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Love you fanboy guys. Apple making huge profit margin = GREAT. ATT&T making small profit margin = EVIL. :rolleyes:

I think the problem is how[ they make their profits that upsets people. AT&T could have done something like iMessage a while go, but they can't and won't because they're cuttin the fat hog on their text messaging scheme. And once the other carriers woke up to the same, it becomes the new reality. What's probably most insulting about his comments is about "for every megabyte used, I have to invest capital." I'm not so sure. Does a megabyte really cost that much?
 
Text messaging is just data. Thank Apple for iMesssage. Can't believe these fools get away with charging for text messages. There needs to be more competition.
 
If little Sprint can figure out how to make it work, then huge AT&T certainly should be able to. Y'all aren't a monopoly any more, y'know?
Sprint are doing it because they can't compete otherwise. What speeds are people on Sprint getting? If Sprint are so awesome with the "unlimited", why don't they have all the customers... it's because their network SUCKS compared to Verizon and AT&T.
 
there's got to be one satisfied customer in this thread somewhere.

I am satisfied cingular/AT&T customer for 8 plus years.

Never had a single billing problem. Get 24% FAN discount. Always good courteous customer service.

Also stock owner of both AT&T and Verizon. Both pay 5% plus dividend. One of better stable stock prices with that kind of yield.

I also have Verizon coverage. Verizon has been good to me also.
 
I have no problem whatsoever with what he said, it was stupid offering unlimited data when they didn't have the capacity to deliver it.

On the other hand, I look forward to a new competitor with a new model who can deliver and puts this clueless idiot out of a job.
 
Probably because of iMessage, AT&T removed all lower tier text plans. Only unlimited exists for $20.

And this asshat still lies awake at night worrying about iMessage.

Counting down the dayS until iPhone 5 comes out to switch!
 
Congratulation on the newly archived douche status.

Hahaha. What an idiot!:D
 
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The thing he isn't mentioning are the users with unlimited data that are barely using any data. No where close to 2-3 GB. Which AT&T says are 95% of their (unlimited data) users. So for that 95% they must be making bank because those users because they don't have to invest any additional money into the network for those users. They actually can pocket that money.

He's another out of touch millionaire/billionaire. Poor thing, lies awake at night cuz his shareholders are going to make a couple dollars less because of iMessage.
 
Time to Switch

Sounds like it is time to switch for many people so if you need to get a new phone, mobile internet, or tablet. Go to www.5linx.net/newu the phones are free or heavily discounted from the major carriers.
 
What kind of CEO goes out and admits these things? Is he stupid? Another example of the rich being so out of touch.

A CEO who thinks it is acceptable to say "I'm a dinosaur, an ancient being with an outdated business model and I'm too big to adjust to the market" is a poor representative of whichever company he works for.

Stephenson is probably just afraid he won't have cake on the table tomorrow, in which case he will have to eat bread like the rest of us.
 
That wouldn't work. U-Verse is still only available to about thirty million Americans while DSL is available to over one hundred million. Until U-Verse covers the entire footprint of the 'aging' DSL network don't act all high and mighty.

I recently contacted AT&T when I learned that U-Verse was available in my neighborhood.

AT&T said that they could upgrade my 1.5 Mbps ADSL service to 3 Mbps U-Verse. !!!

I'm now on Comcast with 22 Mbps guaranteed and "turbo" speeds of 120-130 Mbps.

And unlimited data.


Same with the Credit card companies. They make their money banking that you will miss a payment or two and pay fees and more interest. They don't make any money if everyone paid their bill on time and paid off their cards every month.

Citibank's been very nice to me, even though I have paid my entire balance on time every month in the 12 years that I've had the MasterCard. They keep bumping my credit limit - it's now at $60K (although the largest charge that I've ever had was $37K, and that was paid in full before the due date).

They get their 3% from the merchant whether you pay on time or not, you're simply wrong about "They don't make any money if everyone paid their bill on time and paid off their cards every month".
 
If it's on Wikipedia, it must be true! :rolleyes:

Read what I wrote again, it's the access to the bandwidth that is limited. We can't "run out" of data because we've used too much of it.

