AT&T Wireless CEO implies iPhone exclusivity in U.S. to end
Matt Hamblin at Computerworld writes:
AT&T Mobility CEO Ralph de la Vega strongly implied today that the carrier's exclusive deal to sell the iPhone in the U.S. is ending, although he gave no details in a conference call with analysts..."We have a legacy of having a great portfolio...that will continue after the iPhone is no longer exclusive to us," de la Vega said. "We think we will continue after the iPhone...to drive [results]...."
AT&T announced earlier today that iPhones were 75% of their new Smartphone activations and brought 40% of their customers from other carriers so losing exclusivity might not be in their best interests. Interestingly, de la Vega noted the advantages of AT&T's 3G technology (talking and using data at the same time) vs. Verizon/Sprint's services which lose data when a voice call is initiated.
He also talked up Android devices and eBook readers saying:
"Even if we lose exclusivity [of the iPhone], we will be the only carrier with HSPA 7.2 [a network specification being deployed at AT&T] and [new devices] will work on our network faster," de la Vega said. "I feel as strongly as ever [about] the capability of devices in our lineup and [am] super-excited about the deals with e-readers and personal navigation devices. "
De la Vega also said AT&T is now working with device manufacturers to build Android phones that will "work best" on the AT&T network. "They are terrific devices and much better on AT&T than on anybody else's network."
With Verizon's latest Droid/iPhone attack ads, and Sprint ahead in 4G coverage, we're thinking a new CDMA front-runner could be emerging. Would anybody else out there be interested in a WiMAX iPhone? Also, Tmobile would be an easy choice as they use the same GSM/EDGE network as AT&T, albeit with differenct 3G frequencies.
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Comments (27)
Eh? Verizon loses data services when on a voice call? This can't be right. So I can't get or send email when on a phone call?
I've never had that problem
Now that I think about it, I've never had that problem with SMS while on a call. Now I have to test emails on a call to see.
It's a limitation of EVDO/CDMA. EDGE has the same problem, but WCDMA/3GSM doesn't have that problem. LTE won't either, since it's a totally IP driven network. Phone calls will be data in the future. My bet is, when 4G services roll out, we'll be billed by the GB with MB overages rather than by the minute with minute overages. Another disadvantage of VZW AT&T didn't mention: call conferencing is easy with any AT&T phone, whereas Verizon's implementation is similar to the classic landline methodology. Additionally, you can't just add calls or merge calls -- you must initiate the 3 way calling. But, I digress. Technology: 3GSM takes the cake over CDMA. Network: Verizon takes the cake over AT&T. I'd rather go with Verizon, but I'd be the first to admit hands down that the technology AT&T implements is definitely more rounded. Of course, they didn't exactly develop it either. You can thank the GSM consortium (Europe) for that. It's a moot point. When LTE replaces all existing networks by 2013, 2014, there won't be any differences between carriers except band and network.
That's great. I'm all about ending exclusivity. But I have a ton of questions: Who would it go to? AT&T *and* Verizon? Would Apple be happy making CDMA and GSM phones? (Which would be funny and ironic after Verizon's Droid "iDon't" ads).
Or would it go exclusively to Verizon - thus jumping from one exclusive carrier to another?
I can't imagine an iPhone would go to T-Mobile since their 4G plans are so far behind. I don't know much about Sprint, though.
Pondering the possibilities...
They won't go exclusively with someone else. AT&T will still offer the iphone. But in the near future (hopefully) the iphone will also be available on another carrier in the U.S.
Maybe verizon....but Sprint might be another interesting choice considering the new 4G network.
i was with sprint for a while before i got the iphone. i love the phone, but i hate at&t and cdma. i was practically never in a dead spot with sprint, but with at&t they're everywhere. also, i've noticed that gsm penetrates buildings better than cdma.
although i dont see apple manufacturing a different set of iphones to accompany gsm, i would definitely make the jump back to sprint if they ever got the iphone.
how about a dual band iphone? sprint had dual phones these when they merged with nextel right?
That's a total oxymoron. AT&T uses WCDMA(UMTS) and EDGE. Sprint/VZW use CDMA/1xRTT/EVDO. I totally don't understand what you're trying to say here. BTW, FREQUENCY, not technology, has to do with why you get better reception indoors or outdoors. Lower frequencies (850) work better than higher frequencies (1800/1900) for indoor communication. They also use up quite a bit more power. Previously, the 3G networks were being deployed exclusively 1800/1900MHz, but are now starting to be deployed in 850MHz to improve cities like NYC or SF where building space kills signal. 850MHz has been typically reserved for rural areas, where it can travel farther distances.
my experience with sprint's gsm is way better than at&t's cdma. if iphone went to sprint, i'd make the jump back. it seems like gsm penetrates buildings better than cdma.
i dont see apple making a different set of iphones to accompany gsm, but maybe a dual banded iphone? sprint had these types of phones after they merged with nextel right?
