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Rumor — AT&T Losing iPhone Exclusivity Next Week

MojoKid writes "An inside source over at HotHardware reports that AT&T will lose their iPhone exclusivity on 1/27, coincident with Apple's upcoming press event next week, though it's not yet clear what other carriers will be stepping in to pick up the iPhone. For anyone who has followed the saga, you may notice that you haven't seen AT&T fighting to extend their original exclusive agreement as of late. In fact, they have spent most of their time fighting Verizon's negative ad campaigns. This may not be all that surprising. Inside of AT&T, word is that the iPhone is causing more trouble than ever before. On some level, having the iPhone is hurting AT&T's image. Do you remember hearing about AT&T's 'horrible network' before the iPhone? The iPhone itself doesn't really handle the switch from 3G to EDGE very gracefully, so calls that are in-progress tend to fail whenever 3G connections aren't optimal and the phone attempts to step down to EDGE. It seems that AT&T may finally be tired of taking the heat."

39 of 353 comments (clear)

  1. Chant of the telcos by davidwr · · Score: 4, Funny

    "iPhone, you phone, we all phone for iPhone"

    Well, maybe before AT&T's woes.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  2. About time... by CrazeeCracker · · Score: 4, Insightful

    ...a fair amount of other countries already have multiple carriers for the iPhone. Let's hope this stirs up some competition.

    --
    Of course I didn't RTFA.
  3. ATT vs Verizon in NYC (ATT rocks for data) by Ritz_Just_Ritz · · Score: 4, Informative

    I work in NYC and have the choice between Verizon and ATT for my "company" phone service. I use the data features fairly frequently and when our group of 40-50 folks sits down and chats (we're pretty equally divided between ATT and Verizon users) it seems to me that ATT data service is usually faster and more reliable. Of the people who are most vocal about their Verizon support there, they seem to be mostly voice users and only casual data users.

    As far as the iPhone goes, I'd MUCH rather have a Nexus One if I was in the market for a fancy smart phone.

    1. Re:ATT vs Verizon in NYC (ATT rocks for data) by mejogid · · Score: 3, Informative

      The Nexus One is manufactured by HTC, not Google - they have a lot of experience making OEM phones (many of the network-branded phones of the last 15 or so years were designed & built by them).

      As for software, it's give and take - I like Android for the multiple concurrent apps (allows some very clever add-on features, such as automatically switching on your wifi when the cell identifier indicates you're in an area you normally use it), the widgets (especially calendar), the open app store (so emulators and alternate browsers are allowed) and the google integration & syncing. On the other hand, the app ecosystem isn't as good as the iPhone and the UI isn't always as fluid/good looking.

      Depending on your use case, I can see how Android could be far better suited.

  4. Verizon iPhone by chrisgeleven · · Score: 3, Interesting

    My AT&T contract is up on July 12th. I tell you, I am going to have a very difficult decision on that date if a Verizon version of the iPhone hasn't been announced or released by then. While I love my iPhone, the AT&T service is just not reliable at all in my experience in New Hampshire, especially if you get out of the major cities. You pretty much have to be in a deep cave to not have a Verizon cell phone signal here.

    My thinking is if there is no sign of a Verizon version of the iPhone by July 12th when my contract is up, I may very well switch to a Nexus One or Droid. It is sure going to be tempting.

    1. Re:Verizon iPhone by wwphx · · Score: 3, Insightful

      Doesn't your contract go month-to-month at that point? Can't you just continue to pay your normal monthly and wait for a carrier switch to happen? I'd wait before switching to a different carrier and getting locked in to another contract, only to find a couple of months later that the carrier that you want now offers it.

      --
      When you sympathize with stupidity, you start thinking like an idiot.
  5. AT&T Sucks by Derpnooner · · Score: 5, Informative

    Howdy, I worked with AT&T/Cingular right at the release and that is when "it" happened. From what I was told, AT&T reduced the range of their network to make data transmission more "reliable" for the iPhone, and in so doing, they pissed off a number of end users. We had so many complaints from people about their service no longer working in their homes, work, etc. I was there for the switch to 3G in OH and though the service is fast, the batteries don't last (heh); my phone(s) would be dead with very limited surfing. Oh well, maybe AT&T will rebrand again - back to Cingular and become completely Open Source... and monkeys might flight out of my butt. Bye iPhone.

