AT&T building out network capacity to prevent exodus to Verizon's iPhone?
By Vlad Savov 
posted March 31st 2010 4:24AM
posted March 31st 2010 4:24AM
So this is what all those "yo' network's so slow" jokes were about. The Wall Street Journal has today penned a story framing AT&T's hefty recent investments in building out its network as a defensive move against a "huge exodus to Verizon" when its rival gets the iPhone. These preventative measures include working with Apple on streamlining the iPhone's network load, and infrastructure spending that is expected to be $2 billion more in 2010 than in 2009. The WSJ claimed yesterday that Apple was working on a CDMA version of its iPhone that could hit mass production as early as September. However, concluding that the iPhone on Verizon is a done deal seems something of a stretch. Sprint has shown a remarkable ability to attract cutting edge phones, and China Unicom's exclusivity agreement is about to hit its precarious first anniversary about the time this handset is set to roll out. Still, setting aside the analyst blather and extrapolation, the picture that emerges is of AT&T feverishly patching up its service offering in the face of a rapidly expiring exclusivity arrangement.
Woot!
THIS is why capitalism works, people.
@think before you react
I hope they make the verizon suck ass! (ie: a flip phone with no touch screen, and it runs some verizon made os)
The Verizon Suck A$$. Now THERE'S a name for a phone.
@Smart People Play Tuba Tell that to someone who lost his job due to those greedy managers. What really works is eco-social market economy.
@Smart People Play Tuba
Um, that's why it doesn't work, people. They had to be blackmailed in order to enact change. Way to go Capitalism.
You must be an optimist... delusional, but an optimist. Silver lining?
@Please forgive me: But that is how capitalism works. You expect company's, especially AT&T to willingly improve their service if their customers have no other choice but to go with them? That's pretty much what a monopoly is. Cornering the market then pushing customers to the edge of doing without.
Now that they will actually have competition again over their biggest seller, they have to actually LISTEN to people now.
Luke Wilson commercials not enough?
too little, too late.
@Smart People Play Tuba
God you people are SUCH HYPOCRITES. You Apple haters say the iPhone sucks and it's not a smartphone.
Yet on the other hand you're so DESPERATE for it to be on your network and for AT&T to lose its exclusivity.
Well guess what it's NOT going to happen. Because Jobs and AT&T know that part of the allure of the iPhone is that it's exclusive to one carrier in the US. The rest of the world doesn't matter.
For months you guys have been shooting your mouths offa bout the nexus one and the droid and the hero which have all failed fantastically since their releases. No android device to date has measured up to the iPhone in terms of sales, experience, and overall success.
That's THE TRUTH. AT&T and Apple know they've got a good thing going and they are making LOTS of money without Verizon.
Verizon spat on Apple and refused the 1st Gen iPhone. I highly doubt Apple will forget that.
Once again the Apple haters LOSE.
Again if you hate the iPhone SO MUCH why do you want AT&T to lose its' rights to it? Shouldn't you be satisfied with your droids, nexus ones, incredibles, heroes, and the Evo 4G?
But of course even the Evo 4G will suffer the same fate as the others (despite the awesome hardware) when the iPhone HD drops this June.
@TheLondonExchange
TLDR
@mschmidler
Either the boss is greedy, or the person is not necessary for the company's business goals.
- The person is not needed: why should the company keep paying for you if you're not useful to them? I.e., why would AT&T continue to pay for a full staff of TDMA/Analog technicians once they turned the analog service off? They could use that money for expanding 3G.
- The boss is greedy: You want to work for a greedy boss? If you don't agree with the boss (or, at least corporate management), you don't agree with the company's business goals. See above. If you agree with corporate goals, but not your immediate boss, then 1) get him out of the way, or 2) leave... you evidently don't like your job and would be better off elsewhere.
Not to sound insensitive... but do you really think that the best solution is to keep paying people that aren't meeting business goals?