What are you talking about? AT&T is GSM and Spring is CDMA. Verizon is CDMA. Tmobile is GSM.
This was either a mistake or your confused as to what type of network your iPhone works on.
my experience with sprint's gsm is way better than at&t's cdma. if iphone went to sprint, i'd make the jump back. it seems like gsm penetrates buildings better than cdma.
i dont see apple making a different set of iphones to accompany gsm, but maybe a dual banded iphone? sprint had these types of phones after they merged with nextel right?
You are confused.
Sprint is CDMA and AT&T is GSM.
Having used both, it does seem that CDMA penetrates buildings better.
That being said, the only cell provider i dislike more that AT&T is verizon.
It's the radio frequency that determines wall penetration. The lower the frequency, the better the wall penetration. So, for instance, a 800 MHz channel will penetrate better than a 1900 MHz channel.
Basic physics. The protocol that runs on top of all of it is immaterial.
Both so-called GSM and CDMA run at either frequency in the USA.
you've got it backward
sprint=CDMA
att=GSM
I have different experiences by far. I was on Sprint for ~8 years. I had a terrible experience. I couldn't wait to get off. Constantly dropped calls, no service and tether was like non existent. The coverage kept getting worse over the years. AT&T has been excellent. Only a couple dropped calls and coverage almost everywhere I go.
Competition is good. I would like to see the number of service companies reduced to 2 or 3 and then the cost of use would be more effective for the service supplier. They could get better returns and we would get better service. Although cost is important to me, coverage and a more useful service is more desirable.
I personally hope Sprint sinks. They treated my like trash and constantly reduced their service and increased cost during my 8 years.
and people wonder if AT&T pays people to talk positively on forums. Here's your proof.
PS - signed, a Verizon shill.
Why on Earth would you stay with a "supposedly" crappy telecom for 8 YEARS!?!
First, no one paid me. I don't love AT&T, however, compared to Sprint, AT&T wins hands down. I am an engineer and I don't like junk. The only reason I stayed on Sprint was I had a lot of commitments with them, far more than just a phone. I also owned two business and worked full time as an engineer designing factory automation at a major aircraft company. Time was a premium. Also, there was a time that I could not change because I would lose my phone number and I had thousands of contacts using that number. Eventually that changed and allowed me to consider other providers. Also, I used Sprint for mail. Initially is worked fine, but eventually it was spammed to death and they eliminated the service rather than fix it. It took a lot of time and effort to make this change. It left a very bad taste in my mouth.
I have and love Sprint. I've had AT&T and they are absolutely terrible (in my opinion). They are the single reason I do not have an iPhone. If iPhone came to Sprint, I would buy it the day it is released. Please come to Sprint, Apple! I need a 4G iPhone on (superior) CDMA technology!!
A few things:
CDMA is not superior to WCDMA (3GSM). On the contrary. Your misconception of this technology is because the two U.S. Carriers that use GSM stink, frankly. As AT&T gets around to replacing it's 2G network, eventually this will get better as more towers move to 850MHz band.
Sprint also isn't going with CDMA technology for 4G services. They're adopting WiMAX. It's Microwave technology, and it's really expensive. No one is picking up the evolutionary path of CDMA technology, called UMB, which Qualcomm finally dumped last year. The rest of the world, however, is going with LTE. Economies of scale dictate that eventually, LTE will probably be much cheaper to operate. Good luck to Sprint and all, but I think they're only screwing themselves in the long run, seeming how they have 4G (and crappy 4G at that) available in, like, two places. Meanwhile, VZ is rolling out LTE 1st Quarter 2010, and plans to have a complete network overlay by 2013, which should by far be the largest LTE network by that time. The iPhone may be irrelevant by that point, or it might still be -- but it's several years away. I can virtually assure you that a 4G iPhone would make a lot more sense in 2011, 2012. Network infrastructure takes a LONG time to roll out, and that simply can't be the compelling reason to upgrade your phone every year. If iPhone is still a major player (as I expect it to be), it would make sense that at LEAST by 2011/2012, there would be an iPhone on VZ/TMO/ATT, however I just can't see it ever coming to Sprint. Apple isn't going to make a phone for a single carrier that's bleeding customers, and chose a technology no one wants. Personally, I think by then, Sprint will probably be purchased by another carrier for their existing wireless spectrum. (A VZ purchase of Sprint would make most sense, though TMO might make a lot of sense, too.)
