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In a lengthy BusinessWeek article, AT&T Mobility CEO Ralph de la Vega again attempts to clarify the company's plans for dealing with high-usage iPhone data customers by emphasizing incentives for shifting traffic off of its network rather than implementing tiered pricing as had been suggested earlier this month. The comments mark the second time a major media outlet has gone public with de la Vega's efforts to clarify his earlier comments.
Industry analysts have been figuring that AT&T would inevitably move from its $30-a-month, unlimited data plan for iPhone users to a "tiered pricing" model that charges according to usage. De la Vega says that no such move is imminent. "There are things people say I said that I didn't say. We have not made any decision to implement tiered pricing," he says -- repeating the last part for emphasis.
De la Vega's comments to BusinessWeek were made in a December 16th interview, which appears to coincide with the interview cited in the earlier Wall Street Journal report, although the latest report provides additional perspective on the misinterpretation of de la Vega's original comments that sparked the controversy.
Within hours the Web was filled with articles that said Ma Bell was about to raise prices or slap consumers with restrictive monthly usage limits. "There were no follow-up questions, so I figured everyone understood what I was saying," de la Vegas said in a Dec. 16 interview. "I guess I should have been more clear."
As noted in the earlier report, AT&T is looking to such solutions as free Wi-Fi hotspots and 3G MicroCell network extenders to shift data traffic to the Internet. The strategy sees Wi-Fi as a "lifeline" for overloaded cellular networks, whereas it had previously been seen as a threat to cellular companies.
It's a lifeline that AT&T plans to use heavily. On Dec. 15, AT&T announced a deal with McDonalds (MCD) by which the fast-food giant will waive for two hours a $2.95 Wi-Fi charge for customers at 11,000 restaurants. "Now customers can go to McDonalds and stay online as long as they want," says de la Vega. The agreement follows earlier deals with such retailers as Starbucks (SBUX) and Barnes & Noble (BKS).
AT&T has taken heat for apparent cuts in infrastructure spending, even as the iPhone has continued to drive increasing demand. Network performance monitoring companies, as well as more informal testing, have shown, however, increased performance for AT&T's 3G network, putting it on par with or better than its competitors.

Article Link: AT&T Again Moves to Downplay Reports of Imminent Tiered Data Pricing for iPhone
 

notjustjay

macrumors 603
Sep 19, 2003
6,056
167
Canada, eh?
This is not necessarily a bad thing if done right. At least you get a figurehead "unlimited" in the US, in Canada that $30/month currently gets you 500 megs or 1 gig depending on the provider. There are some people who got 6 gigs for $30 in a promotional offer, but that was a limited time offer.

Rogers repeatedly claims that the average iPhone user consumes about 400 megs in a month. I have no idea if those figures are realistic, or match the American iPhone experience as opposed to the Canadian one.

I'd be OK with, say, 2 gigs for $20. In fact I think that would be pretty fantastic.
 

knewsom

macrumors 6502a
Jun 9, 2005
949
0
Easy solution to improve their network and coverage:

GIVE AWAY the 3G microcells. Give them to businesses, governments, community organizations, and any home customer that's willing to allow general traffic.

Boom. Problem solved.
 

Becordial

macrumors 6502
Mar 8, 2009
422
0
This still makes it sounds like the network sucks, and little responsibility is being taken for it on their account. You know AT&T, history is littered with companies that failed to allocate a reasonable capital investment budget and eventually were deserted by their customers.

This week alone a certain car company found it has no value at all. Why? Because they put virtually no money into new models and let their customers down. Eventually customers stopped hoping for good things and walked away.
 

RunOverProducti

macrumors regular
Dec 26, 2008
232
1
Why would I want to connect to a wifi hotspot when I'm paying for unlimited data? obviously would be to just download a music from itunes that I couldnt wait to get home to do it.

Does that mean that they would treat blackberry the same? If they go forward with this thats when I leave AT&T, when will we realize that enough is enough?

iPhone users use alot of internet, AT&T sees that and wants to capitalize on it.

At what cost is it still worth to have an iPhone?
 

studiomusic

macrumors regular
Oct 1, 2004
161
1
Round the world
"There were no follow-up questions, so I figured everyone understood what I was saying," de la Vegas said in a Dec. 16 interview. "I guess I should have been more clear."

So, is he being any clearer here?

"There are things people say I said that I didn't say. We have not made any decision to implement tiered pricing," he says -- repeating the last part for emphasis.

No. Corporate double-speak as usual.

What this all means is that AT&T is getting ready for Imminent Tiered Data Pricing for iPhone! :cool:

Looks like it.
 

4mat

macrumors member
Jun 23, 2008
91
11
Wirelessly posted (SAMSUNG-SGH-A821/1.0 SHP/VPP/R5 NetFront/3.4 SMM-MMS/1.2.0 profile/MIDP-2.0 configuration/CLDC-1.1)

Try the data rates in Australia. Telstra, Optus and Vodafone charge insane data rates even for lite users. Whatever AT&T do, the US will still probably have some of the best deals. Competition in the market isn't does't always lead to better deals.
 

Chaos215bar2

macrumors regular
Jan 11, 2004
211
550
The strategy sees Wi-Fi as a "lifeline" for overloaded cellular networks, whereas it had previously been seen as a threat to cellular companies.