    --
    In Soviet Russia, road forks you!
    1. Re:AT&T Sucks by morgan_greywolf · · Score: 5, Interesting

      I was there for the switch to 3G in OH and though the service is fast, the batteries don't last (heh); my phone(s) would be dead with very limited surfing.

      The batteries don't last in a lot of EVDO phones either. That's the fault of stupid phone manufacturers who switched radio chipsets without bothering to improve battery capacity or power consumption in the rest of the phone.

      The real problem seems to be that AT&T has very limited 3G coverage, while their EDGE network has very good coverage. Unfortunately, as you allude to, they had to degrade the EDGE network for the 3G iPhone. The 3G-EDGE failover problems actually have nothing to do with the iPhone and everything to do with GSM. This has never worked very well, not even in other dual band phones. EVDO to CDMA fails over pretty seamlessly, though in the very early days of EVDO back around 2005 or so, several phones (like the Moto Razr) had problems failing over as well.

  6. Shiny overrode Technical by SuperBanana · · Score: 4, Interesting

    The iPhone itself doesn't really handle the switch from 3G to EDGE very gracefully, so calls that are in-progress tend to fail whenever 3G connections aren't optimal and the phone attempts to step down to EDGE.

    Given that carriers test phones on networks, it would not be the least surprising to learn that AT&T technical staff evaluated the iPhone (or already had experience with the 'modem' it uses), told management about the problems, and management decided what was more important was the couple of years of revenue from people who wanted iPhones regardless of the network.

    I've been a customer of AT&T since the "AT&T wireless" days (pre AT&T, pre "cingular", etc.) and I can count the number of dropped calls on one hand. I currently have an original iPhone, jailbroken/unlocked, on a very old AT&T Wireless account. $30/month for a regional plan = awesome (as is having one device to surf the web where I can get Wifi, play games, listen to music, and make phone calls.)

    Living in New England, I also haven't heard many complaints from 3G iPhone users. Seems to be mostly NYC where people are screaming (yes kids, NY and NYC are not "New England.")

    1. Re:Shiny overrode Technical by Ibag · · Score: 3, Interesting

      Well, if we're going based on anecdotal evidence, I've been an AT&T customer since they merged with Cingular, and while I can't remember how the network was when I was living in New England, since I moved to Chicago, I haven't had a call over 20 minutes that didn't get dropped at least once. I don't have an iPhone, just a regular non-smartphone, so it's not just NY and it's not just iPhones.

      (as for why I am still a customer when they suck so hard if I don't have an iPhone, a family member gets a discounted family plan through work, and everybody else in the family has an iPhone, but I would change carriers if there were not extenuating circumstances.)

  7. Re:Who cares? by Anonymous Coward · · Score: 3, Insightful

    Have you actually tried both?

    Android's fine for geeks who don't like fuild usability, but it'll take another generation or two for Android to catch up.

  8. Uh, excuse me? by Anonymous Coward · · Score: 5, Insightful

    Because they are the only company to carry it, and it's such a data hog, it's largely to blame for AT&T's network troubles. We don't remember hearing about AT&T's "horrible network" before the iPhone--do you?

    Doesn't matter. AT&T made an agreement with Apple, they made contracts with users - really one sided contracts - to handle this. To blame a product and consumers for AT&T's short sightedness, mismanagement, and desire to squeeze every last penny out of their subscribers and their system is ridiculous.

    AT&T got the business and they didn't live up to their end of the bargain.

    Period.

    1. Re:Uh, excuse me? by ceoyoyo · · Score: 4, Insightful

      It's also not a problem with either the iPhone or the users. The phone works just fine on other carriers' networks in other countries.