Could it be possible that new Verizon Droid phone be why Apple is opening to new networks?
http://www.newsy.com/videos/big_players_join_smartphone_war
I have an inkling the next iPhone release will support some additional HSDPA frequencies. As of now, it doesn't support 900Mhz 3G, which is being rolled out by Optus and Vodafone in Australia, who together account for something like 85-90% of iPhone sales. Telstra has an 850 network that supports iPhone just fine, but they've made it pretty clear in their pricing and advertising that they have no interest in iPhone whatsoever and only sell it to not appear totally dated. That's reflected in their market share (Telstra's 850 network covers 99% of the population, Voda and Optus' existing 2100 network only covers about 80%, with the new 3G 900 bringing 3G to rural areas that currently only get 2G unless they use Telstra - effectively this gives Telstra a monopoly on 3G in many parts of Australia, yet even with that leg-up nobody uses them for iPhone).
Wouldn't be too unlikely for it to also support T's frequency in the US.
A CDMA-EVDO iPhone might be plausible, but I forsee T-Mobile getting it ahead of Verizon.
Alas -- the first intelligent posting. ;-) I agree -- more bands seems likely. I suspect 900MHz support and 1700MHz support both being offered. 1700MHz for T-MO in the US. Infineon offers a chip that supports every existing 3G frequency and LTE, too. They also happen to be the maker of the existing baseband, so it would seem a pretty good fit. I suspect TMO US availability next summer, VZ availability 2011 on LTE.
Let's focus on the future and what makes the most sense...
Someone commented about Sprint being far ahead in the 4G arena, with their WiMax. This is true. Unfortunately, it's not taken off as they have hoped. I'll give them credit for their continued effort, but WiMax will start and stop with Sprint.
Verizon on the other hand is currently testing out their own 4G network and further along than most of us realize. They are going to market with the Lte technology, which is also what AT&T and the rest of the world plan to follow as the standard 4G technology. So it would make sense that you'll see the iPhone sold and partnered with those companies going the Lte direction. Verizon won't get squat, where the iPhone is concerned, until they deliver on Lte.
AT&T. Well, I'll remind you of a comment they made not more than six months ago in saying that 4G isn't something they'll need to worry about until 2012. I also think they were quoted as saying they have plenty of time before that's a big deal. I think they are sadly mistake in taking that stance. And again, I'll remind you that they've already committed to going with Lte.
If I had to lay down my bets, I'd say Verizon is the clear favorite for the first (4G) installment of the iPhone. T-Mobile may be an immediate and short-term beneficiary of an open market (3G) iPhone, but like AT&T, dropped calls and coverage play a big part in their struggles.
Let's focus on the future and what makes the most sense...
Someone commented about Sprint being far ahead in the 4G arena, with their WiMax. This is true. Unfortunately, it's not taken off as they have hoped. I'll give them credit for their continued effort, but WiMax will start and stop with Sprint.
Verizon on the other hand is currently testing out their own 4G network and further along than most of us realize. They are going to market with the Lte technology, which is also what AT&T and the rest of the world plan to follow as the standard 4G technology. So it would make sense that you'll see the iPhone sold and partnered with those companies going the Lte direction. Verizon won't get squat, where the iPhone is concerned, until they deliver on Lte.
AT&T. Well, I'll remind you of a comment they made not more than six months ago in saying that 4G isn't something they'll need to worry about until 2012. I also think they were quoted as saying they have plenty of time before that's a big deal. I think they are sadly mistake in taking that stance. And again, I'll remind you that they've already committed to going with Lte.
If I had to lay down my bets, I'd say Verizon is the clear favorite for the first (4G) installment of the iPhone. T-Mobile may be an immediate and short-term beneficiary of an open market (3G) iPhone, but like AT&T, dropped calls and coverage play a big part in their struggles.
Sorry I don't agree at all. Why on earth would Apple have had the postings for jobs for people that have experience with CDMA tech? Also, I don't see an iPhone going to T-Mobile due to it's extremely limited and juvenile network. VZW is by far the best bet for getting an iPhone in the not-too-distant-future. There's no reason whatsoever that Apple can't release a dual CDMA/LTE iPhone. There are already multiple radios in an existing iPhone, they'll just have to switch them out for different ones. VZWs the only network that's actively building out their 4G network, and who already has a 3G network that more than easily competes with ATT in real-world speed, and smokes ATT in actual geographical area covered. I firmly believe that by next Christmas, I'll be opening a new VZW iPhone.