@TheLondonExchange
dude i don't think it's the same people. people who don't like the iPhone aren't going to want it regardless of the network. and you are honestly crazy if you think Apple cares about you or AT&T. they care about making money.....lot of it, and they are limited in how much they can make being stuck on one carrier. Verizon has the largest network and reaches places that AT&T doesn't, so that means people can't get the iPhone just because where they live, think of how many more customers there will be if it's on a network that reaches more people.
and for the record, i don't have nor do i want an iPhone. i use Verizon but i would never pledge loyalty to those bastards with their insane prices (but it works where i live). perfectly happy with my TP2.
@lyian But they will only have to listen a bit more. So now the iPhone monopoly is going to be replaced with an iPhone oligopoly. Since it would almost certainly be reasonable to believe that AT&T and Verizon would match price/service movements penny to penny with all things iPhone. This is also not considering the not so invisible hand of Job's influence on the carriers as well.
@TheLondonExchange Why do you insist on being such a troll? I mean, its exhausting. It has no point. It also destroys quality conversations. THIS is what a quality conversation on here SHOULD look like.
I know AT&T has the faster network but Verizon has much better reach. I am very happy for the consumer here because this provides more people with more choice. I am excited to see the iPhone move onto other carriers. With that being said I am Droid owner and I love my phone but I'm happy to see the iPhone coming to Verizon.
See, I don't even want an iPhone and yet I know how to post a constructive post without being a fanboy or a troll. Good luck with your future endeavors.
@Eli Haj Probably not going to lower prices. Maybe more minutes, but it takes dire straits to make a telco cut their ARPU.
@TheLondonExchange FYI, the DROID has sold well over a million units. I don't know about your planet, but here on earth, that's not a flop.
Disclaimer: I am an iPhone owner on AT&T.
@think before you react
Am I the only one in Manhattan who actually HAS "noticed" (could very well just be Placebo effect) better service from AT&T?
These significant upgrades, in addition to an exodus of current owners to Verizon, might just be enough to get me to stay with AT&T, ESPECIALLY if VZW's plan pricing is even more expensive than AT&T's.
As much as we all ripped on AT&T for their higher-ups saying that VZW's network would crash under an influx of iPhones, it has to be at least somewhat true. I think it goes beyond wishful thinking to believe that ANY carrier can launch a device as high-profile as the iPhone without a number of serious network hiccups.
Bottom line is that all carriers suck. AT&T's service has been absolutely terrible in NYC for the last 3 years, and I feel like a complete schmuck for even suggesting that it might actually be on the road to improvement. Blah.
@TheLondonExchange
You're wrong
http://www.engadget.com/2010/03/17/google-issues-statement-on-nexus-one-sales-touts-android-market/
@Vlad Savov
You misspelt CDMA in the sentence, "The WSJ claimed yesterday..."
@Smart People Play Tuba Good point... so Apple is anti-capitalism.
@think before you react - A CDMA iPHONE IS STUPID!!! The essence of the iPhone and what give it its iPhone-e-ness is its ability to perform simulatenous voice and data tasks no to mention the thousands of Apps that rely on this core functionality.
If I was AT&T not only would I have ads gloating at first dibs on new iPhones but I WOULD BASH VERIZON'S GIMPED DATA OR VOICE ONLY IPHONE VERSION RELENTLESSLY!!! CDMA SUX AZZ. Sayin...
@uansari1
If by anti-capitalism, you mean that Apple is pro-monopoly, then yes, they are . . . as are most companies.
@Smart People Play Tuba
In what way is Apple pro monopoly? It's in their best interests to have the iPhone on more networks, not less. The technology they use for all their devices and computers is all based on open standards, and since they sell hardware, their interest is in making sure the majority of stuff works on their hardware. That is the opposite of a monopoly.
@Jack You completely misunderstood what he meant. He is saying that Apple wants everyone to own Apple products and nothing else. Which is basically the goal of every company. Why would you want your customers buying products from competitors? Sheesh, you need to relax a little. :)
@Smart People Play Tuba
Well, not really. True free markets in wireless would not involve carrier locked devices.