One important distinction to make is that most carriers are using tiered data plans but still experiencing congestion problems.

Why? Because tiered plans don't solve the problem of congestion.

There's nothing to stop you using up your entire data allowance (say 1GB) in one go. This might be in a very congested area at peak times.

Such usage is far more harmful to the carrier than someone downloading 5GB on an unlimited plan over an entire month.

If anything, a tiered plan makes the customer feel like they should be able to use it how they want. If you charge someone for "unlimited", then they're going to be more willing to expect limitations of service. If you sell 1GB, then the user expects to be able to use 1GB.

Carriers concerned about congestion would be better off throttling usage in places (i.e. cell sites) where there is a congestion problem only when there isn't enough bandwidth to go around
 
I'm sorry, but this is just nonsense. A text message is not "a very short phone call". SMS was designed to utilise a part of the GSM system that wasn't able to carry any useful data.

Yes it is, and that oft-repeated explanation, while having some truth, is far too simple.

First off, unlike a data connection that is always initiated from the phone and is shunted to the internet ASAP, a text message must traverse carrier resources and use the network to find a particular phone somewhere in the world.

The text arrives as a call page (aka a ring for voice calls or a pager message). This uses up extra resources already, as a page is sent to multiple towers in the last radio network you connected with.

When the phone receives the page, the message is not there yet. The phone must first authenticate itself to the network and get its own control channel. Then it can receive the control packet with the SMS stuck in it. This is 90% of what a phone call does.

Wait. Not done yet. Then the phone has to acknowledge receiving the text before giving up the channel. If the sender has requested a receipt, this whole process had to now be duplicated in reverse back to the sender.

If the recipient is offline, the text must be stored and tried later. If the recipient is an email address, the text must be translated and sent over the internet, and vice versa. This all requires carrier resources and computing centers that plain internet data does not need.

60 SMS, each sent a second apart would not use the same amount of capacity on the network as a one minute phone call.

Right, they'd use much more capacity. In fact, too many texts can overload a cell's control signal resources and deny voice service.

Again: Text paths are NOT the same as internet data connections. Not even close.
 
If it's on Wikipedia, it must be true! :rolleyes:

Read what I wrote again, it's the access to the bandwidth that is limited. We can't "run out" of data because we've used too much of it.
Please stop that nonsense.

We "can" and "do" run out of it anytime a tower is at capacity. You can't just "make more."

And that is the reality of the situation.

Playing pedantic word games won't change that fact anymore than AT&T claiming unlimited is really unlimited.




Michael
 
Again: Text paths are NOT the same as internet data connections. Not even close.

I never claimed that it did. I lump that in the same group of common mistakes as using a phrase like "cell tower".

The fact remains, Text Messaging profit margins are astronomically high - far higher than those for data or voice calls.

The cost of delivering a text message is far lower than the cost of delivering a call or packetised data.

The key design feature of SMS was that it didn't matter if a message is delayed for a short period. If there are too many users on a specific cell site, the message can be delayed. This doesn't happen with calls. If there's not enough capacity, users get an error message and can't place their call.

Even the carriers admit this.
 
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Wow look at all the classy people flaming this guy. He was being honest AND he is correct. Clearly he understands business which is why AT&T is extremely successful.

oh, and I love hearing the folks who are switching to Sprint because they are being throttled :) LOL You are going to Sprint so you can be throttled ALL THE TIME?

This forum is full of brilliant folks...

Dear, AT&T employee/troll...

Your idiotic commentary is void of any logic. AT&T's abusive pricing model pushed literally millions of their customers to both Verizon and Sprint. The only thing Mr. Stephenson understands is how to continue with a monopoly approach to the market after they no longer held a monopoly!
 
Call me ignorant, but after being able to pay all their employees, I really don't see the need for companies to save billions of dollars.

Positive return on investment for the shareholders? Or would you like to see your parent's (and other elder relative's) retirement portfolio go to zero?
 
I agree. I had nothing bad to say about Apple or AT&T.

This just sounds bad! I would consider leaving them.

Thankfully I did just leave AT&T for DSL and for a landline.

I will keep moving away from this. This comment just hits wrong.
 
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