Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

AT&T: The iPhone's anchor

By | June 8, 2009, 2:00pm PDT

Summary: Backstage at the keynote event that kicked off Apple’s Worldwide Developer’s Conference today, there were likely some smiles from Apple execs as the audience chuckled at the little jabs against Microsoft - you know, comments that poked fun at Windows Vista, for example, and others that pointed out that Windows 7 is just a new [...]

Backstage at the keynote event that kicked off Apple’s Worldwide Developer’s Conference today, there were likely some smiles from Apple execs as the audience chuckled at the little jabs against Microsoft - you know, comments that poked fun at Windows Vista, for example, and others that pointed out that Windows 7 is just a new face on the same crappy technology.

But I’d be willing to bet that Apple execs watching from afar were not very happy to hear roars - yes, roars - of laughter coming from the auditorium every time AT&T was mentioned and even when it should have been mentioned, but wasn’t.

In all honesty, it was awkwardly embarrassing for the company, which was trying to focus on the iPhone 3G S (Techmeme, Apple statement). I know I was embarrassed for them - especially as the folks who were presenting did their best to keep moving on the script while the laughter was clearly keeping people from paying attention.

Apple can put executives and partners on stage to demonstrate all of the cool things that you can do with an iPhone. And you can’t take that away from them the fact that they’ve made a device that is changing the world. But there’s nothing they can do about the fact that the iPhone service over the AT&T network is considered to be the worst in the nation.

Previous coverage: AT&T’s 3G upgrade: It’s about time but is it too late?

Seriously, I hope that Tim Cook and team, as well as Steve Jobs, picked up on the fact that the Apple faithful aren’t laughing with them. They’re laughing at them for sticking by that ridiculous exclusive AT&T partnership. Here’s a recap of a few of those moments:

  • MMS: iPhone users have been begging for the ability to send and receive picture and video messages the same way they receive text messages. And now, here it is. But MMS requires carrier support and Apple is proud to say that 29 carrier partners in 76 countries - whose corporate logos were displayed on the big screen - are ready to go. Then, in almost a bit of a whisper and certainly more of an after-thought, it was mentioned that AT&T would support MMS in the U.S. later this summer. Immediately, the crowd erupted in laughter.
  • Tethering: The ability to use a phone’s Internet to power the browser on a computer - either via USB or Bluetooth - is a huge selling point, especially for business users who rely on air cards from their wireless companies to power the browser on a computer. Apple played it straight, noting that carrier support was required and that 22 carrier partners were ready to deploy. Those logos appeared on the screen again but this time there was no after-thought mention of AT&T. (Does that mean tethering support isn’t coming at all?) Of course, that didn’t stop another eruption of laughter.
  • iPhone 3G S: The “S” in the name of Apple’s newest iPhones is supposed to stand for “Speed” but if it’s dependent at all on the AT&T network to showcase what it can really do, the “S” may end up standing for “slow” instead.
  • iTunes downloads: Another announcement spoke of the ability to download movies and TV shows from the iTunes Store on the iPhone. The example: you’re waiting to board a flight and want to download a movie to watch on the plane. You know where this is going, right? Exactly, you’d better hope that you’re doing that download over a WiFi connection in the terminal because I can’t even begin to imagine what the experience would be like if you were trying to download a movie over the AT&T connection.

And so I say - once again - that AT&T is holding Apple back when it comes to massive adoption in the United States. There are people - myself included - who would buy an iPhone today if it were available on another carrier. And now that the standard device is priced as low as $99, it’s almost a no-brainer of a purchase - but I still wouldn’t do it.

I realize that Apple probably had more bargaining power and was able to maintain control over the direction the device would take when it decided to move forward on an exclusive deal with AT&T. Today, that exclusive deal is the anchor that’s keeping the Apple and the iPhone from showing its true potential at redefining the mobile phone, smartphone and even handheld computer spaces.

Also see: Gallery: Live from Apple’s WWDC

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Sam has been a technology and business blogger for more than 18 years.

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Sam Diaz

Sam Diaz has nothing to disclose.