    2. Re:Uh, excuse me? by j741 · · Score: 3, Interesting

      Here in Calgary, Alberta, Canada I have zero network (Rogers wireless) connection problems with my iPhone, however when I took that same phone to Houston, Texas, U.S.A. (with data roaming turned off) it connected to the AT&T network for roaming and my phone calls were routinely disconnected at random. Sometimes I would be only able to say hello and speak a few words before the call would be lost and I needed to redial. This pissed me off something fierce. I'm not surprised people are not happy with the AT&T network in the U.S.A.

      --
      - James
  9. Re:Who cares? by jellomizer · · Score: 5, Interesting

    Man you are dumb.

    For one the market share for iPhones is still much much larger then all the Android based phones out there. It is second only to RIM Blackberries.
    Most mobile application/web development is primarily tested for the iPhone So right now iPhone as more apps.
    The iPhone is the standard that all the other phones need to set the bar against.

    It isn't about features or technology it is about mindset. Right now the iPhone is still the winner (next year who knows bur right now they are the winner)

    AT&T got a lot of new customers just because people wanted the phone... For the most case this is opposite... People search for the plan they want and get the phone. If AT&T looses iPhone exclusivity it would really heart them. Well lets go with the other ones instead they may have better coverage or faster network. Spring G4 iPhone would be cool. Perhaps Verizon my have a cheaper Service. Perhaps t-mobile will allow tethering.

    Android is still second fiddle... I for one like to see it grow and give apple a good run for its money however you have to be an idiot to think the iPhone is irrelevant.

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  10. Sigh by slasho81 · · Score: 4, Insightful

    So why didn't you wait till next week to publish a verified fact?

    1. Re:Sigh by DaveGod · · Score: 4, Interesting

      By next week many people may have signed up with AT&T whom, had they known, would have waited to check for better deals / a preferred carrier.

      Don't hold your breath though. The situation in the UK after the iPhone recently became non-exclusive is a bunch of remarkably similar deals, the only notable exception being that Tesco offers a 12 month contract.

  11. Re:Who cares? by Suki+I · · Score: 3, Interesting

    Was thinking the same.

    This bit from the post: he iPhone itself doesn't really handle the switch from 3G to EDGE very gracefully, so calls that are in-progress tend to fail whenever 3G connections aren't optimal and the phone attempts to step down to EDGE. It seems that AT&T may finally be tired of taking the heat.

    That is enough for me to delay my purchase until I see something really good.

  12. Verified by deadend44 · · Score: 5, Informative

    My fiance works for an AT&T reseller and just verified that they are losing exclusivity this week.

    1. Re:Verified by Anonymous Coward · · Score: 4, Funny

      Sweetheart, you're not supposed to talk about it. I could lose my job.

    2. Re:Verified by Anonymous Coward · · Score: 5, Funny

      Oh, well alright then, there you have it: "deadend44's fiance" verified it, folks.

  13. Re:Underlying technology. by Anonymous Coward · · Score: 3, Interesting

    In what way is that "GSM"'s fault?

    As far as I understand it, the older version of the EDGE protocol that's being used on many a tower doesn't include a procedure for passing in a call that was being handled by 3G, so it just drops.

  14. Re:Who cares? by Nerdfest · · Score: 3, Insightful

    Admittedly, it is easier to design a simple fluid interface when you can only run one application at a time. It removes one level of complication that most of the other smartphones need to deal with.

  15. Droid vs iPhone by adairw · · Score: 5, Informative

    I have a Droid on Verizon and my girlfriend just got an iPhone on at&t. Nearly all my friends have iPhones and honestly I've always wanted one. However I didn't want to carry two att phones, as my work provides me a phone. So I've stuck with alltel/verizon for my personal phone. As a self proclaimed nerd I really enjoy what I can do on my android device and I see a ton of potential in the future but as far as end to end experience goes, the iPhone's interface is a lot cleaner/smoother. As far as apps go on android I've found just about everything I want as far as apps go. Even most of the ones my friends have on iPhone. One thing I really like about my droid is the quality of the calls both on speaker and on the hand set. Sounds really nerdy but I have a friend who works for a bank and he also has a droid, before he got it if he was in his server room on the phone I could hear the noise from all the servers and other equipment...Not with his droid, it sounded DEAD quiet. I kept asking him if he was really in the server room and he kept laughing at me saying he was. I like at&t and the iphone, I also like android and verizon. When it came down to it for me I wanted something new, not what everyone else had.

