Software & Services Safari

Brian Sommer

AT&T, iPhone, Data Limits: Will Data Offset Trades Be Next?

By Brian Sommer | December 17, 2009, 9:30am PST

Summary: Got an iPhone? Do you use it? Do you want to pay more for that privilege? AT&T may move that way but it’s not getting a lot of sympathy. See what the Chicago Tribune and The Standard have to say.

The Chicago Tribune posted a compelling graphic this morning on the front page of its Business Section. It said that:

- “one laptop with a mobile broadband card typically uses as much data as”
- “15 smart phones (ex. iPhone, BlackBerry)
Or
- “450 standard cell phones”

The accompanying article described how tiered pricing or caps on downloads may need to be implemented. Why does AT&T need to do this? As the article says: “3 percent of iPhone users account for 40 percent of traffic”. Interestingly, it’s AT&T that is talking up this problem. The same AT&T that got the exclusive deal to carry the iPhone in the United States is carping because people actually use it.

AT&T’s goal in all of this usage education seems perplexing. It’s also causing unexpected negative PR. The Standard today ran a story simply titled: “AT&T: Strictly for Losers”. It seems The Standard isn’t too sympathetic with the AT&T problem. That article also goes further talking about the Verizon vs. AT&T battle over 3G coverage. The Standard has Verizon winning this one – and I’d agree. Even my own teenager concluded that the Luke Wilson ads for AT&T were about coverage in general, not 3G coverage.

Looking at this in total, AT&T seems upset that:

- people figured out their 3G network isn’t as extensive as a competitor’s
- their network is unprepared for the demands put upon it by the exclusive iPhone customer base they so definitely wanted
and,
- their already high pricing may have to go higher
- customers are getting wise to the above

I feel for the AT&T PR team. They’re trying to spin this but it’s not working. The only thing this PR team could get to worsen matters is to have Tiger Woods endorse their new data plans.

Going forward, instead of asking its customers for more money, maybe AT&T could improve its network to support the iPhone customers it has. Or, AT&T should instead permit its customers to trade data plan offsets. If businesses can do this for carbon emissions, why can’t cell customers trade their unused data downloads in an open market? Oh, now I know why AT&T won’t permit this: they wouldn’t make any money from it. Back to the drawing board….

Kick off your day with ZDNet's daily e-mail newsletter. It's the freshest tech news and opinion, served hot. Get it.

More from “Software & Services Safari”

The Year in Review in Software & Services

H-1B Visas, the AFL-CIO and the Need for Change

Topics

Apple iPhone, AT&T Corp., Standard, Smart Phones, Public Relations, 3G, Wireless And Mobility, Consumer Electronics, Personal Technology, Marketing, Corporate Communications, Cellular Phones, Brian Sommer

Brian is currently CEO of TechVentive, a strategy consultancy serving technology providers and other firms. He is also a research analyst with Vital Analysis.

Full Bio
Disclosure
Contact

Disclosure

Brian Sommer

I am co-owner of TechVentive, Inc. The company has been engaged on numerous consulting engagements, often for technology firms, service firms and litigators. As a general rule, I do not write about current clients of TechVentive. Should that occur, I will note this in blogs. Readers should assume that I have had client relationships with many ERP and other technology providers. Some of these relationships may be quite small and short-lived while others more significant. One of TechVentive's business units publishes research reports about technology providers. As a result, this business receives small amounts of revenues from a wide variety of software firms, software buyers and others when they purchase copies of reports. Some firms do secure reprint rights to these reports. None of these purchases, individually, represents a significant amount of total revenue for me and the nature of it is hard to predict where it will come from. I also provide some marketing strategy and/or market segmentation work for software firms as I have developed a unique database that segments the largest 4000+ technology buyers in the world. Many technology firms periodically engage me for unique views into this database for future marketing campaigns. I do not blog about these efforts and do not blog about client firms while they are active clients unless some pressing news story erupts. If that event occurs, I will indicate any perceived or real conflict of interest. Occasionally, I will develop unique intellectual property pieces for technology or service providers. If I should blog about a vendor with whom I have recently developed a special information product, I will note this in a blog to avoid any appearance, real or unintended, of bias. For the most part, I have no investments in technology firms. While I've been offered friends and family stock and other inducements in the past, I have steadfastly refused these. I used to be a partner with Andersen Consulting and had no ownership stake in the firm for many years. I frequently refer to this in my blogs and do not hide my prior association with the company. I did purchase a few shares of Accenture and Cognizant stock in late - 2008. I have sold some of those positions in late 2009. Readers should assume that most software conferences that I write about involved some measure of fees waived and/or travel reimbursement. I do not charge vendors to attend these events nor will I accept payment for same. I do get reimbursed for many speaking engagements. I generally note at the end of blogs whether the vendor reimbursed me for travel expenses. Generally, this includes airfare and hotel. I do not request, receive nor accept travel perks such as first class airfare.

