DECEMBER 29, 2009 IPhone Snafu Stirs Network Concerns
By NIRAJ SHETH Wall Street Journal http://online.wsj.com/article/SB10001424052748703278604574624384084360644.html?mod=WSJ_hps_LEFTWhatsNews AT&T Inc. resumed online sales of the iPhone Monday to New Yorkers, after they were unable to buy Apple Inc.'s popular phone on AT&T's Web site over the weekend. The interruption—and AT&T's lack of explanation—was noted on several blogs, adding fuel to questions about whether the company's network can handle iPhone traffic, especially in dense urban markets. AT&T has come under scrutiny because of its exclusive deal for the iPhone, whose customers download data by surfing the Web or watching videos at a much higher rate than other phone users. As high-end phones that download data and run applications become more popular, other carriers, like Verizon Wireless and Sprint Nextel Corp., could face the same challenges, analysts say. A phone from Google Inc. that will be available early next year could put similar pressure on other carriers. "This is a problem really for all carriers," says Jim Andrew, an independent wireless consultant. "A lot of it has to do with the limit of spectrum, and that's a problem for everyone." Users who tried to buy an iPhone on AT&T's Web site and supplied a New York City Zip Code were instructed to choose another phone. A terse statement from AT&T Monday said "we periodically modify our promotion and distribution channels." An AT&T spokesman declined to comment on why the carrier temporarily stopped online sales of the iPhone. Since releasing the iPhone more than two years ago, AT&T has faced growing complaints about network issues, sometimes becoming the butt of ridicule. A recent Saturday Night Live skit dinged the iPhone for dropped calls. And Verizon Wireless, a joint venture of Verizon Communications Inc., and Vodafone PLC, mocks AT&T's network quality in an ad campaign. AT&T has said its network needs improvement in certain cities. "While there's more to be done, including [in] places like Manhattan and San Francisco, I want to assure you that we have a high sense of urgency," AT&T Mobility Chief Executive Officer Ralph de la Vega said at an investor conference this month. Criticism of the carrier has intensified in recent months after the release of a new version of the iPhone led to a sales increase and greater demands on the network, says Macquarie analyst Phil Cusick. "That's driven usage up in the last three months," he says. "Their network nationwide is pretty good, but in New York and San Francisco, it's particularly lacking." Areas like New York are especially difficult for cellphone companies because they need to put more towers closer together. In Manhattan, the "canyons" made by skyscrapers make it a challenge, says Mr. Andrew. "It's always been a problem," he adds. "It was a problem when it came to rolling out voice too." The network issues also have spurred rumors that AT&T may raise data-plan prices for iPhone customers, who now pay a flat monthly rate for unlimited Internet access. The company has denied it has made a decision on changing pricing. -- ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 Mail: antunes at uh dot edu *********************************** * POST TO [email protected] * *********************************** Medianews mailing list [email protected] http://lists.etskywarn.net/mailman/listinfo/medianews