    1. Re:Droid vs iPhone by bogaboga · · Score: 3, Interesting

      Sounds really nerdy but I have a friend who works for a bank and he also has a droid, before he got it if he was in his server room on the phone I could hear the noise from all the servers and other equipment...Not with his droid, it sounded DEAD quiet.

      May be it has this this chip which is doing wonders on Google's Nexus One.

  16. Hmmm.... by rinoid · · Score: 3, Insightful

    You sure can smell it can't you? The smell of troll bait in the morning ...

    The iPhone is fine, so fine it's sold 10 million units. It works just fine.

    Before the iPhone we had the choice between crap and crappy and a decent RIM device. Please don't tell me about your Treo.
    After the iPhone we have a few choices of very good, very smart devices.

    The post is a rumor which doesn't suit /. as many have pointed out ... but most of the replies are trolls who feel it's their duty to point out how much the iPhone sucks, the users are idiots, or if only it ran Linux wouldn't the world be a whole lot better?

    I can't wait for the announcement to see what new device or new services are potentially opened up. I don't care to prognosticate but it'd be nice to have open carrier choices among all handsets -- but this has never really been the case. Thanks to innovation and a little more pressure from Google openly stating this as their goal it may happen. Just like DRM and iTunes where so many needed to blame Apple, call the service shit, call the device shit, it's happening with ATT, carrier lock-in, and the iPhone.


    Troll bait hoo-ha-ha!

  17. Not really. by IANAAC · · Score: 3, Informative

    That's GSM's fault, not the phone's.

    Maybe due to the US-implementation of GSM, but GSM can handle this just fine.

    You don't see this problem in Europe.

  18. You're forgetting the price by Chemisor · · Score: 4, Informative

    To get the iPhone, I would need to sign up for a VERY expensive and long term contract. There is no way I'm spending a thousand dollars a year for a friggin phone. To get the Nexus One I can buy a prepaid sim from T-mobile and pay $100/year, using WiFi for network connectivity. This price advantage alone is enough to give the Nexus One an enormously larger market than the iPhone.

  19. iPhone Users are Heavy Data Users by EvlG · · Score: 3, Insightful

    I have wondered if ATT is a victim of their own success with 3G congestion. They largely sold the iPhone on the merits of all the cool data features and these users consume a lot of wireless data. 3G networks aren't designed to handle many concurrent heavy users. So I wonder, if Verizon gets the iPhone and folks make the switch, will the situation just naturally improve for ATT? Will Verizon suddenly feel the pain of all those heavy users?

  20. Re:Underlying technology. by wumpus188 · · Score: 3, Insightful

    No wonder, when the whole country population is about a half of NYC (5.5 vs 9 millions)

  21. Re:Who cares? by karnal · · Score: 4, Informative

    No one in the US (except for TMobile customers?) gets a discount on the actual service if they buy their phone outright. From recent postings on other cell phone threads - and my own personal experience with ATT - once your "contract" is up, where the subsidy should disappear... it doesn't. We get to pay the same rates as if we were still subsidizing a phone.

    --
    Karnal
  22. Re:Underlying technology. by DrDitto · · Score: 5, Informative

    The USA really has extremes in population density. We have NYC and we have North Dakota. This is why CDMA was, at one time, the favored technology here in the U.S. GSM cell sizes are fixed at 45km. CDMA can go much larger (for greater coverage area, less capacity), and of course, can also go much smaller (for higher capacity).

    It is no wonder that Verizon has the best coverage in North America.

    Of course you can make a reliable GSM network that covers a vast area and has high capacity. It just costs a lot of money.

  23. Re:try finding iphone on att site by Professor_UNIX · · Score: 3, Interesting

    Are you just trolling? It's right on their front page as the 5th flash advertisement. If you click on it it goes to:
    http://www.att.com/wireless/iphone/

    They also have a "quick link" in their menu right to the iPhone 3Gs page.

