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Is the iPhone hurting AT&T's brand?

Discussion in 'Wireless News' started by charlyee, Oct 2, 2009.

  1. charlyee

    charlyee Ultimate Insanity
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    Is the iPhone hurting AT&T's brand?
    By Marguerite Reardon


    (CNET) -- The Apple iPhone has boosted AT&T's subscriber numbers, but network problems and a bevy of complaints from frustrated customers are likely hurting the company's reputation.


    AT&T has scored lowest among major U.S. wireless operators for customer satisfaction for smartphones.

    While a recent survey by the consulting firm CFI Group found that iPhone users are the most loyal smartphone users, with 90 percent saying they'd recommend the device to a friend, half of all iPhone owners surveyed said they would like to jump ship to another provider if given the chance.

    And for the first time, AT&T has scored worse than all four major U.S. wireless operators in terms of overall customer satisfaction for smartphones. According to the survey, AT&T scored 69 out of 100 among users, and 73 among non-iPhone owners. Verizon Wireless was the most satisfying carrier with a score or 79 out of 100 among smartphone users.

    Even Sprint Nextel, which has struggled to retain customers due to its poor reputation, scored better than AT&T among smartphone users. It got a 74 out of 100 in terms of customer satisfaction.

    The figures are among the first to quantify growing dissatisfaction with AT&T's network.

    "AT&T has never fared great in customer satisfaction surveys," said Doug Helmreich, program director with CFI Group. "But they've never been last. Now AT&T is coming up last among smartphone users. The iPhone has been a cash cow for AT&T, but that cash comes at a cost in terms of overall satisfaction."

    Public relations and brand experts warn that if AT&T doesn't take steps now to correct its image that it could come back to haunt the company in the future. The main issue for customers is that many users, especially those in urban areas, report poor network coverage and service. Problems with AT&T's 3G wireless have been widely reported on blogs, Twitter feeds, and even in published reports from BusinessWeek and The New York Times

    More:
     
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    #1 charlyee, Oct 2, 2009
    Last edited: Oct 2, 2009
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  2. Steve B

    Steve B Bronze Senior Member
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    One could also say that AT&T is hurting Apple's/iPhone's image or brand.
     
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  3. AnthroMatt

    AnthroMatt Big Meanie
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    I am quite happy with my Sprint smartphone! :p
     
  4. Yankees368

    Yankees368 Compulsive Signal Checker
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    I would definitely say the iphone has hurt AT&T's reputation. Up until very recently, AT&T has failed to knowledge that there was even a problem. Now, it is being reported that 30% dropped call rate is AVERAGE for AT&T and the iphone? That is a joke. I have not heard one happy person in the NYC area with the iphone anymore. That network is so clogged, it reminds me of the old AT&T TDMA network, before GSM was the network of choice. People never stopped _____ing that the network was overloaded. Deja vu, I guess.

    Curious, though, how no other country is reporting mass network failures due to the iphone. Maybe AT&T just outright sucks. ;-)
     
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  5. budney

    budney Resident Headbanger
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    Me too! And the price of my plan! :D



    I do think AT&T is way more at fault with this issue. I have had first hand experiance with the clogged network here in SoCal, I have had to lend my uncle my phone as his iPhone couldn't complete a call on a couple of occasions.
     
  6. charlyee

    charlyee Ultimate Insanity
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    I am extremely happy with my smartphone on AT&T, no dropped or missed calls & crystal clear reception. :)

    Yankees & budney, the complaints seem to be limited to the iPhone users in NY & CA mainly. Also iPhone is not as popular to the rest of the world as it is here & is never as much of a news item. In my experience the BBs are still the recognized choice for professionals, atleast in the countries I am familiar with & the numbers show Symbian to be the leader ww.

    The other thing I noticed is it appears that *only* the iPhone users on AT&T seem to be having the problems or atleast doing the complaining.