Biography

Sam Diaz

Sam has been a technology and business blogger, reporter and editor at ZDNet, the Washington Post, San Jose Mercury News and Fresno Bee for more than 18 years. He's a member of the National Association of Hispanic Journalists and a graduate of California State University, Fresno.

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RE: AT&T: The iPhone's anchor
Juliety 25th Oct
The iPhone's a home of google update a site compare with linux a contact site from another big company a website which upgrade always a home page is the best anchor
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AT&T: The iPhone's anchor
Loverock Davidson 8th Jun 2009
Wait a second, did I read that right when you said AT&T does not support MMS? So no one on AT&T or with an iPhone can snap pictures and send it to others? I can't believe this is possible, this technology has been around for ages. That is one more reason for me not to join AT&T.
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Not Quite. But Just As Ridiculous.
Whyaylooh 8th Jun 2009
Actually, I've been able to use MMS on AT&T for years. But, of course, I'm not using an iPhone. So, it's not a limitation with AT&T's network and technology itself.

The limitation seems to be one that AT&T has imposed on iPhone accounts.
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That is just....
Loverock Davidson 8th Jun 2009
That is just dumb. No wonder the people were booing at WWDC.
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Dumb or Dumber
Wolvergrunt 8th Jun 2009
Is this not a case of Apple agreeing to lame contract with AT&T and now throwing them under the bus because they don't like it anymore? The services mentioned in the blog are available to me, through AT&T, on my WinMo phone now and have been for some time. Only the iPhone goes without.

This is just another example of Apple stabbing a partner in the back and screwing their worshipful customers who are clueless enough to giggle about it.
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Maybe, maybe not...
Dave_Friedel 9th Jun 2009
Apple could be saying "hey, we made it big let's ditch our exclusive deal"...

Or...

Apple could be saying "hey we made an exclusive deal based on promises of a better level of service than we actually got in the long run".

Do you think Apple knew there would be 300 page bills being sent in the first months after launch? A lot of details come to light after a new innovation goes mainstream--no matter what the technology is.

If AT&T hasn't kept up with some major closed door promises and agreements on levels of service, Apple would be right to drop the exclusivity at some point. That could also motivate AT&T to improve its network faster than it had planned too. The good news is that consumers vote with their feet.

The bad news is a terrible economy wreaks havoc on nationwide companies, although you usually only see it as lackluster performance when they're that big.
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Just plain stupid
jkereszturi@... 9th Jun 2009
Apparently this falls squarely on AT&T as other carriers (outside US) are
supporting both MMS and tethering with the same phone/software.

I've got to agree, though, that Apple shares some blame as they should
have brought more pressure to bear on AT&T or dump them as their
exclusive carrier in US. Bottom line is that as an Apple/AT&T/iPhone
customer, I'll have to continue to wait to get these services commonly
available with other phones/carriers; or go elsewhere if it pisses me off
enough.
0 Votes
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Just because AT&T is set up to handle one method of using MMS doesn't mean they'll be able to instantly adapt their network if Apple suddenly tells them "Hey, we've decided to use a MMS setup that will require you to make these changes to your network, hop to it!"
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RE: AT&T: The iPhone's anchor
edward polling Updated - 4th Jul
Backstage at the keynote event that kicked off Apples Worldwide Developers Conference today, there were likely some smiles from Apple execs as the audience chuckled at the little education news and jabs against ipad bag blog sutudeg pclos hwdb Microsoft k l
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The iPhone's a home of google update a site compare with linux a contact site from another big company a website which upgrade always a home page is the best anchor
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Ha ha ha!
Bozzer 8th Jun 2009
You have to see the funny side. I would send you a picture of me laughing, but unfortunately it seems you are unable to receive them. Oh dear. ha ha ha!
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Funny?
His_Shadow 9th Jun 2009
It's called email. I have never used MMS, don't miss it, and no one I regularly send files to (Blackberry and iPhone users) give a damn about MMS.

Adding features will be better as always, but MMS is a solution to a problem that smartphones eliminate. Jesus, Telus CHARGES you to get MMS messages off their service.