Is it bad that I read that as "The strategy sees Wi-Fi as a 'lifeline' for overpriced cellular networks, whereas it had previously been seen as a threat to cellular companies." the first time through? :D
 

dagamer34

macrumors 65816
May 1, 2007
1,359
101
Houston, TX
"We haven't made any announcements" is very different from "We are not moving to tiered pricing".

The latter would be lying if they DID movie to tiered pricing, which means that they are considering it, and the public is showing it's outrage were such a thing to happen.
 

mrpeepers

macrumors regular
Aug 14, 2007
145
0
AT&T sucks ass. Period.

Besides, they can't implement these changes on EXISTING contracts without first letting you OUT of your contract. So who gives a crap.
 

BryanLyle

macrumors 6502a
Aug 2, 2005
727
43
Tired of waiting for the Microcell solution. They said before the end of the year and my calendar says that there are only 9 more days in 2009.
 

Revivalution

macrumors newbie
Jun 8, 2009
17
0
Ready to say "see you later" to AT&T

For me there is now only one reason I am with AT&T. It's the iPhone. I pay outrageous prices compared to my friends who are with other networks and on similar packages. Customer care is zero to none and recently dropped calls have caused me some pretty major embarrassment with my clients. The fact that AT&T was not ready when MMS messaging was made available on the iphone along with tethering just adds to my AT&T frustrations. AT&T really could have owned the cellular market with some wise decisions to go along with the one right decision they made in carrying the iPhone. Short sightedness and some really bad management kept that from happening. I predict a huge migration to the first carrier outside of AT&T offering the iPhone.

Weird that a fine company like apple has chosen one of the worst companies in AT&T to manage its iPhone sales in the US.
 

Le Big Mac

macrumors 68030
Jan 7, 2003
2,809
378
Washington, DC
GIVE AWAY the 3G microcells. Give them to businesses, governments, community organizations, and any home customer that's willing to allow general traffic.

Boom. Problem solved.

Great--so my neighbor can surf porn on his iPhone and saturate my broadband connection? Um, no thanks.
 

JonB3Z

macrumors 6502
Jun 23, 2009
259
0
Mixed WiFi and cellular is a GOOD thing

From a systems engineering standpoint, it is inane for someone to be sitting within range of a WiFi hotspot with a WiFi equipped mobile device but using the cellular network for data access. It is inefficient use of spectrum (a public resource), deleterious to users who are not in range of a hotspot, and just plain stupid. Of course, the world is filled with people who don't share nicely....

Me, I want my mobile device to automatically select the best network connection available to it, so I see this as an enhancement of the service I am paying for.
 

sportsfan

macrumors regular
Nov 13, 2009
211
68
Remember?

For me there is now only one reason I am with AT&T. It's the iPhone. I pay outrageous prices compared to my friends who are with other networks and on similar packages. Customer care is zero to none and recently dropped calls have caused me some pretty major embarrassment with my clients. The fact that AT&T was not ready when MMS messaging was made available on the iphone along with tethering just adds to my AT&T frustrations. AT&T really could have owned the cellular market with some wise decisions to go along with the one right decision they made in carrying the iPhone. Short sightedness and some really bad management kept that from happening. I predict a huge migration to the first carrier outside of AT&T offering the iPhone.

Weird that a fine company like apple has chosen one of the worst companies in AT&T to manage its iPhone sales in the US.

Apple chose AT&T because they were the only carrier that would give apple total control over the phone. Verizon were control freaks to Apple went elsewhere.
 

cvaldes

macrumors 68040
Dec 14, 2006
3,237
0
somewhere else
Weird that a fine company like apple has chosen one of the worst companies in AT&T to manage its iPhone sales in the US.
It's not weird.

There are plenty of reports that say that Verizon had a chance to be the inaugural iPhone carrier, but couldn't come to terms with Apple. AT&T, the nation's #2 carrier in terms of subscribers makes perfect sense.

If you look at the bigger picture, GSM dominates the worldwide cellular marketplace at over 70%. By starting off with a GSM device, Apple was able to accelerate deployment to other markets worldwide.

Also, AT&T does not manage iPhone sales. Numerous retailers including Best Buy, Radio Shack, Walmart, and Apple's own retail and online stores sell the iPhone. AT&T actually sells a fraction of U.S. iPhones.

Apple manages iPhone sales and distribution to its channel partners.
 

bldmn

macrumors member
Mar 29, 2008
33
0
Weird that a fine company like apple has chosen one of the worst companies in AT&T to manage its iPhone sales in the US.
That's the part that really gets me too. How did it happen that Apple hitched their cart to a company like AT&T? I mean, they just aren't really in the same league. Surely Apple must have done their research and realized that they were involving themselves with a service that had problems.

Wouldn't Apple have had some sort of clause that said that they could get out of the deal if AT&T wasn't up to scratch?
 

cvaldes

macrumors 68040
Dec 14, 2006
3,237
0
somewhere else
From a systems engineering standpoint, it is inane for someone to be sitting within range of a WiFi hotspot with a WiFi equipped mobile device but using the cellular network for data access. It is inefficient use of spectrum (a public resource), deleterious to users who are not in range of a hotspot, and just plain stupid. Of course, the world is filled with people who don't share nicely....

Me, I want my mobile device to automatically select the best network connection available to it, so I see this as an enhancement of the service I am paying for.
Slow down there, partner.

My home Internet connection is a cheapo 768Kbps DSL line ($10/mo). WiFi does not inherently guarantee faster Internet connections.
 
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