    I am hoping all this negative publicity is going to result in a stronger for everyone. :)

    Palm850/v0100 Mozilla/4.0 (compatible; MSIE 6.0; Windows CE; IEMobile 7.11)
     
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    #6 charlyee, Oct 3, 2009
    Last edited: Oct 3, 2009
  7. Jay2TheRescue

    Jay2TheRescue Resident Spamslayer
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    If you think about it though, some states are larger than entire countries... When a carrier has a (relatively) small area to cover, its easier to do it.
     
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  8. RadioRaiders

    RadioRaiders RF Black-Belt
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    Keep in mind that AT&T is cramming GSM and 3G into the 850/1900 bands, when most other countries have 2100Mhz dedicated for 3G, and GSM dedicated to 900/1800. So AT&T faces specturm issues that alot of other countries don't have...
     
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  9. charlyee

    charlyee Ultimate Insanity
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    Yes, excellent point, thank you.

    Based on that Verizon would have had the same issues since EVDO uses the same bands as voice (850 & 1900), T-Moble would be the one to fare better with their 3G on 1700.

    How about Korea & other CDMA countries? Or, in other words is EVDO always on the same frequency as voice?

    Just curious!

    Thanks much :)

    Palm850/v0100 Mozilla/4.0 (compatible; MSIE 6.0; Windows CE; IEMobile 7.11)
     
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  10. budney

    budney Resident Headbanger
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    I would have to disagree with it being limited to iPhone users. The network in SoCal is overloaded, and it is affecting everyone. That is why I put more blame on AT&T. Even if it is the iPhone causing the issue, AT&T needs to put their foot down and tell Apple what they need to do to fix it. You are right about the iPhone ww, but once it is released ww it will be interesting to see if it dose affect other networks.

    I hope AT&T can fix this issue, as it would give me another solid choice for a provider in my area. I would love to have the all the choices in unbranded devices, and to switch between devices easier with the SIM. :)
     
  11. charlyee

    charlyee Ultimate Insanity
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    Agreed :)

    As mentioned before AT&T/Apple under estimated the data usage of the iPhone users. Someone pointed out in a different thread that the previous Smartphone use was limited to professionals, the iPhone being more of an iTouch/iPod device is in the hands of many who use it to access data much more than other Smartphone users.

    Like you said, AT&T needs to put their foot down & do whatever it takes to upgrade the network & stop the flood of complaints.

    I agree with the the statement that many iPhone users came to AT&T for the iPhone with no or little knowledge of whether AT&T is the right choice for them, these are the ones who are complaining the most & rightly so because AT&T does not work for them.

    It would be the same scenario if I ported to Sprint for Pre or to T-Mobile for the G1. I would be complaining about the device/network incessently. :)

    My iPhonie friend (a dedicated Mac user) ported from USCC, which has stellar rural coverage in my area, although AT&T is excellent in my area but USCC is still better in the rural areas. He is very disappointed, since his job is mostly in the rural area & is thinking about going back to USCC to get a simple phone & using the iPhone as a PDA/web browsing device.

    Palm850/v0100 Mozilla/4.0 (compatible; MSIE 6.0; Windows CE; IEMobile 7.11)
     
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  12. budney

    budney Resident Headbanger
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    So is the iPhone's data connection "always on"???

    Sorry but that "smartphones limited to professionals" is BS IMHO, smartphones are spreading quickly through the regular population these days. It's got to be the way the iPhone handles data and the data connection.

    EDIT: We the people learned a good lessen, "Never pick a phone over a provider". ;)
     
  13. charlyee

    charlyee Ultimate Insanity
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    Lol, I didn't phrase that right, the op had done a better job. I meant to say that prior to the iPhone the Smartphone WAS limited to the *professionals* (& geeks like us), the iPhone is in many ways responsible for the popularity of the Smartphone amongst the *normal* people. I believe the BB Curve contributed to that as well.