Vendor HotSpot

The 360° Conversation around Cloud Computing

TECH VISUALIZER brings the social conversation to life... powered by Brocade

Learn More »

Related Discussions on TechRepublic

Did you know you can take part in these discussions with your ZDNet membership?

Ask a Question Start a Discussion

Comments

Add Your Opinion

Join the conversation!

Follow via:: RSS; Email Alert

Just In

RE: AT&T, iPhone, Data Limits: Will Data Offset Trades Be Next?

coolcat2720 17th Dec 2009

View in thread

Please Select
Please Select

0 Votes

+ -

Stupid marketing

ncted 17th Dec 2009

EDGE is technically a 3G technology, but AT&T wanted to brand their second generation 3G technology "3G," so they didn't bother with EDGE. The real truth is that AT&T has 3G coverage almost everywhere they have service, but it is just faster in some places for some devices. AT&T just painted themselves in a corner from a marketing perspective.

Reply
Flag

0 Votes

+ -

RE: AT&T, iPhone, Data Limits: Will Data Offset Trades Be Next?

lawryll@... Updated - 17th Dec 2009

So,

Here I sit in the middle of New York City. I have a full bars on my AT&T phone. Oh, wait...now I only have 1 bar. No...nevermind, I now have full bars again. When I do get a call it either:

a> Never connects to the other person
b> Connects, but is so crappy you can't understand anything.
c> Connects and stays connected.

I'd say C happens...maybe 1/3 of the time.

This is in addition to my AT&T laptop card, which connects every time...but alas, doesn't download data. Can't even browse to Google.com. AT&T is about to lose an aircard customer.

This is different than when I was here a year ago. Things seem to me to be getting worse for AT&T...not better.

Any carrier that achieves this poor of results in what arguably can be considered THE AT&T captal of the world (New York of all places...business use of the phone system is CRITICAL here) is truely deserving of their bottom-feeder ratings. They suck. I don't know how to put it any simpler.

They can talk all they want about their efforts...but until they can provide a MINIMAL accetable service they don't have a leg to stand on. Their efforts are not adequete. I don't care that they say they deployed thousands of new towers...I just care that my phone doesn't work. AT&T...PLEASE stop telling me why your service is bad and just FIX it. Please.

Reply
Flag

0 Votes

+ -

Ain't it Funny?

rshol 17th Dec 2009

Bad service in NYC but out here in the sticks, an hour south of Dallas (don't ask you never heard of the place), 5 bars of 3G, never a dropped call, excellent data speeds.

Actually since since ATT's headquarters is in Dallas its become the center of the ATT universe and service in and around the area is pretty good.

Reply
Flag

0 Votes

+ -

Operation Chokehold December 18

itanalyst2@... 17th Dec 2009

On Friday, December 18, at noon Pacific time, we will attempt to overwhelm the AT&T data network and bring it to its knees. The goal is to have every iPhone user (or as many as we can) turn on a data intensive app and run that app for one solid hour. Send the message to AT&T that we are sick of their substandard network and sick of their abusive comments. THe idea is we?ll create a digital flash mob. We?re calling it in Operation Chokehold. Join us and speak truth to power!