Archive for category AT&T Wireless

NYTimes’ Pogue: AT&T Is Now the BP of Cellphone Carriers

Granted, we take the idea that, thanks to today’s iPhone 4 preordering disaster, AT&T is now the BP of the cell phone world, with tongue in cheek, as rich people not getting a preorder in for a new toy is not comparable to the worst ecological disaster in America’s history. But still, AT&T really made a muck of things today, and the New York Times‘ David Pogue has a short but sweet summary of today’s frustrating events, including reports of people trying to order a new iPhone online and discovering other AT&T customers’ account information on-screen.

I know I tried about 15 times today and still don’t have my preorder in. How long has AT&T had the iPhone now, and they can’t get this stuff straight?

How to Check If You Qualify for an iPhone Upgrade From AT&T Wireless

With the release of a new iPhone just around the corner, many people wonder if they qualify for AT&T’s discounted “upgrade pricing” for the new phone. The quickest way to check if you qualify is to simply dial *639# and hit Call from your iPhone. You’ll receive a text message back from AT&T that tells if and when your qualify. It looks like this:

Another way to check is to log in to ATT.com and click the Check Upgrade Options link on the rightside of your account view:

Another easy way is to stop into an AT&T Wireless store and ask them to check your upgrade status for you.

Qualifications for Upgrade Pricing

When you sign a 2-year contract with AT&T, it usually means you have to wait the entire two years to qualify for upgrade pricing. But there are exceptions. It’s possible to qualify early if your monthly costs are more than whatever ATT’s cheapest iPhone monthly plan is. As AT&T’s official iPhone FAQ explains:

AT&T, like most U.S. carriers, offers a variety of phones that we sell below our actual cost when customers agree to sign service agreements. In general, the more a customer spends with us, the quicker they become eligible for a price break on a new device. For example, iPhone customers who spend more than $99 a month per line with us generally are eligible for an upgrade between 12 and 18 months into their contract.

There may be more good news if you’re an iPhone 3G user looking to upgrade to an iPhone 3GS soon. AT&T recently started moving forward the dates for upgrade pricing eligibility. From their FAQ:

We’re now pleased to offer our iPhone 3G customers who are upgrade eligible in July, August or September 2009 our best upgrade pricing, beginning Thursday, June 18.

Note that this currently does not include the rumored fourth-gen iPhone (aka, the iPhone 4G, iPhone HD, etc).

How Much Money Do I Save With “Upgrade Pricing?”

When AT&T offers you “upgrade pricing” on an iPhone, it means they’re giving you the iPhone at a lower price than what Apple would normally sell it for. The upgrade pricing for an iPhone 3GS 16GB is $199. Without it, the cost is $599. That’s a savings of $400.

What About Those Rumors of a Verizon iPhone?

Rumors about a Verizon iPhone have been around for a while, but recently the chatter has been getting louder. There seem to be indicators that a Verizon-compatible iPhone will be released sometime in the fall of 2010. So what happens if you sign a two-year contract with AT&T and then decide you want to switch to Verizon? Unfortunately, there will be some additional costs to you.

First, the iPhone you bought through AT&T will not likely not work on Verizon’s network. Current rumors state that Verizon will have it’s own model of iPhone with a CDMA radio inside (CDMA is the type of network Verizon has). That means you’ll have to buy an entirely new iPhone. Fortunately, Verizon is likely to offer subsidized pricing just like AT&T ($200-$400).

Another cost will be an Early Termination Fee for breaking your two-year contract with AT&T. The fee is $175 minus $5 for each month of the contract you’ve fulfilled. Via AT&T’s official terms:

An early termination fee of $175 applies if service is terminated before the end of the contract term and will be reduced by $5 for each full month toward your minimum term that you complete. If phone is returned within 3 days, activation fee will be refunded. If phone is returned within 30 days in like-new condition with all components, early termination fee will be waived. All other charges apply. Some dealers impose additional fees.

So total cost to quit your AT&T Wireless contract early and switch to Verizon? Roughly $300-$500.

AT&T’s Mini Cell Tower in a Box Available Everywhere in Mid April, $150

In a nutshell, the Microcell is a $150 device that lets you use your own broadband network to make a phone call with an AT&T cell phone. For that $150, it will still use up your cell phone minutes. If you don’t want to use your minutes, it will cost you $19.99 a month. The logic on that is still a bit fuzzy to us, but we imagine it’s the same one where we pay 25 cents to send a text message.

Link: AT&T.com “AT&T Announces Nationwide Plans for 3G Microcell

Will LTE Finally Bring the iPhone to Verizon?

When Verizon begins testing its next-gen LTE 4G network this summer, it may be finally taking the first steps toward offering a Verizon iPhone. The testing will start off in 6 markets, with hopes to expand it to 30 by the end of the year. With LTE seen as Verizon’s best hope of landing the iPhone, how soon could an LTE iPhone arrive? Recent comments by Verizon and AT&T seem to indicate 2012 at the earliest.

Verizon’s current CDMA network has long been the main stumbling block for a Verizon iPhone. Apple, who is known for its focused product lines, has been unwilling to offer a separate Verizon iPhone model requiring a CDMA radio inside. Despite numerous false rumors in the past of an impending Verizon iPhone, Apple has long hinted they have no interest in putting the iPhone on Verizon’s CDMA network, which they view as too US-centric and ultimately a technological dead end. In March 2009, Apple executive Tim Cook had this to say about Verizon and the iPhone:

Well, from a technology point of view, as you know, Verizon is on CDMA, and we’ve shown from the beginning of the iPhone to focus on one phone for the whole of the world and when you do that, you really go down the GSM root, because CDMA is—doesn’t really have a life to it after a point in time.

Verizon and AT&T Wireless, the two top wireless carriers in the US, both plan on eventually migrating their wireless broadband networks to LTE. Verizon’s initial build out and tests this summer will give them a headstart over AT&T, who continues to focus on upgrading their 3G network.

Even with a head start, any LTE phone, let alone an iPhone, is unlikely anytime soon, according to recent remarks by Verizon’s Chief Technology Officier Tony Melone, who told told MSNBC that the first consumer devices for LTE will be laptop cards, with the first LTE phones arriving in 2011.

AT&T seems content to wait for the LTE technology to mature before building it into their own network. In recent comments to the Wall Street Journal, AT&T’s Chief Technology Officer John Donovan appeared to set 2012 as the year they’re expecting the possibility of an LTE iPhone:

2012 will be the time when you’ll have decent handsets, decent quantity of handsets, and decent choice of handsets,” Mr. Donovan said. LTE-compatible handsets require two antennas, and chip sets are larger than what is currently built into current third-generation, or 3G, devices. “Right out of the chute, it’s going to be difficult to engineer,” Mr. Donovan said of the first LTE handsets. “It’s going to drain the battery like crazy, and it’s going to be a fat brick.”

While Apple is surely motivated to join the iPhone with the US’s second largest carrier, they’ve also shown unwillingness to compromise on offering a clear product picture to the consumer. Until Verizon can meet Apple’s demand of “one phone for one world,” we’re unlikely to see a Verizon iPhone anytime soon.

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.