companies that add value to their products and services during this economic downturn are the ones that will be best-positioned when the country finally gets its finances back in order.
This time it’s AT&T - the sole provider of iPhone service in the U.S. - that’s trying to up the value of the popular smartphone. The company confirmed today that it will unlock the iPhone’s 3G data connection early next year, allowing users to tether it to a laptop for web surfing on the bigger screen. (Techmeme) Even if there’s an extra charge every month, this is bound to be a hit right out of the gate. Morgan Stanley Internet analyst Mary Meeker said at Web 2.o yesterday that cell modem use is a growing market. More and more users are picking up air cards from their wireless providers and surfing the Web on trains, in cabs or even in a park. I know I use mine all the time.
AT&T also said today that it plans to buy Wi-Fi network provider Wayport for $275 million in cash, a deal that would make AT&T a powerhouse in the Wi-Fi hotspot business, according to CNET. It’s lineup of hotspots already includes Starbucks coffee shops. The Wayport deal would add McDonald’s restaurants and hotel chains such as Wyndham. In all, it’s Wi-Fi network will grow to 20,000 locations in the U.S. and 80,000 worldwide.
The Wayport deal will be a nice little bonus for iPhone users, who were given free Wi-Fi access at all AT&T Wi-Fi hotspots last week. (There’s that aded value, again.)
AT&T expects to close the Wayport deal this quarter.
Sam Diaz is a senior editor at ZDNet. See his full profile and disclosure of his industry affiliations.
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