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“It was the first time the carrier has addressed the most closely watched issue regarding its future in such depth in a formal filing,” Sheth reports. “‘We do not expect any such terminations to have a material negative impact on our wireless segment income, consolidated operating margin or our cash from operations,’ AT&T said in the filing with regulators on Friday.”
MacDailyNews Take: If AT&T brass really believe that they will face no “material impact” from the loss of U.S. iPhone exclusivity, they need to lay off the ‘shrooms.
Sheth reports, “The iPhone is AT&T’s best-selling phone and is widely considered to be single-handedly keeping the carrier from losing customers to rival Verizon Wireless. AT&T has held exclusive rights to cary the device in the U.S. since it was introduced in 2007. Speculation that the exclusivity contract could be nearing an end has weighed on AT&T’s stock price.”
Full article here.
MacDailyNews Take: Fellow American iPhone users, our long national nightmare is almost over.
Am I the only person in the world who isn’t having any problems with AT&T? My iPad 3G has performed remarkably in the northern Illinois area (not by Chicago). I wish they hadn’t done that BS with the unlimited data plan going away (I’m still on it!), but aside from that, their service has been solid.
That being said, my one anecdote is hardly representative of AT&T’s quality as a whole, but for what it’s worth, I’ve loved my iPad’s 3G access. It’s faster and more reliable than my GF’s crappy DSL
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@Matt
I think it’s more about the fact that ATT rips people off rather than the basic functionality that we expect out of their network. They have had just too many mistakes (from MMS to tethering to cutting unlimited data plans) over the last couple of years.
Dream come true
I’m afraid AT&T is living in la la land.
Agree with matt! I don’t have an iPhone so I can’t say first hand how great or crappy it is in the Mid-Atlantic region regarding AT&T, but my friends and strangers who I talked to regarding their iPhone have no problems or gripes about AT&T ‘s coverage, dropped calls, poor 3G, dropped calls, customer service, dropped calls, no bars, dropped calls. Nope, no problem whatsoever.
As for me, my iPad 3G on AT&T’s Unlimited plan has been great. Can’t say if I had the iPhone I would have same results because 3G data is probably different then the signal to acquire incoming calls but at least I don’t have to go out and find the sweet spot in my yard in order to get a bar, like I do with my T-Mobile GSM phone. Had I lived down the street from where I am, I’d have no problems. Of course!!! But overall, 3, 4 or 5 bars is pretty consistent regarding what I get in various rooms in my house with AT&T’s 3G service. So no complaints with AT&T here. Well except data price… but I have a exceptions to the pricing of gas, groceries, Apple products, pet food, tv’s what I paid for my car, basically anything that is taking money OUT of my wallet, I think the other is asking too much! And of course, my employer pays me too little! But that’s just me.
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You go with the guys with the best signal strength in the ares where you live, work and play. Those all being equal, you look at the TCO of your iPhone. The best plan wins.
You’re in the Mid Atlantic region! WTF, are you on a cruise ship?
It’s not like there will be a huge exodus to another carrier.
Sure some people will leave, but many will stay (70+% satisfaction), and those who do leave will not do so all at once.
While I don’t like not having a choice… I’ve had no more problems with ATT than I have had with Verizon and Alltel before it.
My three complaints with ATT
1. How they handled and timed the changes in data plans, mostly for the iPad
2. Starting with the 3G iPhone, being forced to pay the higher data charge even when I’m rarely in a 3G area. The closest coverage area is 4-hours away. Should have been a better way to handle this.
3. Anytime I walk into an ATT store. I’m convinced their employees are trained to be tools
But in terms of dropped calls, coverage area, international roaming, data speed, and onerous SMS fees – no better to sometimes better than competitors.
” 3G data is probably different then the signal to acquire incoming calls “
It’s also different than the signal. Schools? I’ve sh-t ’em.
@ Tiger Leopard
Maybe so. But Verizon is worse. By far. I don’t think I’ve ever had a worse customer service experience than I did with Verizon. Every single time I left the store, I was angry. Whether it be them lying about “overcharging” a battery that seemingly decided to stop working, or them putting bullshit charges on the account because the down key was programmed to open the browser on a “multimedia phone” (a category of dumb phone they made up to charge more for), or the $10 fee to “transfer contacts” because CDMA phones lack sim cards, or their crappy software they insisted on putting on every phone regardless of how horribly it was locked down.
The best part is when you call corporate to complain, and they tell you that all of their stores are independent contractors and they take no responsibility for the actions or words of their employees.
One thing I have to say in AT&T’s credit. Apple has truly made them little more than a dumb pipe. Verizon’s signal may be stronger in some areas, but I will never ever go back to the shitshow that is Verizon.
I actually don’t think ATT will have reduced iPhone contracts, if and when the exclusivity ends. Apple will simply sell more iPhones (through the secondary carrier) ON TOP OF what is already being sold for use with ATT. But all that won’t happen until Apple is able to ramp up production of iPhones to a point where there is no waiting list for the existing distribution channels, and every place that currently sells iPhones has at least a few dozen iPhones (of each config) in the back room.
Until that production rate milestone is reached, and iPhone supply increases to reach equilibrium with iPhone demand, Apple is NOT going to sell any more iPhones by having a second U.S. carrier. Therefore, Apple will just stay with ATT as the exclusive U.S. carrier.
If the iPhone 5 is unlocked and pan-capable, so users can change carriers seamlessly, ATT will have to earn their keep. Sprint is hungry and will offer damned good service where they can and an excellent price. T-Mobile probably will too. Erosion will happen. It will be like pre-iPhone times, where the devices aren’t part of the equation. Who even remembers what phone they had? You just went with your best deal among the available carriers. I was tethering my 12″ iBook to my Sprint phone in 2003 for $15 extra per month. Now the hardware standard is the iPhone, so what ever carrier offers the best services for the least money gets my business.
