AT&T is firmly planted as the number two wireless carrier in the United States and there's little reason to believe that will be changing anytime soon. Apple's relationship with AT&T to be the exclusive carrier for the iPhone has been hugely profitable for both companies as well, however there is a growing rift between Apple, iPhone users and the wireless giant. This rift could eventually lead to huge subscriber losses for AT&T if Apple and dissatisfied customers have their way.
News reports of Apple having high level talks with Verizon Wireless have been swirling around the web for weeks now. With AT&T's exclusivity for being the sole carrier of the iPhone ending in the next year, they are becoming concerned about their marketshare and have been trying to woo Apple into extending the exclusivity deal.
There's a good reason why; AT&T has lured large numbers of subscribers from every major carrier in the U.S. since the iPhone was launched in 2007. It's a compelling device that wins people over even if the coverage is spotty where they work or live. The iPhone has truly changed how people use a mobile device in their daily lives and has changed people's expectations of wireless carriers and the devices they offer.
The trouble for AT&T is that many of their new subscribers came over specifically for the iPhone despite their disdain for the carrier. Many users are openly hostile about AT&T's service and coverage and would love to jump ship if another carrier picked up the iPhone. The announcment of the new iPhone 3GS at this weeks developer conference showed that there's no love lost between Apple and AT&T as it was made clear that the long awaited features such as MMS and tethering were not supported by the carrier at this time. Apparently, the audience was not amused either.
The excitement about the new iPhone 3GS was further dashed as it was learned that AT&T was not offering a lower cost data plan that had been rumored and that current 3G users would have to pay double to obtain the anticipated new iPhone. Leaving millions of iPhone users in the lurch who want to upgrade but can't or won't pony up the $400 to $500 to get the 3GS seems unwise of AT&T and hopefully they will relent for early upgraders, however this seems unlikely. It further shows the growing dissatisfaction of the inflexible 2-year contact burden on users from wireless carriers.
Wireless carriers such as AT&T don't seem to fully understand that the world views the iPhone as a mobile computer, not a cellular phone. The fact that it makes phone calls is secondary to what it really is which is a mobile computer that intergrates into people's daily lives. Apple makes computers, they are not a cell phone manufacturer and have no desire to be. Wireless carriers view everything as a phone first and barely grasp the shift in mobile computing needs. The wireless carrier is a means to an end; nobody really cares about the name behind their phone or PDA carrying the voice or data. What we all need is the ability to choose our wireless device and then a carrier that has good coverage, speed and pricing. Eventually we may be able to take any device to a carrier of our choosing, but for now iPhone users will have to stay with AT&T.
AT&T Pricing
Here is one AT&T customer who is NOT happy. I was looking forward to trading up to the new iPhone 3GS, but not under those terms, I think . . . I sure want that phone! I'll be so glad when there is some alternatives to AT&T.
If indeed Verizon Wireless
If indeed Verizon Wireless does get the iPhone next year, I know for a fact many people will be happy to move back over. Apple seems eager to expand the iPhone user base beyond a single carrier in this country.
No Way I Would Want My iPhone on Verizon's Network!
Look at what VZW has done to the Blackberry Pearl - they stripped it of its native GPS capability so they could charge $10 a month extra for VZW navigator... VZW also charges and addtional $5 a month for visual voice mail. In Chicago, ATT service is equal if not better than VZWs, so I see no advantage VZW has over ATT.
You are absolutely right
You are absolutely right about VZW. I am sure any iPhone deal with them will have to have VZW concede any branding or modifications to the device if they want to play in Apple's arena. AT&T did it and still came out ahead. I'm guessing VZW is willing to consider the lack of control to get back the subscribers that defected to AT&T.
AT&T - what a joke
No doubt about it I love my iPhone. But, because of AT&T's crappy phone service I
reckon my device should just be called an "i". Living in Tucson, AZ I can't even use my phone in my living room, or at work, when my prior carrier Alltel had full service in both places. But I guess I should be happy because I have basically all of my minutes still available as carry over minutes! Whoopie.... What good are they when the phone service drops 95% of my calls. Thus about once ever 2 weeks I log in my complaint to both AT&T and Apple. Can you hear me now? I see all these ads in my area "more bars in more places". What a crock, what I'd like is full bars in MY area. I know..... That's a lot to ask. I despise AT&T. Come on Apple, help us out here and put the Phone back in my "i". This device should be available to all carriers to compete for my hard earned cash with their best deal possible. Free enterprise, what a concept.
Iphone 3G - 3G(S) upgrade
I talked to an AT&T representative who said that if you've owned the i-phone 3G less than 30 days you can upgrade with only paying a restocking fee of like 10-20 bucks. But that AT&T rep mentioned nothing about extra money for a voice plan.
Open to All PLEASE
I have had all the big carries (ATT, VZW, TMob, Sprint). I just returned to ATT ONLY BECAUSE OF IPHONE)after years of being absent from them since the acquisition of Cingular. This was only because my side business needed me to be in contact constantly. I dropped them at that time and went to VZW, umfortunately their system is antiquated and mostly available in N. America. Bad for my business when I go overseas. I moved to T-mobile, customer service was great, overseas coverage excellent but had shoty coverage in NM and many rural areas of U.S. with limited markets with 3G speed. My spouse, has Sprint service with her job and I have a VZW in my daytime job. Sprint works in the big markets, but when you leave those area...NO GOOD, VZW Works in the states and is superior but not so overseas. In my opinion and if I had to choose the lesser of the evils, T-mobile is the way of the way and they have a world presence with them being part of European giant Deutch Telecom. The best overall bet would be to do what RIM did, go to BED WITH ALL OF THEM and let us choose.
AT&T vs. Verizon
One of the main reasons I went to the Iphone and AT&T was I had been a Verizon customer for several years and couldn't wait to get out of my contract. In Colorado Springs the coverage was so bad that I had to (I'm not making this up) turn on the speaker phone, raise it 1 foot up and away from my mouth, and it would still cut out. AT&T has good coverage here in Colorado, and only occasionally will cut out. Sometimes it will flip over the the E setting, but rarely.
One of my gripes is that Apple has a policy of pricing things way too high though, then acting like they're doing us a favor by dropping the price, and then antiquating (by not offering upgrades) their equipment as a marketing ploy (both on Iphones and Mac computers).
ATT
This morning we just tried to buy 2 Iphones, but because we live in an area not serviced by ATT we couldn't get them.
I guess if you live in the Rockies, you're just shit out of luck, as they say.