@KAL326 Somehow I don't see AT&T and verizon working together like that. They're fierce competitors, were recently in court against each other, and will try to pry what they can from the other.
@TheLondonExchange I have had AT&T for a long time. No troubles. An iPhone is smarter than a regular smartphone. U got the right idea. Keep being awesome!
@Frankenstein Black
"The essence of the iPhone and what give it its iPhone-e-ness is its ability to perform simulatenous voice and data tasks"
I highly disagree. Most people (even iPhone owners) didn't use this or even know about it until AT&T started touting it as an advantage over Verizon. (Then Apple trolls were all up in arms about how super fantastical and magical it is.) Truth is, the iPhone is still an iPhone without it. It will still have apps and that flashy iPhone interface, and will be used much the same regardless.
Honestly, the talk and data at the same time isn't necessary except for a minority of users. Even the commercials are ridiculous. If the notion to watch a movie hits me, I'll look up what's showing before I call my friend, not during the call. If I want an address to where I'm going, I'll say "Dude, text me the address." If my friend is on a game show... scratch that, that's a rare issue. (Besides, as a life-line tell you before hand to expect it, so you could be otherwise prepeared.)
So in short, I totally disagree. Simultaneous voice and data does not an iPhone make, it's just a pathetic attempt by AT&T to spin a mostly useless feature as a major selling point.
I know I won't buy an iPhone when it comes to Verizon. I'm just not personally interested in what gives the iPhone it's 'iPhone-ness.' (Here's a hint, it's similar to the 'everybody wants an iPod because it's the cool thing to do because everybody else is doing it' idea) I'll stick with my Sony mp3 player, and for my next phone, I'm thinking android.
@Smart People Play Tuba Capitalism stifles competition and limits consumer choices unless regulated.
@TheOneAndOnlyJH
Do you work for verizon? Don't speak for everyone... you haven't used it I guess and so you don't know how handy it comes in.
Nowadays, on engadget, then trend is to add "I have an iPhone/ATT whatever for n years but droid rulezzzzzzzzz blah blah... " at the end of the comments to make you look less of a fanboy/troll. But it's a pathetic attempt and educated, non-biased people on here can always tell a pretender from the one who has actually had some hands-on experience.
And personally speaking, I've used both simultaneously from day 1 mostly to look up contact numbers and addresses and emailing them while talking to someone. Admit it or not, it may not be a "necessity". Heck no gadget can be a "basic necessity"... but it does come in handy. As far as your movie argument... what if the other person said... let's watch xyz movie instead.. do you know where it's showing and when? What do you do? Hang up and call back? Of course you can do that... but you'd love to stay on call, keep talking about other stuff, while looking up the other details on your phone.
Overall your argument that you don't need/love/crave/want simultaneous voice and data is as lame as of those iPhone fanboys who claim they don't need/want/crave/love multitasking!
Be a wise geek and engadget-worthy, please!
@Smart People Play Tuba
Try explaining your extraordinary slant in capitalism to the people of South American in the 70's and 80's.
Capitalism works with regulation. It has to be a hybrid system. Point in case: The financial meltdown that effected the world over last few years.
Its easy to point out the pros of a mature device/services market. Just don't forget about the cons when it comes to how it effects people.
@TheOneAndOnlyJH
AGREED! No one wants to wait on the phone while tour looking up addresses or whatever & besides they'd rather you text them the info so they don't have to write it down.
Not to mention you can text while on a call on CDMA- at least on Sprint. Plus, with 4G you'll be able to do both since 3G will handle all voice & 4G is data only for now.
Given the high % of dropped calls (in NYC & SF esp.) there's already a good chance that you'll end up having to call them back anyway. I know when ever I call any of my friends that have AT&T it's like phone russian roulette on if I can reach them of it goes straight to voicemail.
AT&T sat on these issues for far too long & have no one to blame but themselves. If people flee them and goto Verizon & their iphone, I don't feel bad & it will just serve further proof that AT&T was asleep behind the wheel in fixing network issues. They've been making hand over fist in money & should have been pouring that into their network.