    An iPhonie would have to answer your data question. ;)
    Palm850/v0100 Mozilla/4.0 (compatible; MSIE 6.0; Windows CE; IEMobile 7.11)
     
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  14. cellular_freak

    cellular_freak Senior Member
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    I'd definitely say it's an AT&T problem. In my area of Michigan, AT&T has always had coverage issues and dropped call problems. In my family, my mom and brother have RAZRs and I have an iPhone. We all experience the exact same issues with AT&T in the exact same places. It's AT&T's network, not the iPhone. My county has a population of 50,000 people, so I very much doubt that the iPhone is clogging the network that much in such a rural place. Especially when AT&T has always had problems even before the iPhone, tells me it's AT&T.

    I think a lot of the reason why some people would like to associate this problem with the iPhone is because many of the complaints are coming from iPhone customers who used to be Verizon or Sprint or T-Mobile customers who were very happy with the coverage they had (including myself). Because we wanted the iPhone, we were forced to switch to AT&T and deal with a subpar network that was already in place in many places. (Like I said, my mother, brother and many other family members already had AT&T before the iPhone was introduced to the world and they had many many problems).
     
  15. charlyee

    charlyee Ultimate Insanity
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    cellular_freak, I hate to state the obvious, but I will anyway. :).

    Knowing AT&T has poor coverage in your area, you still decided to go/stay with them. Sorry to disagree, you were not "forced", you voluntarily chose to get the iPhone & disregard the sub par coverage in your area.

    As I mentioned in my post it would be the same situation for me if I got the Pre, G1, or even the Tour, I would have no one to blame but myself! ;).

    What to me is disconcerting is the complaints from areas like NY & So Cal, where the coverage has been going down lately after the iPhone introduction, related to it or not. :)
    Palm850/v0100 Mozilla/4.0 (compatible; MSIE 6.0; Windows CE; IEMobile 7.11)
     
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  16. Matt

    Matt Twin girls!
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    I don't think the fact that AT&T has only two bands is necessarily a spectrum issue. I thought I recalled reading some time ago that AT&T was being criticized for having too much spectrum in many markets - 80 Mhz or more. I don't know any of the details, but my point is you could have access to 4 bands of spectrum (as T-Mo does with 850, 1700, 1900, 2100) and have less spectrum owned than a company that has fewer bands.
     
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  17. viewfly

    viewfly Mobile RF Advisor
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    No, I think it depends upon the region. I know of 5 people who recently did and will be soon switching from Verizon to ATT to get the iPhone. And the numbers don't support any reverse migration at this time.

    Regarding CA and NYC, last month ATT install about 1600 new towers (I think that is right) in the San Fran and NYC metro area at 850 Mhz. It will be interesting to see how those areas are improving.

    Also, It appears that the recent MMS rollout was and still is mostly successful, after some small and expected hiccups. Somehow the smoothness of that went unnoticed. Mostly the complainers post I guess.

    Regarding the lack of disaster with the MMS rollout, here is one point of view I found online:

    " In 2008, MMS made up just 2.5 percent of all messages sent from phones worldwide, meaning about 97.5 percent were SMS text messages, according to ABI Research. ABI expects the MMS share to grow to just 4.5 percent by 2014.

    Given the amount of data that iPhone fans are already using on AT&T's network for Web browsing, video, e-mail and social networking, it would take quite a popularity breakthrough for MMS to drag down the infrastructure through sheer traffic, analysts said."


    I don't think ATT brand is degrading, nor Apple judging by the sales figures. And if they are showing a dip, it can recover just a quickly as the fall. It is a very fluid market.
     
  18. RadioRaiders

    RadioRaiders RF Black-Belt
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    There is a total of 25Mhz for the 850 band and 60Mhz for the 1900 band (that's TOTAL, to be split among ALL operators):

    RadioRaiders GSM Frequency Bands
    RadioRaiders UMTS Frequency

    So that's a total of 25+60=85Mhz for all 850/1900 operators in the USA to share (GSM, CDMA and 3G).

    In Europe theres 35Mhz in the 900 band and 75Mhz in the 1800 band for a total of 110Mhz for GSM. Then the 2100 band has 55Mhz of spectrum, dedicated only for 3G.

    ...do you see the spectrum crunch in the USA a little better now? :browani:
     
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  19. M in LA

    M in LA Mobile 28 Years Plus
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    To me it's all the press about the iPhone's success contributing to the problems for AT&T that's the problem.

