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AT&T CEO's "Only Regret" is Offering Unlimited Data Packages
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Too many posts to read them all, so this might have been covered.
Greed? No.His job to make money for ATT.
But, complaining about that publicly instead of talking about how they will adjust and innovate to become more profitable? Whiney.
Carriers will never offer unlimited again until they're forced to do it.
Even the true "unlimited" are limited in some way. Whether it's throttling or a slower, less complete coverage network (Sprint).
I always think back to the 1st ten iPhone when Apple sold it without any subsidy from the carriers. I was hopeful that SJ would revolutionize our backwards US market- but even he gave in to the terrible subsidized phone model.
Stifles competition and incentive to improve service.
Greed? No.His job to make money for ATT.
But, complaining about that publicly instead of talking about how they will adjust and innovate to become more profitable? Whiney.
Carriers will never offer unlimited again until they're forced to do it.
Even the true "unlimited" are limited in some way. Whether it's throttling or a slower, less complete coverage network (Sprint).
I always think back to the 1st ten iPhone when Apple sold it without any subsidy from the carriers. I was hopeful that SJ would revolutionize our backwards US market- but even he gave in to the terrible subsidized phone model.
Stifles competition and incentive to improve service.
It's the marketplace that demanded a subsidized phone, not Apple. The typical American consumer wants cheap hardware and is willing to sign a pricey, long-term contract for that privilege.
Note that the iPhone is sold completely unsubsidized in most markets around the world. Only a handful of markets have carrier handset subsidies.
Moreover, you can buy an unsubsidized factory-unlocked iPhone completely hassle free from store.apple.com here in the USA.
As a matter of fact, when you look at the total cost of ownership over two years, it's cheaper to do so, rather than to sign a contract with AT&T, Verizon, Sprint.
Here's my analysis on AT&T service (2-yr. contract) with a subsidized iPhone versus Straight Talk (no contract, prepaid) with a retail iPhone:
https://forums.macrumors.com/showthread.php?p=14818002#post14818002
Basically, you can get the same user experience of AT&T at a 44% discount if you use Straight Talk. Why would you pay more and get locked into a two-year contract with AT&T?
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The cheapest thing is to use some dumbphone with build-in WiFi sharing on a prepaid internet flat rate and an iPod Touch.
Actually, I had a prepaid dumb phone and an iPod touch. I finally caved into the iPhone 4S because it was one device instead two or three (the third being a digital P&S camera since the iPod touch's camera is pretty mediocre).
Things were particularly groovy until about a month ago, when AT&T changed their prepaid GoPhone plans to eliminate data packages from their daily plans.
I was using their $0.10/min. plan with a data package that would roll over if I bought a new data package before the month's end. In the end, I averaged about $12-13/month in cellular charges, mostly cellular data since I got so few calls and texts were handled by the Google Voice app.
That was awesome, far better than juggling 2-3 devices and still getting HSPA+ cellular data performance when I was out of WiFi range (I have great WiFi both at home and work).
But AT&T wised up and the GoPhone plans are no longer a competitive option for iPhone owners.
I still have my Motorola dumb phone as a backup device. It's an unlocked quad-band GSM phone, which means I can take it practically anywhere in the world and slip in a SIM and get local service. Right now it has one of my old GoPhone SIM cards, but I also have a Tru SIM.
Having done the dumbphone/iPod touch combo and now the iPhone, they are not the same user experience. I'm doubtful that I could go back even though I would be saving money. It's all the little intangibles that add up. For example: I loathed texting on my dumb phone, but it's easy on my iPod touch/iPhone. The camera on the iPhone 4S kicks ass. Always on Internet plus GPS on the iPhone makes for one heck of a great navigation device when you're traveling, whether you use free Waze or payware apps like Garmin or CoPilot.
I know where I can get free WiFi in my town, I don't know when I'm traveling.
Things were particularly groovy until about a month ago, when AT&T changed their prepaid GoPhone plans to eliminate data packages from their daily plans.
I was using their $0.10/min. plan with a data package that would roll over if I bought a new data package before the month's end. In the end, I averaged about $12-13/month in cellular charges, mostly cellular data since I got so few calls and texts were handled by the Google Voice app.
That was awesome, far better than juggling 2-3 devices and still getting HSPA+ cellular data performance when I was out of WiFi range (I have great WiFi both at home and work).
But AT&T wised up and the GoPhone plans are no longer a competitive option for iPhone owners.
I still have my Motorola dumb phone as a backup device. It's an unlocked quad-band GSM phone, which means I can take it practically anywhere in the world and slip in a SIM and get local service. Right now it has one of my old GoPhone SIM cards, but I also have a Tru SIM.
Having done the dumbphone/iPod touch combo and now the iPhone, they are not the same user experience. I'm doubtful that I could go back even though I would be saving money. It's all the little intangibles that add up. For example: I loathed texting on my dumb phone, but it's easy on my iPod touch/iPhone. The camera on the iPhone 4S kicks ass. Always on Internet plus GPS on the iPhone makes for one heck of a great navigation device when you're traveling, whether you use free Waze or payware apps like Garmin or CoPilot.