I don't have a dog in this race, but Verizon & Apple have atleast lived up to providing a product / service that's reliable.
@TheOneAndOnlyJH
actually it was Apple who first advertised the simultaneous voice+data, at&t just had the stupid luke wilson ads.
any way i rarely use the feature so i can live without it and would much rather have a better voice network over simultaneous voice+data.
@lyian
I know how capitalism works, my objection was that this situation was used to indicate this is why it works.
Yes, I disagree with you and all of the other people who down ranked me. I don't ever want to live in a world where everyone is doing the least bit possible, the minimal amount of effort, needs to be prodded to advance. That is capitalism. There is no self respect, improvement for the benefit, etc.
There is a reason NASA and all of the other research and development facilities are publicly funded and not a private corporation... and it's not because they're working with top secret information. It's because the capitalist system does not advance society in the same way as a concerted effort to do so, does. They didn't have an open invitation to companies to secretly develop the atom bomb... they did it with our money.
Whatever... I can see the argument against it... look at the government run offices where you need to get service - passport, post office, etc. I understand where the criticism comes from.
On topic, I left ATT because the coverage was starting to bug me. I hope to never go back to them if they need to be prodded to improve the service. They should be improving their service because I'm fucking paying them for it.
@Smart People Play Tuba The real question will be, once Apple (steve jobs) has finally made up its mind and open the iPhone 4G to Verizon: http://bit.ly/iphone-4g-closest-concepts
Can AT&T do anything, but just to wait?
@Deleteno5 Maybe you should read up on what an oligopoly is. They don't work together per-say, they just match each others actions in the market because their small number of vendors and commodity nature of their product. That is not to say they will line up all of their plans to match each other for all phones, but pricing on plans and devices in all things iPhone will most likely be in perfect lockstep.
@TheLondonExchange Because we hate ATT more than Apple and big red will END ATT when it gets the iPhone.
Thankyou
That is all
@crawdad689 I've had both verizon and At&t and as far as I know verizon's service sux ballz in michigan I've never had a full signal once, I even missed a ton of calls in my own house wtf... AT&T on the other hand always has full network signal and never dropped a call, although for some reason it had a lot of blackouts (which I later found out was a damn sorry excuse for an iphone 3g they sold me, I upgraded to a 3gs and it no longer happened tho and despite that I no longer use this phone as more than an mp3 player), I'll admit they have a ton of problems they can work on but I'd had a better experience with them than verizon.
@KULawHawk
Rock Chalk!!!
That is all.
@Smart People Play Tuba
Is the recession capitalism at work too? Or was there no recession?
Problem, AT&T?
@Aguilera Yeah, for them. But great for us (AT&T subscribers). This is why competition is a great thing.!! Light a fire under their ass, they'll get up and do something.
At least they are doing something to make the network better. Hopefully I'll get good coverage and LTE speeds on the HD3
.....assuming it gets an LTE radio
@abedinthehouse LTE supports CDMA and GSM at the SAME time ;)
@angelwolf but only in an area where LTE reception is ok. In low coverage area's you will still have to fall back on either GSM or CDMA or not?
Wasn't AT&T planning to make their network more robust anyway? Sorry, this is a non-story story...
by the way, ive never understood why they say "building a CDMA version...". Isn't the only difference the radio reciever? why is it always made to sound as if they have to build a whole new phone?
@WP7S Why?
@WP7S -- "it would significant design effort and would require extensive modifications"
Right... but EVERY other cell phone manufacturer is making both CDMA and GSM phones. RIM made *identical* Blackberries for all carriers for years. It can't be that hard.
Hell... Palm is practically bankrupt... and even they can make both CDMA and GSM Pres and Pixies...
@WP7S what is there to redesign except the radio? which "extensive modifications" are you referring to other than the radio?
Also, "stfu"? really? I asked a very legitimate question and you didnt even answer it.