Getting a message that gives you a link you have to follow to get the file vs get an email and have the file.

God yes, MMS is so necessary!
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you must have a small group friends...
SaipanMan95 9th Jun 2009
After the birth of the last daughter, I sent out pictures to lots of people.... some who had an iPhone were initially out of luck and then I had to start over and send it via email... It was more a matter of convenience for me...
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It's just personal preference
trent1 9th Jun 2009
I don't use MMS. I get charged extra for it. So I don't miss it on my iPhone.

I really like the fact that I can send that same pic I just took via email which my friends with capable phones and my friends without capable phones - will all be able to receive.
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RE: AT&T: The iPhone's anchor
gaberdiye03 Updated - 21st Jun
@Bozzer Is this not a case of Apple agreeing to lame contract with AT&T and now throwing them under the bus pembe maske energy balance oyna oyunu moliva orjin krem tutune son nanomatik complex 41 new fx15because they don't like it anymore? The services mentioned in the blog are available to me, through AT&T, on my WinMo phone now and have been for some time. Only the iPhone goes without.

This is just another example of Apple stabbing a partner in the back and screwing their worshipful customers who are clueless enough to giggle about
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They supposedly plan to allow MMS "later." Tethering is allowed on nearly every other carrier carrying the iPhone EXCEPT AT&T. AT&T in the US is a huge joke.
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Tethering is allowed on WinMo
Slamaxe 9th Jun 2009
I use my HTC Diamond tethered to my laptop on an unlimited data plan nearly every day. We rely on that connection to run our business when in the field and it works great. The problem is with the Iphone.

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No, it's not the iPhone.
Spuddrok 9th Jun 2009
Read the article---most major carriers around the world have it, just not here.

I used to live in the UK and I know O2 allows both tethering and MMS.

On the iPhone.

So your post loses its credibility.
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Not the iPhone
truthliesdown 9th Jun 2009
Jailbroken iphones and unlocked iphones tether on other carriers. It's not the
phone.
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Not the phone
compudog 15th Jun 2009
Jailbreaking or any other aftermarket geek activity is not relevant to this post. But thanks.
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Hell has officially frozen over.
heres_johnny 9th Jun 2009
God, even I can't believe it. I'm in total agreement with one of the biggest trolls on zdnet, a guy who has his head stuck so far up Ballmer's arse that you can't tell where one ends and the other begins. And yet I agree. AT&T is a joke stretching the bounds of credulity. Did Apple really just have a major presentation where every new iPhone feature ends with, "This feature may never be available with AT&T"? High-larious!
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At&T no MMS
bwhaire 9th Jun 2009
I have 3 phones for my household. I guess I will be switching out to Verizon asap.
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Ad what would that prove?
Skidpalace 9th Jun 2009
This is somehow news to you, and your solution is to switch to Verizon. That gets you what, exactly? It doesn't get you an iphone that tethers and sends MMS (a total waste of technology).
Good luck with that plan.
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Plent of reasons to avoid AT&T
compudog 15th Jun 2009
And MMS is the least of them.
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RE: AT&T: The iPhone's anchor
nothingness 8th Jun 2009
Let's face it, there isn't a single carrier that is all that great in the States. It all depends on the infrastructure where one is; nothing to do with the particular corporation. Want clear signal and high speed mobile access, move to the Far East.
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Excuses...
Bozzer 8th Jun 2009
They all allow you to send MMS, yes? Even AT&T. Wan't to see me laughing on your iphone, oh, that's right your not able to! ha ha ha!
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Just asking.
deowll 9th Jun 2009
Do they do better in a few selected urban areas?

Of course due to tall buildings blocking reception they might be better able to get some things to work much better in locations without tall buildings but dense housing.
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long time exclusive deal
bannedfromzdnetagain 8th Jun 2009
maybe the exclusive deal they made in 2007 isn't over and
apple has to stick to the contract. until next year or even
2011. who knows. i remember that by the time the iphone
was introduced steve jobs said once that he was very thankful
how supportive att was and how much of a risk they were
taking, so he probably cut a longer exclusive deal in
exchange.
0 Votes
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There's been no official description of the deal's details, so there's likely a way out of the deal with huge penalties, but the real problem with breaking a deal is the relationship and reputation issues.