I know where I can get free WiFi in my town, I don't know when I'm traveling.
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AT&T's recent profit margin was 11.26%. It's only slightly above the weighted average for the domestic telecom sector.
http://biz.yahoo.com/p/844conameu.html
By comparison, Apple's profit margin was 29.66% -- over 2-1/2 times that of AT&T.
http://biz.yahoo.com/p/811qpmu.html
And that is one of the reasons I would not join ATT. Vote with my wallet as others call it. Of course the gravy train is over and wow customers are no longer getting one of their over priced messaging plans. Good for apple and other companies that put an end to that profit pump. maybe if they didn't have the balls to charge 20 cents per text message this would not have happened. Now its time for someone to figure out the data price fixing and put an end to that pump.
I agree with above poster about StraightTalk. Been using it for over 2 months and it works great
I agree with above poster about StraightTalk. Been using it for over 2 months and it works great
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
This forum is full of brilliant folks...
1. Sprint does not throttle data speeds. Check your facts. T-Mobile, however, does. (Faux 4g gets throttled to 3g after a certain cap)
2. It really doesn't cost a carrier more to offer unlimited data. AT&T's problem is how poorly managed their network was/is. It wasn't just iPhone, but all smart phones that have made data usage surge, and they were not prepared for that and had to invest in network expansions and updates to carry the higher load of users. That is where their expense lied. Once the network is up and running, we're talking maintenance and electricity.
AT&T and Verizon owe their success simply to the network capacity they both have, and covering larger areas of the country than their competitors. For many people, they don't have other options except the top 2 carriers. This is also the failure of Sprint and T-Mobile for not expanding their networks.
I don't blame a company for trying to make money, because that's kind of the point. It's just that at every turn, the top 2 carriers find new fees ($40 reconnect fee if you pay your bill late <at&T> on top of a late fee for instance) because they simply can because they have the numbers. I love Sprint's plans and prices, but their coverage is lacking. For a larger number of people, that's a reason to pay a premium for the same (and often lesser) services than a cheaper company just for reliability.
But please, don't defend AT&T. They're vile and evil. They gouge their loyal customers at every possible turn, and it will eventually bite them in the behind.
That's the FCC's job but they are too busy being bought out by special interest groups...
Yes, I have used an iPhone 4S on Verzion. Speeds were about 512Kb-1Mbps and a little over 1Mbps in good areas. Pings were pretty low, but what drove me nuts was every time I got a text my internet connection would drop. No way to use any internet connection while on the phone. Yes AT&T throttles during calls, but at least a connection was there.
This is why I am not a fan of slow CDMA technology. I don't know any one can stand the CDMA/EVDO limitations, yet alone sign a 3G contract in 2012??
That statement is completely ridiculous. You clearly haven't given that much thought. Wired bandwidth is finite. Wireless bandwidth is very finite. Not even cable providers give you unlimited bandwidth, at least Comcast doesn't in Michigan. If you go over the soft cap your service is canceled. I had an unlimited plan with Verizon, I went over the soft cap and got canceled without warning. How do you really think that a wireless provider can unless you want to pay many times more per month than you do today? Even then, if you got unlimited, you probably wouldn't get fast.
Disrupt your bushiness model???
I will tell you what is going to disrupt your business model... it is crapy service.
I have a family plan with three phones on an unlimited data plan. I still have unlimited texting since AT&T quietly axed two of its texting tiers in January of 2011, doing away with the $15/1,500 and $5/200 messages plans.
So explain how iMessage is costing you. I would say the opposite since people are now paying for unlimited texting but not using it as much. Maybe it would be true if everyone got an iPhone or Skype texting became the standard on all phones.
Your biggest threat is your crapy data and phone service. I live in chicago and during any city event it is impossible to use an ATT phone. So I am very close to canning our three phone plan with data and texting and changing to a different provider you **cking fool and that will cost you your $200 bucks every month.
I will tell you what is going to disrupt your business model... it is crapy service.
I have a family plan with three phones on an unlimited data plan. I still have unlimited texting since AT&T quietly axed two of its texting tiers in January of 2011, doing away with the $15/1,500 and $5/200 messages plans.
So explain how iMessage is costing you. I would say the opposite since people are now paying for unlimited texting but not using it as much. Maybe it would be true if everyone got an iPhone or Skype texting became the standard on all phones.
Your biggest threat is your crapy data and phone service. I live in chicago and during any city event it is impossible to use an ATT phone. So I am very close to canning our three phone plan with data and texting and changing to a different provider you **cking fool and that will cost you your $200 bucks every month.
I don't normally do this but....