    AT&T may be having capacity issues in the big 2 markets, but I've heard friends whine about Sprint, T-Mobile, and Verizon as well. NONE of them are perfect in the L.A. area.

    Since I've had practically all of them (Nextel, as part of Sprint). I've had small issues with each of them, but nothing severe.

    The iPhone's phenomenal success has made things interesting for AT&T (a double-edged sword), it's brought them millions of new customers at the same time pushing them to keep their network up to the task. Let's just say it's been a big challenge for them.

    I'm not too keen slapping AT&T across the face for the issues they're having, as ALL the carriers have issues (they're just not making the news as much as AT&T is).

    I don't see AT&T's brand suffering. Sprint's the one trying to rebuild their brand. I think it's improved considerably, but it still has a way to go. AT&T is nowhere near the level Sprint's at.

    This is just my humble opinion, though...:)
     
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  20. bobolito

    bobolito Diamond Senior Member
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    It can go both ways, but I think this is more AT&T's fault than Apple's. Let's not forget that the iPhone is not the all-mighty when it comes to RF performance. The network has to essentially "overperform" the average so that the iPhone behaves satisfactorily. I know when I go in and out of the subway sometimes my iPhone takes literally MINUTES to regain service. Sometimes I am forced to cycle Airplane mode in order to force the iPhone to find the signal. So who's problem is that? the network or the phone? Many times I am in places where I know there is a strong 3G signal, but for some reason the iPhone insists on locking to a weak EDGE signal. That issue used to happen more frequently when the iPhone 3G first came out (firmware 2.0), then they fixed that issue with 2.1 but it seems to have come back after firmware 3.0 came out. I know I've been driving through places where Motorolas and Nokias don't drop calls, but the iPhone drops it without failing. Also, there are times when Pandora fails to play music saying that it can't connect to the network when I am looking at the signal indicating full bars, and then when I open my email it says it can't connect to the server. So I power cycle the iPhone and the problem goes away, Pandora starts playing just fine and email starts to work great . So was that a network problem or an iPhone problem? But you see, nobody wants to talk about these issues anymore since all the focus is now on AT&T's "poor" network. I'd like to see Sprint, T-Mobile or Verizon handle all the traffic iPhones are generating to see if they are going to perform as good as they are without the iPhone. The iPhone is the best mobile device ever created, but let's not forget it is not trouble free either!


    I agree with that. NJ performs very well compared to NYC. And then if we go to CT and Boston it's even better. I have some dropped calls but nothing major. But like I stated earlier, other phones don't drop calls where the iPhone will. I think it is safe to say that perhaps the iPhone is less tolerant to slight network problems where the other phones are able to deal with those small issues without dropping calls.

    That being said, I've started to notice improvement. I haven't dropped calls in a couple of weeks now in the same places where my iPhone used to drop them.

    That's 100% true. If they had not underestimated demand, they would've been more prepared and ahead of time. Let's not forget that Apple also had its share of problems when MobileMe came out, the constant downtimes, and let's not forget the nightmares of online iTunes activation. Those were failures of Apple as well.

    Oh yes, definitely! My iPhone would download data out of the blue for no apparent reason. So it's a scary device to take if you're going to be roaming overseas. Turning off data roaming is a great feature because even if you're not using it, the iPhone begins to transfer data inexplicably. I've seen in my bill that sometimes my iPhone would make large data transfers at 2am or 3am when I am sleeping.
     
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  21. RadioRaiders

    RadioRaiders RF Black-Belt
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    Don't pay any attention to that, it's all perfectly normal.

    [​IMG]
     
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  22. budney

    budney Resident Headbanger
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    WOW! That is just insane, their is no reason to have a "always on" connection. What a simple fix for AT&T. :)
     
  23. mframe

    mframe Senior Member
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    I thought there was about 120 Mhz available in the PCS band (30 Mhz each in blocks A,B,C, and 10 Mhz each in blocks D,E,F).
     