Remember that Apple was brand new to the cell phone industry in 2007, so they're still very new players in the market. They've been very cautious so far. They're taking the time to "do it right" so the result is excellent, instead of quick and dirty.

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Excellent!
compudog 15th Jun 2009
Yeah - no cut and paste, among other ridiculously unacceptable missing features, is really doing things right. Bravo!
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RE: AT&T: The iPhone's anchor
terryzx 8th Jun 2009
I was all set to jump from Verizon for this but now there is
NO WAY that I will EVER go to the THIEVES at AT$T
0 Votes
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verizon are thieves too
aklsdjfhaklsdfh 8th Jun 2009
Over the years with verizon I found thousands
of $$$ in errors that often took me many months
to get refunded. And the errors just kept
happening. Specifically I would periodically
start getting charged for in-network and night
and weekend calls... fix the problem.... and it
would later spontaneously reappear again.
People who don't scrutinize their verizon bills
are definitely getting screwed. It was so
persistant that I came to believe it is system
wide and intentional. I am now getting ready
to file a complaint with the Massachusetts
attorney general office over their failure to
cancel my account when I requested cancellation
and their subsequent months of charges after I
stopped using my phone while I fought to get my
account terminated!

So don't think Verizon is going to be any great
improvement over ATT!
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I agree . . .
JLHenry 8th Jun 2009
My AT&T bill is less than it would be on Verizon's network. My friends and relatives who have Verizon constantly complain about having to get their bill corrected.

I don't think that there is any of the carriers in the US who are fair or reasonable in their fee structure. If one of the overseas carriers would come over here and offer the same service that they do in their home county (particularly a Japanese carrier), they'd probably own the market in a very short period of time.
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Cell Phone Duopoly?
philkoz 9th Jun 2009
Ever hear of T-Mobile? German company operating in US and other countries??

It does not seem to threaten VZ or ATT with either cheap service or better technology despite the long time it has been here.
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T-Mobile?
wineaux 9th Jun 2009
That's because their coverage area pretty much sucks unless you either live in a major metropolitan area or along a major highway. Until they actually either start putting up more towers and upgrading their data network, or buy someone who already has, then they'll always be an also-ran...
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TMobile Network Coverage
panzrwagn@... 30th Jun 2009
is marginal outside of major metro areas. Thus they have decided to focus on a younger, urban, price-oriented market. By serving that niche well, they have a lot of happy campers. Their business users are not so happy.
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Sprint
p0figster 9th Jun 2009
Sprint, in my book, is the most reasonable on
their fees. My wife and I pay $100/mo for our
family line where we get 1500 shared minutes,
unlimited nights and weekends starting at 7pm,
unlimited messaging (of all types, SMS and MMS)
and unlimited data (including for my
Blackberry) which includes GPS navigation. I
had data coverage almost the whole way from
Utah to Ohio when I moved last week, so I was
able to stay up on email, Twitter to family and
friends about where we were, write blog posts,
read my webcomics, etc... Can Verizon or AT&T
do that for the same price?
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RE: Sprint
EricW2000 9th Jun 2009
Sprint is ok until you need customer service for anything. I had Nextel for my business and it was great, but when Sprint took over, it collapsed. 4 times I needed to call customer service and spent a couple hours total talking to people that didn't have a clue. I couldn't leave fast enough. I recently moved the last Nextel/Sprint phone to Boost, and customer service did not improve.
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Breach of contract?
CyberZombie 9th Jun 2009
Not a lawyer (software engineer), but do Verizon users have a case re: the invalid charges?
I also live in MA and I've had the same problems with Verizon suddenly charging me for more than my contract. I've learned to examine every bill and squawk when necessary. I've always gotten refunds for the overcharges and had the situation corrected. It is annoying that it has happened several times, but I think it is just corporate inefficiency rather than aggressive consumer robbery. BUT: the flip side of the coin is that Verizon has the best coverage and technical service of any of the rest of them. I would buy an IPhone if I had Verizon as a carrier.
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verizon are thieves too
ExEC135CrewDog 9th Jun 2009
I agree whole-heartedly, though my experience with billing never equalled yours. My problem is that I absolutely love my iPhone. I love the technology and the abilities it provides. Unfortunately, in the state of New Hampshire, AT&T provides possibly the worst service I have ever had the displeasure upon which to rely.

