Analyst: AT&T-Apple alliance is all about content

“The new AT&T has been on a roll recently. It got regulatory approval to acquire BellSouth, and its Cingular Wireless unit (soon to be renamed AT&T) got a lot of ink for its deal to provide the network for Apple’s iPhone. Still, the company faces a number of challenges,” W. David Gardner reports for InformationWeek.

Gardner reports, “Some of those challenges are highlighted by the iPhone deal with Apple, The iPhone will use AT&T’s Edge wireless data network for Web surfing and e-mail and other data services. But, notes Michael Voellinger, VP of telecom consultancy Telwares, ‘AT&T’s Edge is slow. AT&T and Apple are definitely playing catch-up [in terms of speed], but they will catch up.'”

Gardner reports, “Voellinger says the AT&T-Apple alliance is really about content. ‘They are not going to pull users with speed,’ he says. ‘They will do it with content and because of the content, it should be very successful.'”

“The iPod and its associated music features are an example of the superior content the AT&T-Apple combine is expected to generate for the iPhone. And faster speeds are on the way. AT&T has several other high-speed wireless data services in use and under development and Voellinger expects AT&T to eventually upgrade to faster services,” Gardner reports. “Apple seemed to say as much Wednesday at an analysts meeting. Tim Cook, Apple’s COO, said the firm is initially utilizing Edge because of its widespread deployment and indicated the firm will upgrade to a faster service when the technology is widely available.”

Full article here.

[Thanks to MacDailyNews Reader “LinuxGuy and Mac Prodigal Son” for the heads up.]

Related article:
How the once-hapless Cingular landed Apple’s iPhone – January 19, 2007

12 Comments

  1. Apple and someone whose technology is slow… Never heard of anything like that before *cough cough motorola cough*
    Hopefully, At&t will get to the new technology quickly. Nothing worse than being stuck at 500MHz for 18 months…. ” width=”19″ height=”19″ alt=”raspberry” style=”border:0;” />

  2. I hate the new AT&T. The only thing NEW is the marketing, it’s the same old crap SBC dressed up in new advertisements. Talk about misleading.

    So we all now know the FCC has been bought and paid for.

    Can you spell M O N O P O L Y!

    Yep, the new AT&T.

    Back when AT&T was SBC they reamed me hard on my land line and I’ll never go back to them because of it, not even for an iPhone. It took me a couple of months to wrestle my business telephone number away from their evil crooked hands. It took a phone call to the state attorney generals office to get them off their ass.

    IMHO, Cingular is one of the worst service providers on the planet. T-Mobile has the only Cell service that works from my office desk in the basement.

    When the SBC guy was here disconnecting and removing their hardware his Cingular phone dropped three consecutive calls while in my basement office. So much for their claims of superior service.

    If you’re thinking about using AT&T, just remember, I WARNED YOU, THEY SUCK!

  3. MDN – Your headline is misleading. Why not copy the original headline?

    Read the article – it says nothing about downloading content.

    Yes, some anal-cyst is going “content, content, content” almost like Ballmer and “developers”. But he says NOTHING in the end – just one deluded maybe somaday in the future there may be downloadable TV.

    I’ll give him a little credit – he’s trying to wrap his head aroundthe iPhone idea. But he still has his feet in the old Verizon style download content world.

  4. Will the iPhone have to access the internet through the phone company, of will it be able to use a WiFi connection if that is available? That would make a huge difference in internet use.

  5. Q~
    Your horror story about the bad service from SBC/AT&T has been echoed around about different places, but I bet if Apple had gone with TMobil we’d be hearing horror stories about them from another group of people.. it’s certainly possible that ATT is worse than the rest, but also possible that they all suck and you’re equally likely to get screwed by any given provider..

    In the end Apple had to chose 1 to go with to get the best deal on helping them subsidize their phone, give them freedom to do what they wanted, and cooperation on server end technology (aka visual voicemail).

    Maybe it wasn’t a perfect choice, but I don’t think it’ll turn out quite as bad as many claim. I expect ATT to agressively upgrade their service (after all they are the largest wireless carrier in the US now), and hopefully clean up their act on cust service as well.

    Qka~
    I think the “content” is more about the technology available than the “content” via wireless downloads. In other words the iPhone *itself* is content.

    Maybe I’m reading it wrong, but that’s how I saw it.

  6. ALL cellular phone companies suck. But because they can so late to the phone game Apple had to hook up with one provider…for the time being.

    Late 2008 will bring the unlocked iPhone.

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