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AT&T CEO Sets Off iPhone Rebellion

Last week AT&T Mobility President and CEO Ralph de la Vega stated at a conference in New York that the company was studying ways to encourage high-bandwidth users to modify their usage. Like, uh, usage-based pricing maybe? Though he didn't say as much, he hinted at it as a future solution if the industry can't find a fix. At the same conference he finally admitted that New York's service is not up to par, and today AT&T's PR firm sent out a release stating that "AT&T has suffered in New York and San Francisco from better than average iPhone penetration. In these two cities, AT&T has been too successful in selling the iPhone, to the point where the network has been severely strained."

After the conference it was the "bandwidth hogs" that de la Vega put the fear into, however, as they rebelled against the idea of limited usage. As such, this guy started Operation Chokehold. Has your coverage been worse today? That may be why. Reportedly, "the scheme is aimed at bringing AT&T's wireless data network to a crawl Friday afternoon as a protest against plans by AT&T to impose fees on iPhone users who use what the company considers too much bandwidth."

The rebellion's fearless leader is also talking coverage, which seems to be a more immediate problem. He wonders why AT&T has taken in "billions of dollars in revenue from these new customers, but instead of plowing that money into building out their network, they’ve held the money back and applied it to earnings — lining their own pockets and looking after their investors instead of looking after customers." They did say they were too successful in selling product in that press release, after all. While there's no covert Operation battling dropped calls, there is this iPhone app to report where coverage sucks.

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Comments [rss]

  • babyhitler

    I have a iphone and besides the service everything about it is worth the money. It's the apps people. There is an app for everything.

  • TrippinJoJo

    im so happy that I didn't get suckered into the "smart phone" bullshit.

    I have sprint. not the best but I dont use my cell THAT much . I have the minimum plan: I pay total $52 a month/ including text msgs AND my phone is a PHONE. I'm "connected" enough at work and at home. I don't need internet on my phone.

    call me old fashioned or stubborn. I will not succumb the smart phone disease.



    Smart Phones make people stupid.

  • longacre

    Yes, but there's an app to make you look smart again.

  • books

    telecom dragged their feet for years, cause they were overcharging businesses for circuits and made sure they got every drop out of that before investing in any new infrastructure. they government ought to prevent any mergers. when companies merger, customers lose out.

  • SP

    This is exactly what the oil companies and related industries are doing right now with our transition away from oil based economy and technologies. Which is why we are mired in stupid wars and public moneys are being sucked out of our coffers.

  • SP

    "They're given tax breaks, federal funding, and have their own profits, but still haven't spent much on expanding their systems, coverage, bandwidth etc. It's a bloody disgrace."

    The same can be said of most of American capitalism. At least when it comes to Big Business. Only small businesses actually have to compete, provide innovation and quality products and services in order to survive.

  • mira

    Are there better phones on the market than the iPhone? Yes.

    Are there better carriers than AT&T? Yes.

    Now that that's out of the way: I can access the internet with my phone on AT&T right now (on Friday afternoon), and it doesn't seem any slower or spottier than usual. Just sayin'.

  • George

    It is completely idiotic and shortsighted. It's like opening a gym, signing up too many people, and then saying people can only come twice a week because we've been too successful at getting members, instead of expanding hours or infrastructure. Totally ass-backwards and if their goal is to alienate customers, this is certainly the easiest way to do it; i.e., promise one service, don't deliver, and then say you're going to charge more because you had the temerity to expect service.

  • JenChungsBaby

    WHAAAA! We want to use all the data services we want even if the network can't handle it!

    Even an all-you-can-eat buffet will throw you out after a while.

  • valeriob

    AT&T service sucks the big one. Such a shame to have this awesome shiny device on this network that has the fastest 3G network* ** ***.

    *not everywhere

    **especially not for you

    ***nowhere really

  • potsmoker

    why did we keep getting disconnected...

    i have an iphone.

    OH, ok.

    business users have better options,

    anybody who uses an iphone for business is an idiot.

    i remember field testing the first iphone,

    checked our intranet on public wifi and needed to inform my manager and the web design team about some mispellings on the page,

    oh you cant copy and paste?

    whatupwitdat?

    whats the point then?

    iphone is not a business phone, its a glorified ipod youtube phone.

  • Ace

    Iphone has copy and paste. Great phone, terrible network!

  • nicemarmot

    So instead of fixing their problems, they're just going to take away bandwidth? What a brilliant plan!

  • Andrew

    Operation choke is the dumbest thing imagined. Instead of doing anything negative to att it just effects user who have better things to do with their mobile data like say, business.

  • Dan

    Verizon and Sprint are CDMA. AT&T and T-Mobile as GSM. Two completely different wireless technologies.

  • Spirit of 76

    Some reports say that Apple did offer the iPhone to Verizon before its release, but the companies were unable to come to terms. I'm willing to bet it was Verizon's legendary tendency to try to control everything about a phone, including placing ridiculous limits on hardware and software (e.g. disabling Bluetooth for everything except headsets). That would not sit well with Apple, another company that likes having total control.

    In any event, some recent reports have said that Apple has been working with Qualcomm on a CDMA chipset for the iPhone. Of course, that was before the infamous Verizon ad earlier this month that mocked the iPhone as a "digitally clueless beauty queen." You don't insult one of Steve Jobs's favorite products if you want to make a deal with Apple.

  • ComicsRMe

    I'm personally hopeful that some team of tech geniuses can come along and offer free wireless coverage (essentially hack the old phones into a new network). Or at least open up the iPhones so they aren't held hostage by AT&T. I don't see gumming up the works really helping the cause of the rebellion.

  • felixthecat2

    I did wonder why Apple would team up with AT&T but according to one of their Geniuses, Verizon didn't have the network and AT&T fared better than Sprint and T-Mobile.

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