  24. viewfly

    viewfly Mobile RF Advisor
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    The 'always on' is not just a feature for iphones; most phones do this, but some give the option out to be off until needed. However this does slow down the connect times however, since every time you wish to check the weather, it needs to reconnect. In general, people would not like that. So BB do it, and so did my Nokia.

    For example my Nokia 6230 or 6131, dumb phone, had an option to be off, or off until needed, or always on. The difference was that you would see the E for edge without a 'square' around it. This would indicate that Edge was available, but you were not connected. Normally, I turned it on always since it made a faster connection.

    Same would be desired it you are pushing email etc. You would want the connection on. In the case of the iPhone, the 3G symbol is really telling you that the connection is made. When I am in Japan, which uses 3G for voice, I normally have data roaming off. So the 3G would be gone, but clearly I was on 3G voice.

    Not so insane, being always on is not clogging the network really. Active use of data would be however.
     
  25. RadioRaiders

    RadioRaiders RF Black-Belt
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    True, good observation. But when referring to FDD (ie: "paired bands") the same amount of spectrum is allocated for up and down links, but you only refer to the spectrum in terms of downlink. Eg: 3G is always referred to as a 5Mhz carrier, but it's actually 5Mhz downlink and 5Mhz uplink.

    In the PCS block, from 1850-1910 is the transmission of the phone to the tower. Then there's a 20Mhz gaurd band, and then from 1930-1990 is the transmission of the tower to the phone. So even tho it is 120Mhz total being used (up and down links), it's only referred to as 60Mhz

    wireless.fcc.gov/auctions/data/bandplans/pcsband.pdf
     
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  26. Matt

    Matt Twin girls!
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    OK, but couldn't any carrier bid on 1700/2100? Did AT&T choose not to? I'm sure they could have afforded to. T-Mobile had to, since they don't own any at 850 (at the time, maybe they now have a little via Suncom), and were all 1900, and were short there anyway for basic 2G services in some areas.
     
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  27. RadioRaiders

    RadioRaiders RF Black-Belt
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    AT&T is rolling out LTE on 700Mhz. That will help solve alot of their spectrum issues.

    They also have some 1700 licenses, but I'm not sure what they are doing with them. The 700Mhz is the more preferred band tho, since less sites are needed compared to 1700.
     
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  28. scotsboyuk

    scotsboyuk Senior Member
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    Quite an interesting thread. Here in the UK there is a similar situation. O2 won the exclusive contract for the iPhone in the UK and it has certainly brought them great benefits e.g. many more customers, However, as someone said above, it has been a double edged sword.

    When the 2G iPhone launched O2 had to build an EDGE network from scratch. That diverted resources from their 3G network and the result was a rather shabby second rate EDGE network. Because of the diversion of resources O2 now lags behind the other British networks in terms of 3G coverage, indeed at one point there was talk of an investigation because O2 might not have met the government's mandate of 80% 3G coverage in time.

    The volume of data being used on O2's network appears to be another problem. There have been a number of outages and downtime.

    O2 have also come in for a lot of criticism over their pricing.

    All in all many customers are looking forward to Orange and Vodafone getting the iPhone and that will probably be at the expense of O2.
     
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  29. Fire14

    Fire14 Easy,Cheap & Sleazy
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    It's interesting to see the issues are not just with AT&T & the iPhone and makes you have to look at the iPhone being the main issue here vs just the network. It seems the carriers would have been better off where the iPhone was released to more then one carrier for less strains on the networks, but guess it all comes down to money & now the carriers have to spend more to try to get back a better reputation over 1 phone.
     
  30. scotsboyuk

    scotsboyuk Senior Member
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    Yes I think that's a fair summation. Whatever one's opinion of the iPhone it created a lot of interest and has sold remarkably well. It has also seen a huge increase in data usage from customers and to be honest I don't think there are many networks around the world (maybe the likes of DoCoMo) that can really handle the huge traffic loads pretty much seamlessly.

    It's like the Golden Apple of Discord (I've been dying to make that pun/analogy!). The prize had the networks competing, but ultimately it seems to be something of a poisoned apple for them.
     
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