I never get a truly 'good' signal. Not even from my HOUSE!!! Dropped calls? Almost never with Verizon. Service throughout New England, including the islands? New Jersey? Orange County CA? Never gave it a thought. It just worked. Call quality was uniformly good and service continuous, regardless of location. AT&T? Sketchy at best. I went for several motorcycling trips with my H.O.G. chapter this past week, and at most of our rest stops or gas stops: "NO SERVICE". This included areas around the state's most populous city, Manchester, and other areas that included places of higher learning, Keene, and Lebanon, and across the Connecticut River Valley, in the People's Democratic Republic of Vermont.

Of course down in Boston, where I work, AT&T is on it's best behavior, but even here I will sometimes drop a call.

When I had Verizon service this was never an issue regardless of my geographic location.

Like many folks, I have complained that my phone could use a better battery, and that it needed more storage for the audio books that keep me sane on my commute to A$$holechusetts, so I end up carrying my iPod for my sanity, and my iPhone for everything else.

Apple, If you are listening, the new 3G S sounds like the answer to my prayers, but I WILL NOT BUY ANOTHER ONE until it is available on a better carrier (esp Verizon).
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AT&T: One of the reasons I won't buy iPhone
ron.cleaver@... 8th Jun 2009
Some others are Sprint and Verizon and T-Mobile.
0 Votes
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I've had them all! Now I'm back with T-Mobile.
The less of all evils! I was hoping the new iPhone would get away from AT&T. They are one of the worst. Looks like I may have to stay with my BlackBerry or Upgrade to the Pre..
0 Votes
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RE: AT&T: The iPhone's anchor
gfeier 8th Jun 2009
I agree that AT&T is setting themselves up for mass defections when the iPhone exclusive ends, but I live in Cary, NC and the 3G AT&T coverage here is fantastic. Good signal everywhere. In fact, I recently walked into an elevator in a large medical building and my call continued all the way down without any problem, which I found surprising.
0 Votes
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confusing voice with data?
vmirchan 8th Jun 2009
is your data, not voice access consistently good everywhere in Cary and 10 miles outside of urban areas. Then you could say ATT 3G coverage is good - most of the country it is not
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Never noticed any problems
gfeier 8th Jun 2009
Seems to work all around town (mostly doctors' offices, unfortunately).
0 Votes
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Faraday cage?
Bozzer 8th Jun 2009
I thought lifts acting like a faraday cage. Every lift I have ever been in has had a profound impact on my signal. Unless yours was a glass elevator?
0 Votes
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Works great here, too
BillDem 8th Jun 2009
It's one of the only carriers that works well inside the casinos here in Vegas. And yes, I've been in a number of elevators where it worked fine. Oddly, a few stores I went into didn't work as well. Go figure. I would think elevators would be worse than grocery stores and such.
0 Votes
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cell phone repeater
Dark_Knight 9th Jun 2009
Ever heard of a cell phone repeater?

Most companies and business are installing repeaters in there buildings to allow cell coverage.
They can be specific to the carrier. Where I work we have both Verizon and AT&T repeaters in our buildings. Our signal works even in the basement as they have installed there.
0 Votes
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Faraday Cage
ExEC135CrewDog 9th Jun 2009
My various Mobile/Verizon phones worked well in elevators, and even in my high-RF-Level lab in Cambridge. Nextel (which my company insisted on buying for all its techies) not at all. Same with the AT&T service; to the extent that it works very poorly if at all in my building.

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