  24. Re:Underlying technology. by DarkDust · · Score: 4, Interesting

    People don't want them here in Europe, either, at least on the countryside. People don't care about them in the cities, I think. At least I never heard somebody even talking about these towers here in Munich, except if the reception is bad.

    There was a very funny story a few weeks back here in Germany (I'm citing off the top of my head, maybe I don't get it 100% correct, sorry for that): A company erected a new cell tower and people began to complain about health issues like headaches that they directly blamed to the tower. After a few weeks there was some kind of meeting between the people and company officials where the people demanded that the tower gets switched off immediately because of their health problems. Turned out the company switched the tower off three weeks before said meeting due to some technical problems :-) Fine example of a negative placebo, IMHO.

  25. Re:Underlying technology. by Attila+Dimedici · · Score: 3, Informative

    You see the thing is, a carrier in Finland only has to compete with another carrier in Finland. In the U.S., you have to cover the whole country if you want to compete. Are there any carriers who offer the same level of service for the same price no matter where one goes in Europe?

    --
    The truth is that all men having power ought to be mistrusted. James Madison
  26. Re:Who cares? by jo_ham · · Score: 4, Informative

    I have never, ever had this problem on my iPhone, and I live in an area of the UK with mixed 3G and Edge/2G coverage - my house is in an area with no 3G, and driving a couple of miles down the road gets you into the 3G zone due to the town nearby. I have never had an issue with dropped calls due to going in and out of 3G coverage.

    Whether this is due to the network (I am on O2 in the UK), or the phone I am not certain.

    Put it this way, that sentence makes an assertion about what the iPhone does when it tried to fall back to Edge. My own experience is different. The truth is therefore likely somewhere in between, and the call issue may just be related to AT&T and may affect android phones in the same way.

    I also think that the "who cares?" post is a little bit naive - clearly a lot of people *do* care, since they are selling iPhones hand over fist. I welcome the introduction of the Android phones - more competition will drive the market (hopefully) to be better for all consumers, but outside of the most hardcore of geeks who have some sort of axe to grind about Apple, the iPhone is still a long way from a "who cares?" device. Proponents of Android that treat the competition that way would do well to be careful (and vice versa - Droid-based phones are going to offer some serious competition to iPhone).

  27. Re:Who cares? Makes no sence at all!! by pablo_max · · Score: 4, Insightful

    ....The iPhone itself doesn't really handle the switch from 3G to EDGE very gracefully, so calls that are in-progress tend to fail whenever 3G connections aren't optimal and the phone attempts to step down to EDGE..

    Seriously, this makes no sense at all.

    Your voice connection is not over IP, thus EDGE has nothing to go with it. InterRat handovers (3G - 2G) are not an easy thing to do. All phones implement this in more or less the same way. That way would be what the core spec says!

    EDGE is only for data. Just like GPRS.

  28. Re:Who cares? by anagama · · Score: 3, Interesting

    Actually, Tmobile's new unlimited plans do provide a break to those who pay up front. Their plans are $10/mo more with a subsidized phone with a 2 year contract compared to paying for the phone and having a month-to-month plan. If you look at their phones and the amount of the downpayment with a subsidized plan, it's clearly a better deal to just buy the phone and go MTM.

    --
    What changed under Obama? Nothing Good
  29. "in a cave": true by raddan · · Score: 3, Interesting

    I can confirm this. I was winter backpacking with my father last weekend in the White Mountains of NH. Normally, with AT&T, I get no cellphone reception whatsoever there (with the one odd occurrence of 5 bars near Wildcat-- but I suspect that both Mt. Washington and Wildcat have antennas on them), so upon reaching the parking spot in Franconia Notch and confirming that I had no signal, I just left the phone in my Jeep. However, that night at our campsite at Kinsman Pond, my father realized that he had forgotten to leave his phone in the car. For fun, he flipped it on, and, hey-- three bars! My mom was treated to a MMS picture of a deep woods winter wonderland. My dad has Verizon.

    When you consider that the trees around us were covered in nearly a foot of ice and snow, and we were sleeping in a shelter with several feet of snow on top of it, we really were in a cave. Amazing.