June 12th, 2009
AT&T's really bad week: The network reputation hits keep coming
It’s safe to say AT&T is ready for the weekend. The telecom giant has had a horrid week with a backlash against iPhone 3G S and complaints about the network. The latter item may create the most lasting damage.
For now, much of the focus is on AT&T’s upgrade pricing for the iPhone 3G S. Simply put, if you want the new iPhone and you’re still under contract you won’t get it for $199. You’re on the hook for $399. Apple iPhone fans, the types who are used to upgrading when a new device is available, are pushing a Twitter petition. AT&T informs folks that it is listening to the complaints.
Lost in this hubbub are the anecdotal signs that the reputation of AT&T’s network is taking a hit. When the Apple-AT&T exclusive iPhone deal ends we may learn that AT&T emerged with its reputation in tatters. A bad reliability reputation will last well beyond the iPhone exclusive. Let’s recap the signs that AT&T’s network is becoming a punch line:
- As reported by Sam Diaz, WWDC attendees chuckled when AT&T was mentioned at the iPhone 3G S launch. Apple was laughed at when it was mentioned that AT&T would support MMS. AT&T wasn’t mentioned in the same sentence with tethering. And you know that “S” is a joke waiting to happen. Speed? Try slow.
- AT&T promises a significantly faster network. That’s good news for iPhone users. The bad news: It’s an admission that AT&T can’t handle the iPhone traffic and is slow about upgrading its network.
- Verizon Wireless is deftly taking advantage of AT&T’s network troubles. Last month, Verizon Wireless chief Lowell McAdam said that AT&T’s “ceiling for their network will be the floor for our network.” McAdam called AT&T’s announcement on its network upgrade old news—about a year old. He also noted AT&T’s promises to upgrade speed are spin.
- Even Howard Stern, who chose a BlackBerry Bold over the Palm Pre, notes that he can’t make calls on AT&T’s network without being dropped repeatedly. Stern’s sidekick Artie Lange—and others on staff—mention that Verizon Wireless is flawless. Verizon Wireless usually has to pay for a commercial like that.
And the hits just keep coming. Don’t be surprised if Jay Leno and David Letterman start knocking AT&T in monologues. It’s not immediately clear how AT&T can counter the perception that its network can’t hang with heavy data usage, but it better figure out something quick.
It’s nice that AT&T is listening to the iPhone pricing backlash, but it may be focusing on the wrong problem.
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
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