Thursday, November 12, 2009
Frosty’s Winter Litigation Wonderland: AT&T Demands Verizon Pull Holiday iPhone Ads [With Full Complaint]
As clever as it is, Verizon’s reimagining of a Rankin/Bass animated Christmas television special as a criticism of AT&T’s wireless network coverage did not go over well with Ma Bell. On Wednesday, the carrier amended its complaint against Verizon, asking a federal court in Atlanta to force its rival to immediately pull the ad and two other holiday-themed spots that debuted with it.
The Palm Pre may have been the most successful handset rollout in Sprint’s history, but it hasn’t stopped the carrier from hemorrhaging customers in the months following its launch. 
How badly does AT&T want to renew its iPhone exclusivity contract with Apple? Pretty damn badly. Posting third-quarter earnings that topped Wall Street expectations this morning, AT&T said it activated a record 3.2 million iPhones during the period. Of those, 40 percent were for customers new to the carrier.
In the rhetorical battle over net neutrality, Google may have regulatory capitalism with which to bludgeon and batter AT&T, but AT&T has Benedictine nuns, an entire convent of them. In a 13-page letter to the Federal Communications Commission Wednesday, the carrier took issue with Google’s claim that its Google Voice service only blocks calls to adult sex chat lines, asserting that it also blocks calls to small businesses and Benedictine nuns.
Add Morgan Stanley’s Kathryn Huberty to the list of analysts calling for Apple to broaden the iPhone’s distribution by ending carrier exclusivity deals. In a research note issued this morning, Huberty–noting that the iPhone’s market share grew 136 percent in France when Apple switched to multicarrier agreements there–said iPhone sales could more than double if the company took a similar tack in other countries.
AT&T has finally completed the very important “internal system upgrades” that prevented it from supporting multimedia messaging service on Apple’s iPhone. And at some point late tomorrow morning, the carrier will release an update enabling MMS.
Those Apple tablet rumors just never let up, do they? Not a week after the company’s latest media event and they’re already back in force. The latest, from China Economic News, claims the device is being prepped for a February debut at a price somewhere between $799 and $999.
Apple’s iPhone continues to be AT&T’s marquee handset, though the data-guzzling “Hummer of cellphones,” as the New York Times has dubbed it, has inspired widespread customer dissatisfaction with the carrier’s network. Indeed, according to Piper Jaffray, the iPhone 3G and 3GS are AT&T’s top-selling phones.
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.
Another point worth pulling out from Piper Jaffray analyst Gene Munster’s recent research note about Apple, this one regarding AT&T’s iPhone-exclusivity deal: Munster doesn’t see it lasting much beyond this year.
According to a new survey from ChangeWave, owners of Apple’s new iPhone 3GS are quite happy with the device. Sadly, the same cannot be said of the AT&T service that accompanies it. Asked what they dislike most about the iPhone, 41 percent of respondents said the device’s short battery life. Nearly a third, 32 percent, said AT&T.
Next week looks to be a painful one for big American wireless carriers. The Federal Communications Commission has announced its agenda for Thursday’s Open Commission meeting and it implies some long days ahead for wireless industry attorneys. Among the issues to be discussed: The state of competition in the wireless market, carrier handset vendor-exclusivity deals like those between Apple and AT&T, fee-setting and “truth in billing.”
The first Android phone intended for AT&T may be scrapped before it’s ever released. Developed by HTC, the “Lancaster” had been scheduled to arrive at market this summer. But industry sources tell DigiTimes that the device hasn’t yet passed AT&T’s validation process and will be delayed or perhaps even abandoned. 
Reporting better-than-expected second-quarter earnings this morning, AT&T said it activated 2.4 million iPhone accounts–35 percent of them for new customers.
