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AT&T CEO Randall Stephenson Speaks About iPhone and iPad

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The Wall Street Journal reports (subscription required) on comments made today by AT&T CEO Randall Stephenson at an investor conference in which he noted that he expects Apple's iPhone to be an important part of the carrier's offerings for "quite some time". Stephenson did not address, however, whether the company is expecting to lose its exclusivity for the iPhone in the U.S. in the near future.

Stephenson also noted that he is pleased with the progress AT&T has made on its network, particularly in New York City and San Francisco, where users have been troubled by poor performance. In addition to voice quality issues, which Stephenson noted should be greatly improved by mid-year, AT&T has also been working to increase data capacity, with the company now handling half of all wireless data traffic in the United States.

Another topic of conversation at the conference was "variable pricing models", which Stephenson said are inevitable. The comments are reminiscent of similar talk from AT&T Mobility CEO Ralph de la Vega last December that led some to believe that tiered data pricing was imminent. AT&T moved to downplay such speculation in the following weeks and may find itself again having to clarify Stephenson's comments on the matter today.

One of the issues AT&T faces is the large amount of wireless traffic the iPhone generates. He said that AT&T is carrying half of the nation's wireless data traffic.

He said that carriers will eventually move to a "variable pricing model," and that it was inevitable that heavy users should pay more than low users. He added that emerging market products such as an electronic reader already follows the variable model.
Click to expand...

On the issue of LTE (4G) deployment, Stephenson reported that AT&T is "not in a tremendous hurry" to deploy the next-generation network, noting that the technology is still being developed and widespread availability of products taking advantage of the technology is not expected until 2012.

In a separate report, Reuters notes that Stephenson also addressed Apple's iPad, claiming that he sees the device as being mainly a "Wi-Fi driven product". The report curiously explains that Stephenson does not expect the iPad to generate significant numbers of new "subscriptions" for AT&T, although customers are expected to use "prepaid" services.

While AT&T has agreed to provide wireless connections to the iPad tablet computer, Randall Stephenson said he does not expect the device to result in many new service subscriptions for AT&T as consumers will instead use Wi-Fi or prepaid services, where they do not subscribe to a service contract.
Click to expand...

It is unclear what these terms are referring to, as Apple has only announced that AT&T will be providing month-to-month, contract-free data services for the iPad that could be considered both "prepaid" and "subscriptions".

Article Link: AT&T CEO Randall Stephenson Speaks About iPhone and iPad
 
Article Link
https://www.macrumors.com/2010/03/02/atandt-ceo-randall-stephenson-speaks-about-iphone-and-ipad/
G

gwangung

macrumors 65816
Apr 9, 2003
1,113
91
MacRumors said:
In a separate report, Reuters notes that Stephenson also addressed Apple's iPad, claiming that he sees the device as being mainly a "Wi-Fi driven product". The report curiously explains that Stephenson does not expect the iPad to generate significant numbers of new "subscriptions" for AT&T, although customers are expected to use "prepaid" services.
Click to expand...

Um, wasn't that the same sort of expectation that led to their networks getting so swamped???
 
P

propynyl

macrumors regular
Jul 3, 2007
112
0
When will Apple announce iPad preorder already!

I'm starting to get impatient, I mean, the ipad is supposed to ship this month! I smell a 1 month delay in the ipad's future, and I am NOT happy about it!
 
M

Mr Bow

macrumors newbie
Jan 31, 2010
24
4
Peterborough, UK
MacRumors said:
Another topic of conversation at the conference was "variable pricing models", which Stephenson said are inevitable. The comments are reminiscent of similar talk from AT&T Mobility CEO Ralph de la Vega last December that led some to believe that tiered data pricing was imminent. AT&T moved to downplay such speculation in the following weeks and may find itself again having to clarify Stephenson's comments on the matter today.
Click to expand...

As said I think this has been coming for a while. BUT, when they say that heavy users should pay more than light ones I hope that means they actually drop prices for light users rather than taking the current level as a baseline and going up from there. The realist in me suspects otherwise though:rolleyes:
 
S

segfaultdotorg

macrumors 65816
Jan 25, 2007
1,120
1,320
"AT&T is 'not in a tremendous hurry' to deploy the next-generation network."

That explains why I don't have 3G where I live. Guess they're not in a tremendous hurry to deploy the current-generation network, either.
 
A

Alfuh

macrumors regular
Mar 31, 2009
239
0
Mr Bow said:
As said I think this has been coming for a while. BUT, when they say that heavy users should pay more than light ones I hope that means they actually drop prices for light users rather than taking the current level as a baseline and going up from there. The realist in me suspects otherwise though:rolleyes:
Click to expand...

My thoughts exactly.

This better mean discounts for lower end data users and not price increases for higher end data users...
 
T

troop231

macrumors 603
Jan 20, 2010
5,822
553
pacohaas said:
It depends on the tiers:

$30 for 100MB
$45 for 250MB
$60 for unlimited???
Click to expand...

Heh there's a big gap IMO between 250mb and unlimited, a 1gb option is way more than enough in most applications and should be considered.
 
U

uspcommuter

macrumors regular
Aug 23, 2004
133
0
Can't agree more for getting discounts. But I don't think variable pricing is the answer. Because it will cause expectations to rise. e.g. I paid an extra $5 why is it so slow or I paid for data but I can't even get a connection comments will come flying every message board/tweet/fb wall/etc...still think infrastructure still the issue.
 
J

jellybean

macrumors regular
Jun 27, 2006
223
15
:eek: That is uncanncy - the AT&T guy looks exactly like the man in the Crucial ad in the same page! Even the tie v similar!

