Report: AT&T Reputation Tarnished by iPhone Flaws

2009-12-15 10:05:11

Tony Bradley Mon Dec 14, 5:01 pm ET

A report from the New York Times this weekend suggests that the perception that

AT&T has an inferior wireless network may be more than greatly

exaggerated--they might be flat wrong. Not only that, but it may be the Apple

iPhone that is the root of the problems that are sullying AT&T's reputation.

AT&T has been saddled with issues and complaints about its service. Some users

took it so far as to file lawsuits against both AT&T and Apple claiming spotty

service, dropped calls, weak signals, and slower-than-advertised data speeds.

However, recent network surveys suggest that the problem might lie with the

iPhone hardware rather than the AT&T wireless network.

According to Paul Carter, president of Global Wireless Solutions, the results

of its extensive, nationwide testing of the different wireless networks show

that AT&T's network, contrary to user claims, is vastly superior to competing

networks. "AT&T's data throughput is 40 to 50 percent higher than the

competition, including Verizon."

Root Wireless reached a similar conclusion as a result of its testing of

wireless data networks. Ron Dicklin, chief technology officer of Root Wireless,

explained that its testing application won't work on an iPhone, so it relies on

other smartphone handsets to conduct its network surveys.

The implication is that the AT&T network is phenomenal...unless you use an

iPhone. Roger Entner, senior vice president of telecommunications research at

Nielsen, claims that the iPhone has engineering flaws with the chipset

connecting to the AT&T wireless towers, resulting in inferior voice and data

reliability.

Neither Global Wireless Solutions, nor Root Wireless share much in the way of

details of their testing methodologies, though, and AT&T is actually a customer

of Global Wireless Solutions. That fact was disclosed, and does not in and of

itself make the test results questionable. However, some question the sheer

volume of test calls alleged and imply that, perhaps, the results should be

viewed with at least cautious skepticism.

Assuming the reports and surveys are at least somewhat accurate, though, it

would seem that iPhone exclusivity may not be quite the jackpot its been hailed

as for AT&T. Apple pulls in record profits and receives acclaim for the iPhone,

while AT&T is dragged through the mud.

Apple has a Teflon reputation, and legions of rabidly loyal followers who

believe that the iPhone floats on water--to paraphrase. The AT&T network may

have weak signals, slow data, and frequent dropped calls, but the Apple

faithful are willing to look past those issues for the chance to continue using

the iPhone. They're just counting the days until Apple ends AT&T's exclusivity

so they can switch wireless carriers.

To those users, suggestion that the flaws may be with the iPhone and not the AT

&T network is paramount to blasphemy and sacrilege. If the reports are true, I

suppose these users will learn the hard way when they abandon AT&T and find

that the grass isn't any greener because the issues are in the device and not

the network.

The reality is that AT&T has more advanced smartphone handset users than other

wireless carriers, and it saw a 4000 percent jump in network data usage once

Apple released the iPhone 3G. Considering the massive demand for network

bandwidth from AT&T users, the fact that the network isn't constantly brought

to its knees seems admirable.

As with most stories, though, there are two sides and the truth most likely

lies somewhere in the middle. Even if it is true that the iPhone has design

flaws that contribute to reported issues, it doesn't change any of the recent

events which have further soiled AT&T's reputation.

AT&T still has to own the fact that its 3G coverage map is so sparse. It may

have the fastest 3G network, but Verizon has five times the 3G coverage. AT&T's

attempts to litigate that fact away simply drew more attention to it and made

AT&T look whiny.

That strategic blunder was followed with suggestions that users are actually to

blame for the network issues, and threats that AT&T may do away with unlimited

wireless data plans in favor of tiered pricing with data caps.

If its true that the iPhone is to blame for many of the perceived issues, AT&

T's other actions and statements are certainly not fostering goodwill with

customers or doing anything to stabilize its reputation.