Wednesday, November 18, 2009
Time to Cut AT&T Some Slack, iPhone Users?
Since 2008, AT&T’s network in and around San Francisco has experienced an increase in 3G data traffic of 2,000 percent. If you find this metric as astonishing as I do, consider this: The increase in Bay Area data traffic is actually below the national average–significantly below. According to AT&T CTO John Donovan, 3G data traffic on the company’s wireless network has risen nearly 5,000 percent nationally in the past 12 quarters.
Bay Area iPhone users, relief is on the way. AT&T has almost completed a $65 million upgrade to its network in the region. The carrier has upgraded close to 850 cell sites in an effort to better handle the massive surge in data traffic it has seen in and around San Francisco since the debut of iPhone. And make no mistake: The surge has been massive. 
If AT&T took offense at Verizon’s “There’s a Map for That” ad campaign, wait until it gets a load of its rival’s newest ad spots. Unfazed by AT&T’s litigious reply to its first effort, Verizon rolled out a trio of new anti-AT&T ads over the weekend and they are brutal in their criticism of the carrier’s network coverage.
Given the havoc the econalypse has played with other industries, the smart-phone market is in extraordinarily good shape. Shipments of the devices rose 4.2 percent to 43.3 million globally compared with 41.5 million shipped in third quarter of 2008. 
If AT&T’s lawsuit over Verizon’s allegedly misleading “there’s a map for that” ad wasn’t a public relations mistake to begin with, it will be by the time Verizon gets through with it. Responding to the suit today, Verizon rep Jeffrey Nelson used it to stoke public perception that AT&T’s network is inferior to Verizon’s.
Apple’s internationally coveted iPhone finally arrived at market in China last week and by most accounts its debut was uncharacteristically muted. There is “no sign of the sort of sellout reception that greeted the smart phone at its introduction in other countries,” The Wall Street Journal reported. Clearly, the device’s Chinese launch wasn’t the rousing success to which we’ve become accustomed. That said, it probably wasn’t quite the bust it’s been made out to be, either.
If you can’t beat ’em, sue ’em. That seems to be the thinking at Nokia. Today, the Finnish cellphone giant, which has been struggling to develop a worthy competitor to the iPhone, filed suit against Apple, claiming the popular smart phone infringes upon a number of Nokia patents. 
Looks like tethering on Apple’s iPhone is still a matter of “when and not if,” as AT&T likes to say. Though the carrier’s decision to allow Internet telephony apps on its 3G network has lead some to speculate that the company will soon allow data tethering as well, that’s not the case. Evidently, there’s still a while to wait until AT&T supports that long-promised feature.
A complete reversal of its earlier policy restricting Internet telephone services to Wi-Fi only, AT&T’s decision to allow iPhone owners to use such services on its 3G network has gone over well with consumers and with Apple. But it hasn’t gone over well with AT&T investors. Shares in the company slipped on news of the decision yesterday and they’re falling still further today.
It has taken far too long, but AT&T has finally warmed to the the idea of voice-over-Internet services on its wireless network. On Tuesday afternoon, the carrier opened its 3G network to telephony apps, ending a restriction that had limited them to Wi-Fi.
“Want 5 times more 3G coverage? There’s a map for that.” That’s the cheeky slogan of a new Verizon ad reportedly set to debut during tonight’s Monday Night Football game. Riffing on the tagline from Apple’s iPhone commercials, it essentially turns widespread complaints about the quality, coverage and speed of AT&T’s network into one grand Verizon marketing campaign.
AT&T’s iPhone exclusivity deal with Apple is set to expire as early as next year, but that doesn’t necessarily mean it won’t be renewed–despite complaints about the carrier’s network. That’s the word from iSuppli, which predicts Apple will extend its agreement with AT&T because it has no reason not to.
Most entry-level phones in AT&T’s handset lineup have been able to send multimedia messages for years. Soon the most advanced will as well. The carrier on Thursday confirmed that it will offer MMS on Apple’s iPhone starting Sept. 25–about two months after the handset first began supporting the feature.