This guy is a phoquing azzhole. Period. What about his ridiculous compensation and golden parachute and executive perks? Take his $6M a year plus 1,000,000 of unexcersized options, cutting all of that by 80% and drop the corp jet tonuse elswhere in the business, well, THAT WOULD BE A GOOD USE OF CORPORATE CAPITAL!! for example, add infrastructure in and around the big south of Market AT&T building in San Francisco so your customers can get more than 1/2 of a bar reception. !
This guy is a phoquing azzhole. Period. What about his ridiculous compensation and golden parachute and executive perks? Take his $6M a year plus 1,000,000 of unexcersized options, cutting all of that by 80% and drop the corp jet tonuse elswhere in the business, well, THAT WOULD BE A GOOD USE OF CORPORATE CAPITAL!! for example, add infrastructure in and around the big south of Market AT&T building in San Francisco so your customers can get more than 1/2 of a bar reception. !
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You are probably right about Apple being the greediest company to ever exist. I'm not giving anyone a pass for anything, but at least Apple delivers what it promises without whining about their losses which stem from undercharging the consumers.
Yeah, I mean that is completely worse than all those banks intentionally screwing people over and using government bailout money to throw parties.
How about we keep the hyperbole in check.
Yeah, I mean that is completely worse than all those banks intentionally screwing people over and using government bailout money to throw parties.
How about we keep the hyperbole in check.
What do the banks have to do with this? Just because the banks are even worse than AT&T, it doesn't justify the whining from Randall Stephenson.
A customer of both Apple and AT&T who has recently dealt with both about the iPhone and data issues, I have this to say. One company knows how to take care of it's customers, one does not. I was ready to sue AT&T over the unlimited data plan and had proof they were misrepresenting data.
After writing a letter to both companies and getting a response from both - Apple hands down wins in customer service. They went over and above attempting to fix the problem, not to mention taking care of other issues that cropped up. AT&T on the other hand - didn't give a **** about it - their answer is: our network is infallible.
In the end, AT&T never followed up as promised. Apple followed up until everything was answered and done. There's a good reason why customers would generally be happy with Apple, they understand customer service. AT&T does not.
As a customer who has been lied to over and over by AT&T I will say that I will be jumping ship to another LTE carrier as soon as LTE iPhones become available. Especially one that is offering a real unlimited plan. There is no sense in continuing to give money to a company that lies about their plans, then inflates a user's data usage by nearly double what it really is.
So Randall's real regret should be the lousy customer service his company has.
After writing a letter to both companies and getting a response from both - Apple hands down wins in customer service. They went over and above attempting to fix the problem, not to mention taking care of other issues that cropped up. AT&T on the other hand - didn't give a **** about it - their answer is: our network is infallible.
In the end, AT&T never followed up as promised. Apple followed up until everything was answered and done. There's a good reason why customers would generally be happy with Apple, they understand customer service. AT&T does not.
As a customer who has been lied to over and over by AT&T I will say that I will be jumping ship to another LTE carrier as soon as LTE iPhones become available. Especially one that is offering a real unlimited plan. There is no sense in continuing to give money to a company that lies about their plans, then inflates a user's data usage by nearly double what it really is.
So Randall's real regret should be the lousy customer service his company has.
Sorry about your experience.
That said, this shouldn't be a surprise. Apple basically tops all of the relevant customer satisfaction surveys.
All nationwide American cellular companies have dismal customer service ratings, with Verizon being the 37" giant in a land of three-foot midgets. Not one American mobile operator can be proud of their customer satisfaction scores.
I don't know why anyone would go to a carrier store for help if the same issue could be addressed by a nearby Apple Store. Same with telephone support.
That said, this shouldn't be a surprise. Apple basically tops all of the relevant customer satisfaction surveys.
All nationwide American cellular companies have dismal customer service ratings, with Verizon being the 37" giant in a land of three-foot midgets. Not one American mobile operator can be proud of their customer satisfaction scores.
I don't know why anyone would go to a carrier store for help if the same issue could be addressed by a nearby Apple Store. Same with telephone support.
Basically, but there are some caveats. And they keep folks on AT&T postpaid. Number one, the biggest one, is family plans for multiple lines. Straight Talk is good for 1 or even 2 lines but for a family with 4 or 5 lines it isn't a viable deal. Second, corporate/work discounts, anywhere from 10% on up. Can't do that with Straight Talk, either.
Also don't forget roaming (AT&T postpaid can roam anywhere) international use (regardless of the high cost--business travelers and such) and the fact that you can get tethering legally without a jailbreak or hack. It just works. Can't do that with Straight Talk, either.
What I'm saying is that for all the value Straight Talk offers - and it is a very good value right now - it isn't for every user or situation.
AT&T also had to pay T-Mobile a $2 Billion fee for the merger failure, amongst their network build out to keep up against Verizon's own debt extensions to build out their network.
That has nothing to do with Apple other than those networks wouldn't have been built out without the iPhone and future smartphones from HTC, Samsung and Motorola under Android which brought on the data explosion.
I pity the Telcos not a penny. They were fully subsidized during their original build out by the American Tax Payer.