AT&T Now a Big Liability for the iPhone

AT&T has become a giant liability for the iPhone. While in other markets around the globe (e.g., the UK) multiple carriers offer the handset, in the US it’s still only AT&T. And despite the speculation and hope for a Verizon iPhone it’s quite likely that AT&T will remain the exclusive US carrier for at least the duration of 2010. I hope I’m proven wrong.

AT&T’s network and reputation have taken a big hit from iPhone users struggling to “get on” and who experience dropped calls — although it was just rated “fastest” by PC Magazine:

But PC Magazine also found AT&T’s network to be the “least consistent” of those it tested. Interestingly, AT&T’s 3G network was as fast as Sprint’s 4G network.

Speaking of Sprint, I remain a Sprint customer despite my desire for the iPhone because I won’t switch to AT&T. I got the EVO at the Google I/O event and intend to use it as my personal phone.

I’m an AT&T DSL customer at home and what a disaster that has been: inconsistent connection, slow speeds and poor customer service. (We all now know about the recent, ham-handed “cease & desist” episode re AT&T wireless.)

When my DSL went out earlier this week I switched to the EVO hotspot and was able to restore the various devices in our house for the several hours that DSL was down. That’s a great feature of the device.

As much as I like the EVO I would replace it with the forthcoming iPhone in a heartbeat if it didn’t mean I had to switch carriers to AT&T.

AT&T has rewarded its iPhone data users, as you know, with a complex, new usage-based rate plan. While financial analysts and the “industry” applauded the move to tiered pricing, it’s actually the opposite of what consumers want. Verizon may follow but Sprint and T-Mobile are holding the line for now.

So beyond the inconsistent service, the complex and opaque new pricing scheme will further “punish” iPhone users.

Cumulatively all these factors make AT&T a growing liability for the iPhone and limit its further penetration in the smartphone market. Apple, at least in its public statements, seems blind to this.

About these ads

4 Responses to “AT&T Now a Big Liability for the iPhone”

  1. AT&T Now a Big Liability for the iPhone « Screenwerk « iPhone 3GS – India Says:

    [...] Read this article: AT&T Now a Big Liability for the iPhone « Screenwerk [...]

  2. David Mihm Says:

    AT&T is the sole reason I do not own an iPhone. Apple is so smart about seemingly everything else they do…wonder why they appear to be so obtuse about this?

  3. John Appleseed Says:

    Just go to HongKong or NewZealand and buy a legally unlocked iPhone and pop in the GSM SIM of ur choice. Oh, I forgot, u don’t wanna pay full price. Shocking!

  4. Greg Sterling Says:


    Apple chose exclusivity as their go to market strategy in multiple markets. AT&T gave them more freedom and control than Verizon was willing to (if the rumors are correct). The duration of the exclusivity is the question of judgment here.

Comments are closed.


Get every new post delivered to your Inbox.

Join 120 other followers

%d bloggers like this: