Archive for category AT&T Wireless

iPhone Popularity Drives Increased Capital Expenditure for AT&T

The iPhone’s success has not been without its drawbacks for AT&T. Most notable have been complaints about AT&T’s wireless network from a vocal iPhone community that have done serious harm to the company’s reputation. But recent signs suggest the source behind the network complaints are being ironed out, mostly due to recent network upgrades by AT&T. As analyst firm Trefis points out, the effort has not been without significant cost to AT&T. To the tune of about $2 billion more per year, in fact.

AT&T’s mobile capital expenditures have increased from $4 billion in 2007 (15% of mobile gross profits) to $5.9 billion in 2009 (18% of mobile gross profits). Mobile capital expenditures constituted 34% of all of AT&T’s capital expenditures in 2009, up from about 23% in 2007. We expect that AT&T’s mobile capital expenditures will continue to rise to 22% of mobile gross profits (45% of total capital expenditures) by the end of our forecast period.

But AT&T can’t be complaining too much. The company saw a 25% jump in profit last quarter.

AT&T Expands 3G MicroCell Trials

AT&T Wireless has announced the expanded availability of 3G MicroCells to several new states and metropolitan areas. The devices fix cellular dead spots in homes by acting as personal cell phone towers that plug in to your home’s broadband connection and turn it into an AT&T Wireless signal. MicroCells also require a GPS signal for activation to ensure users are not bringing AT&T Wireless service to unauthorized areas. A MicroCell can support up to 4 cell phone calls at a time, and minutes and long distance fees are billed as normal.

Previously the devices were available only in North Carolina. The new areas for the trial run are:

  • Georgia
  • North Carolina
  • South Carolina
  • San Diego
  • Las Vegas

Link: AT&T MicroCell

AT&T Wireless Bests Verizon In Download Speeds As Upgrades Begin to Pay Off

8 months after performing dismally in nationwide testing of the major US 3G networks by PC World and Novarum, Inc, AT&T Wireless has seemingly made true on its promise to upgrade its network to better compete with other major wireless carriers. In fact, according to PC World’s latest study, AT&T blew right past them.

In the study, which comprised 51,000 separate tests in 13 cities across the US, AT&T’s 3G network averaged download speeds of 1420 kbps, which gives them a hefty lead over second place finisher Verizon, which averaged 877 kbps. In third was T-Mobile with 868 kbps, and then Sprint with 795 kbps.

AT&T also dramatically improved the reliability of their network. The newest study had AT&T’s network providing a usable broadband connection 94% of the time, up from a last-place 68% reliability in the previous study.

Verizon, which previously had been commonly regarded to have the all-around best 3G network, saw its download performance decline by 8%. The number should be troublesome for Verizon, as according to PC World, only 15% of Verizon’s customer own smartphones, compared with AT&T’s 40 percent. The sheer number of iPhones on AT&T’s network has long been blamed for the company’s poor bandwidth performance.

Verizon responded to PC World by saying that the study’s numbers didn’t match Verizon’s own testing, and that it’s Verizon’s consistency, coverage, and reliability that sets their network apart.

The cities included in the testing were Baltimore, Boston, Chicago, Denver, New Orleans, New York, Orlando, Phoenix, Portland, San Diego, San Francisco, San Jose, and Seattle.

In PC World’s smartphone testing, which utilized the iPhone, Droid, and other popular smartphones, AT&T took the download speed crown in 9 of the 13 cities. Baltimore had the highest average download speeds at 1686 kbps. Denver was the worst performer at 778 kbps.

AT&T’s upload performance for smartphones was even more impressive, winning in 12 of the 13 cities. Overall, AT&T averaged a 773 kbps upload speed, which is 330 kbps faster than second place finisher Verizon at 443 kbps.

Link: PC World “AT&T Roars Back in PCWorld’s Second 3G Wireless Performance Test”

iPhone’s Wireless Carrier Download Limit for iTunes Raised to 20MB

Apple quietly raised the iPhone’s carrier download limit from 10MB to 20MB during the past week. The limit has been raised in other countries besides the US, so it appears this is an Apple-instituted change and not by the carriers.

Not really a big deal, but every bit doesn’t hurt. Wake me when they raise it to 1 gigabyte.

iPhone SDK Now Allows VoIP Calls Over 3G

A change in the new iPhone SDK allows VoIP calls to be made over 3G, according to a press release from the developers of iCall (iTunes link), a free VoIP app. Previously, VoIP apps like iCall and Skype were limited to making calls over WiFi connections.

Apple has had permission from AT&T to allow VoIP calling over 3G since October 2009 when AT&T issued a press release stating it had informed Apple and the FCC of the change in its policy:

AT&T today announced it has taken the steps necessary so that Apple can enable VoIP applications on iPhone to run on AT&T’s wireless network. Previously, VoIP applications on iPhone were enabled for Wi-Fi connectivity. For some time, AT&T has offered a variety of other wireless devices that enable VoIP applications on 3G, 2G and Wi-Fi networks. AT&T this afternoon informed Apple Inc. and the FCC of its decision.

AT&T may have bowed to pressure from the FCC to adhere to new Internet neutrality guidelines requiring wireless networks to allow users to use whatever online services they want as long as they don’t hurt the network. AT&T and Apple came under scrutiny by the FCC when Apple appeared to have rejected a Google Voice app for the iPhone.

While many are excited about the change, the practicality and quality of using a VoIP app over a 3G network remains to be seen. The biggest benefit to iPhone users comes with making International calls, where calls are free if the caller on the receiving end is using VoIP desktop software. And, International VoIP-to-phone rates are much cheaper than what the mobile carriers charge.

A real revolution won’t come until Apple allows apps to run in the background. As it is, users can’t receive VoIP phone calls unless they have the app launched.

Rumor: AT&T To Lose iPhone Exclusivity?

Among the rumors swirling around this week’s Apple Tablet event are reports that AT&T may lose their stranglehold on the American iPhone market. HotHardware is reporting that they’ve talked to an AT&T insider who claims Ma Bell is losing iPhone exclusivity. They report that this will be announced during Wednesday’s Apple media event, though they didn’t say which company (or companies) would be picking up the slack.

Apparently, AT&T may not be “losing” exclusivity so much as gladly getting rid of it. The sources say the company isn’t fighting to retain the iPhone due to the network stress the popular phone has caused and the resulting complaints about AT&T’s network it has created. AT&T may be picking up a number of other smartphone devices in order to compensate for losing iPhone customers when exclusivity ends.

AT&T Drops Unlimited Voice Plan Prices, iPhone Users Can Save $30

iPhone owners who pay $99 a month for an AT&T Wireless unlimited voice plan will soon be able to reduce the cost by $30.

AT&T Wireless announced today that, starting next week, their unlimited voice plan for all smartphones will be lowered by $30 to $69 a month. On Monday, all iPhone users can switch to the lower monthly cost regardless of how much time is left on their 2-year contract.

Even bigger savings are in store for iPhone users on Family plans. According to AT&T, a 2-iPhone Family plan with unlimited voice and unlimited data will now cost $179.99 per month. Previously, an unlimited voice Family Plan cost $199.99 with $30 unlimited data for each iPhone. With that pricing, a 2-iPhone Family plan was $259.97 a month with data. Now, $179.99, a savings of $80.

The price move was made in concert with a similar announcement by Verizon Wireless, who is also offering a $69.99 unlimited voice plan.

From AT&T’s Press Release:

All smartphone customers, including iPhone customers, may now buy unlimited voice and data for $99.99. For smartphone customers with Family Talk plans (prices assume 2 smartphones), unlimited voice and data is now available for $179.99. Texting plans remain unchanged at $20 for unlimited plans for individuals, $30 for Family Talk Plans.

The new pricing could be seen as a strategic move by the carriers to gain more smartphone customers through lowering the overall price barrier. Even with the new lower prices, the monthly cost of owning a smartphone is still much higher than that of “dumb phones.” More smartphones could mean higher revenue stream. The new pricing should entice some smartphone owners to upgrade to the now only slightly more expensive unlimited voice plans.

Federal Lawsuits Say AT&T Is Illegally Charging Taxes on iPhone Data Plans

AT&T is facing a number of federal lawsuits concerning the company’s allegedly illegal act of collecting taxes on mobile phone data plans, according to Ars Technica. The crux of the lawsuits is a 1998 law known as the Internet Tax Freedom Act that, in an effort to promote the commercial potential of the Internet, prohibits federal, state, and local governments from taxing Internet access. AT&T has been collecting taxes on cell phone data plans that, the lawsuits say, are essentially the same as “Internet access.”

A quick check of my iPhone phone bill confirms a charge of $13.40 by AT&T under a section titled “Government Fees & Taxes.” The individual charges are $2.50 for Illinois 911 Surcharge, $5.45 for Municipal Telecommunications Tax, and $5.45 for State/Municipal Telecommunications Tax.

AT&T has not commented on the lawsuits, which have been brought in several states by law firm Bartimus, Frickleton, Robertson, & Gorny.

AT&T Calls Operation Chokehold “Irresponsible and Pointless”

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AT&T has responded to Operation Chokehold, a protest proposed by blogger Fake Steve Jobs to overwhelm AT&T’s data network this Friday by having all iPhone owners use data heavy apps at the same time.

In response, AT&T told blog Cult of the Mac:

We understand that fakesteve.net is primarily a satirical forum, but there is nothing amusing about advocating that customers attempt to deliberately degrade service on a network that provides critical communications services for more than 80 million customers. We know that the vast majority of customers will see this action for what it is: an irresponsible and pointless scheme to draw attention to a blog.

Operation Chokehold ATTFake Steve’s call to action was in response to comments made by AT&T Mobility executive Ralph de la Vega, who told the Wall Street Journal that AT&T planned to use “incentives” to get heavy data users to stop using so much data. AT&T currently charges $30 for an unlimited data plan on top of the cost of voice plans, which start at $40.

Fake Steve’s original call for protest:

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!

Must Read: Fake Steve Jobs on AT&T’s Plan to Punish Heavy Data Users

Fake Steve Jobs

Used to be, we were innovators. We were leaders. We were builders. We were engineers. We were the best and brightest. We were the kind of guys who, if they were running the biggest mobile network in the U.S., would say it’s not enough to be the biggest, we also want to be the best, and once they got to be the best, they’d say, How can we get even better? What can we do to be the best in the whole fucking world? What can we do that would blow people’s fucking minds? They wouldn’t have sat around wondering about ways to fuck over people who loved their product. But then something happened. Guys like you took over the phone company and all you cared about was milking profit and paying off assholes in Congress to fuck over anyone who came along with a better idea, because even though it might be great for consumers it would mean you and your lazy pals would have to get off your asses and start working again in order to keep up.

….And now here we are. Right here in your own backyard, an American company creates a brilliant phone, and that company hands it to you, and gives you an exclusive deal to carry it — and all you guys can do is complain about how much people want to use it. You, Randall Stephenson, and your lazy stupid company — you are the problem. You are what’s wrong with this country.

Amen, brother.

Fake Steve Jobs “A not-so-brief chat with Randall Stephenson of AT&T”