2.jpg
 
rdowns

rdowns

macrumors Penryn
Jul 11, 2003
27,397
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T

troop231

macrumors 603
Jan 20, 2010
5,822
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I'd really be interested in finding out how much it COSTS networks like ATT for the bandwidth of their wireless data backbone and then compare it to the actual price per month they charge iPhone users. You know they make a killing off of texts but what about the actual iPhone data, how much % profit are they making?
 
M

Mark Booth

macrumors 68000
Jan 16, 2008
1,654
494
Dear AT&T and other wireless companies: You want to have tiered pricing that might not get the whole of the country all pissed off at you? Then implement it in a fair and REASONABLE way!

Example:

250MB per month: $15
500MB per month: $25
Unlimited: $35

But here's the REASONABLE part... If I sign up for the 250MB plan but, in an odd month here or there, I go OVER 250MB, instead of then charging me some OUTRAGEOUS amount for each extra megabyte, kick me up to the 500MB for that month and only charge me $25. Likewise, if I go over 500MB, kick me up to Unlimited for $35.

But only for those months that I go over. If the next month, I'm back down to under 250MB per month, then I only pay $15.

The above pricing structure would REDUCE my iPhone bill. Instead of paying $30 for EVERY month, I'd only only pay $15 for some and $25 for others. I never used over 500MB in a month.

I'm HOPEFUL that is how the iPad plan will work. But, I have my doubts. I suspect if I sign up for the 250MB plan and I use 300MB, AT&T will charge me some ridiculous amount for the extra 50MB instead of simply kicking me up to Unlimited for that month.

Mark
 
A

acslater017

macrumors 6502a
Jul 25, 2006
716
123
San Francisco Bay Area
As an iPhone 3G owner, I would be happy to get the same price tiers as the iPad ($15 for 250 MB/month). I use my phone every day but I doubt that I exceed this amount. I'm pretty sure I know a few friends who would get an iPhone but don't want the added expense of $30 on TOP of their voice plan.

I doubt that it'll happen any time soon, but it would be a nice surprise to see $15 cut off of my bill every month.
 
iphone1105

iphone1105

macrumors 68020
Oct 8, 2009
2,106
316
segfaultdotorg said:
"AT&T is 'not in a tremendous hurry' to deploy the next-generation network."

That explains why I don't have 3G where I live. Guess they're not in a tremendous hurry to deploy the current-generation network, either.
Click to expand...

Maybe you should just move to an important part of the country, ya know, a big city, with swimming pools, movie stars, that kind fo stuff. If' I lived in bumblefudge I wouldnt expect superior service.
 
sushi

sushi

Moderator emeritus
Jul 19, 2002
15,639
3
キャンプスワ&#
MacRumors said:
Another topic of conversation at the conference was "variable pricing models", which Stephenson said are inevitable.
Click to expand...
To be expected. Tiered pricing. Those who use more bandwidth are expected to pay more.

Does that mean low users pay less or high users pay more. Probably the later?

MacRumors said:
On the issue of LTE (4G) deployment, Stephenson reported that AT&T is "not in a tremendous hurry" to deploy the next-generation network, noting that the technology is still being developed and widespread availability of products taking advantage of the technology is not expected until 2012.
Click to expand...
Most interesting comment. LTE is definitely the future.

While different technologies, putting up more towers, upgrading land lines to the towers, etc. will improve 3G and get AT&T in better shape infrastructure wise for LTE which is good news.

MacRumors said:
AT&T has also been working to increase data capacity, with the company now handling half of all wireless data traffic in the United States.
Click to expand...
Looks like it's a good thing that Apple went with AT&T and not Verizon.
 
T

thetexan

macrumors 6502a
May 11, 2009
720
0
At this rate Verizon will have more 4G LTE coverage than AT&T will have 3G coverage.
 
iSee

iSee

macrumors 68040
Oct 25, 2004
3,539
272
MacRumors said:
It is unclear what these terms are referring to, as Apple has only announced that AT&T will be providing month-to-month, contract-free data services for the iPad that could be considered both "prepaid" and "subscriptions".
Click to expand...

Sorry MacRumors, but I think it's pretty clear.
 
netnothing

netnothing

macrumors 68040
Mar 13, 2007
3,806
415
NH
Mark Booth said:
Dear AT&T and other wireless companies: You want to have tiered pricing that might not get the whole of the country all pissed off at you? Then implement it in a fair and REASONABLE way!

Example:

250MB per month: $15
500MB per month: $25
Unlimited: $35

But here's the REASONABLE part... If I sign up for the 250MB plan but, in an odd month here or there, I go OVER 250MB, instead of then charging me some OUTRAGEOUS amount for each extra megabyte, kick me up to the 500MB for that month and only charge me $25. Likewise, if I go over 500MB, kick me up to Unlimited for $35.

But only for those months that I go over. If the next month, I'm back down to under 250MB per month, then I only pay $15.

The above pricing structure would REDUCE my iPhone bill. Instead of paying $30 for EVERY month, I'd only only pay $15 for some and $25 for others. I never used over 500MB in a month.

I'm HOPEFUL that is how the iPad plan will work. But, I have my doubts. I suspect if I sign up for the 250MB plan and I use 300MB, AT&T will charge me some ridiculous amount for the extra 50MB instead of simply kicking me up to Unlimited for that month.

Mark
Click to expand...

This is far too reasonable and logical.....no way any cell carrier would do this! :D

-Kevin
 
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