“Consumer outrage about AT&T’s 3G service for iPhones is boiling over, but the dropped calls and spotty service reflect a greater lack of foresight in the wireless industry,” David Goldman reports for CNNMoney.com.
“Analysts say AT&T’s problems would have happened on any network that carried Apple’s iPhone because of the enormous amount of data downloaded by iPhone users. Over the past three years, AT&T’s data traffic increased 5,000% because of the iPhone,” Goldman reports. “‘The challenges that AT&T has are being faced by a lot of operators around the world: Very rapidly growing usage coupled with dense populations,’ said Daniel Hays, wireless expert and partner at consultancy PRTM. ‘Would it have been different on Verizon? Probably not.'”
Goldman reports, “AT&T accurately states that it has the nation’s fastest 3G network but it “probably bit off more than it could chew,” said Doug Helmreich, program director at consultancy CFI Group. ‘Now some of their customers are paying the price.’ iPhone users in New York and San Francisco in particular have been up in arms about frequent service interruptions.”
“Verizon has had a field day at AT&T’s expense,” Goldman reports. “‘There’s a map for that’ commercials have poked fun at AT&T’s smaller 3G footprint. And that has helped Verizon take market share, according to Piper Jaffray. But studies show that AT&T’s network is actually faster than Verizon’s, and Verizon’s ad campaign may be a bit misleading.”
Read more in the full article here.