You people REALLY think it will be different on Verizon? All cell providers suck. Remember, Verizon is the reason why the iPhone is not on Verizon.
@Tiger Leopard
That’s a sticky position you put AT&T into. Can’t it easily be said that Apple’s success borne some of the problems AT&T has.
Remember it was Jobs himself who accentuated the relationship with AT&T when in reality, he had no where else to go! “I got no where else to go!” (Richard Gere quote from ‘An Officer and a Gentleman’ movie). Don’t blame AT&T’s lack of infrastructure for problems with a successful runaway hit product like the iPhone when Apple knew of AT&T’s limitations to start. Didn’t AT&T ramp up some of it’s capabilities before the introductory iPhone launch in June of 2007? Or was that for 3G? Or both?? Apple knew! But Steve himself couldn’t have dictated to AT&T when they tied the knot that our phone is gonna be a hit and we want you AT&T to be able to handle MMS and Tethering when tons and tons of people are going to clamour for it. More so then all your other products combined because we at Apple made it easy and cool for the users to want to do those things! When in reality the whole thing could have bombed OR become a typical overpriced cute niche product from Apple to go along with their other overpriced cute niche products (those are not my sentiments mind you, just what somebody MIGHT say).
It is one thing to offer those services where you expect a couple of million across your network to utilize, but it’s another when that number grows to tens of million and in concentrated areas where your buildup is not as it is needed to handle it all. Is it AT&T’s fault that Apple invented a smart phone the way it should be with it’s KISS approach to interface so as to entice one to want to utilize a features rich product, with an App store eating up your 3G data in your pipelines? All the while enduring the endless parade of insults from sufferers where AT&T’s service and infrastructure is lacking?
AT&T? Apple? I don’t know. Tough call!
I left Verizon after 15 years and came to AT&T before buying an iPhone. Our family found the service superior. I subsequently bought an iPhone. I have had NO problems; on dropped calls, poor ceverage, etc….
I see no reason to leave AT&T.
This will not affect AT&T. If Apple continues to make GSM iPhones for AT&T as fast as they can, AT&T will still be able to sell them all. If, in addition to AT&T, Apple begins spreading those GSM phones to T-Mobile, then AT&T may have a problem. There already waiting lists and shortages of devices as it is. With availability on more (GSM) carriers, this could only get worse. If they make a deal for a Verizon (or Sprint) phone, that would meant that they’d have to get a new factory ready, which will churn out CDMA phones for the two carriers. Obviously, this factory’s output won’t affect much the existing GSM production, although some component suppliers might have to split their output to two factories, thus reducing the output capacity of the GSM facility.
The ultimate point is, as long as Apple can sell every GSM phone they make, AT&T will continue to sign those two-year contracts at the same clip. As long at the production capacity for GSM phones doesn’t get affected by the new CDMA facility, AT&T has nothing to worry about.
People who wanted an iPhone today and walked into a Verizon store would most often walk out of it with an Android device (if sales people there are any good). If Verizon ultimately does get the iPhone, these people would represent the possible sales that Apple was missing so far. Whoever went to the AT&T store to ask for an iPhone would only get it if they had it in store. If not, even AT&T salesman would have no problem selling them a Samsung or HTC for the same money, with the same data plan.
@Al
You sure you’re not “TheConfused1”?!
No cruise ship here. But no worries, I’ll educate you Al… That wouldn’t be short for ‘Al Bundy’ would it?
Mid-Atlantic is the middle part of the eastern seaboard of the US. When you look at a map of America, look at the east coast. That would be the right side of the map. Your other right, unless you’re looking at it upside down to which you have bigger problems. Now, once there, start at the top at Maine and when you get half way down before you get to the end which is Florida… BINGO! Mid-Atlantic region.
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Humor! It’s a good thing! Right Al?
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None of the cell services are straightforward (3 syllable word for those in Rio Linda that means HONEST).
I’ve worked with most and they all have their tricks & twists. Just the way it is. Use it until you don’t like it and leave for another service.
That is all I can do. Better things to waste my time on.
I have been with AT&T since the 90’s. Well Cingular. I see no reason to leave as long as they continue to carry the iPhone. Any problems I have had are no different than any other provider.
I must admit AT@T has improved it’s service remarkably here in Jupiter,Fl. Not one dropped call, and snappy data service in the last month. Our 3Gs, Ipads and iPhone 4 are running very well. Even with tethering a jailbroken 3Gs is performing superbly. We’re shocked given that until recently my posts have trashed the carrier.
Bring on the other service providers and then hopefully we’ll have better rate plans and better service for those who don’t. Our one and only gripe is what we have to pay each month.
I expect to happily stay with AT&T which has, in my area, worked to upgrade and stabilize their system. When I was with Verizon – pre iPhone – there were bandwidth problems, dropped call issues, all the same stuff that is seen on any carrier. It will be interesting to see if an influx of iPhone users overwhelms Verizon (or any alternate carrier). By now AT&T has had 3 years to work on the issues, and it really has in my opinion. I’m not sure the other carriers know just how demanding iPhones, and especially their users, can be.
I think everyone is laying a layer of Android in to compensate. Should cover over things for a few quarters.
My ATT service got much better more than a year ago, and I will only change if my most frequent iPhone callers move to something else.
ATT will lose some iPhone customers, but probably not so much. Rather there will be a surge of new iPhone users on other networks.
You realize of course the real suffering will be among make-believe iPhone makers.
As if Verizon, in illegal collusion w/ Google, is going to be better (their current 3G is worse).