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AT&T Network Struggling In iPhone-Dense Urban Areas

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MMS is finally coming to the iPhone in two and a half weeks! Yaaay! Wait, iPhone users, why are you still sad? What's wrong? What are you doing with that AT&T voodoo doll?

iPhones are amazing, data-gobbling machines, and AT&T is having a hard time keeping up with the demand for delicious data, leading to terrible reception in some areas--not due to concrete walls or distant towers, but because there are so darn many people using their tiny data-gobbling machines at the same time in close proximity. The problem is particularly bad in people- and iPhone-dense major metropolitan areas.

"It's been a challenging year for us," said John Donovan, the chief technology officer of AT&T. "Overnight we're seeing a radical shift in how people are using their phones," he said. "There's just no parallel for the demand."

AT&T says that the majority of the nearly $18 billion it will spend this year on its networks will be diverted into upgrades and expansions to meet the surging demands on the 3G network. The company intends to erect an additional 2,100 cell towers to fill out patchy coverage, upgrade existing cell sites by adding fiber optic connectivity to deliver data faster and add other technology to provide stronger cell signals.

AT&T is planning massive upgrades to their network over the next year, but their exclusive rights to sell the iPhone could also be over by then. Then what?

Customers Angered as iPhones Overload AT&T [NY Times]
Big City, Big Troubles [NY Times]

(Photo: milesdeelite)

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122
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I haven't gotten voice mail indicators reliably since May. I rely on the recent call list these days -- everyone knows not to bother leaving a message since I won't get the message at best for three days. Everyone I know who has an iPhone is in pretty much the same boat, whether they are Edge or 3G.

(San Jose, not jailbroken.)

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thank god I didn't get an iPhone yet

I mainly didn't want to get one because I also have to get a voice plan. I was about to suck it up and get it but now with lack of MMS for another month (well 20 days) and AT&T having big network issues I'd rather wait for the exclusivity to end next year

hopefully "America's largest 3G network" will be able to handle it better

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We finally got 3G last week, and I think it honestly fixed all of my problems.

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@Syrenia: I had a similar issue when I was in New York. My phone never rang and then I got the voicemail about 3 hours later from a friend who lived there asking about getting together about an hour before I knew I had a voicemail. Oh well.

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@AppleAlex: I haven't missed MMS, and I like the iPhone better than any phone or PDA I've ever had. I just wish that they'd get the basics working reliably.

I've been lusting after a Pre (tactile keyboard, task switching), but other than the ETF, what's kept me from jumping ship is the lack of visual voicemail. Sweet, sweet irony...

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@Syrenia: I've been having this same issue too with AT&T, and I don't even have an iPhone!

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These are probably all terrible ideas, but I'll toss them out there for discussion anyway.

1. Create a lower-priced EDGE/GPRS-only plan ($ 10/mo less would work). EDGE/GPRS takes less bandwidth, thus buying some capacity. Patience pays. :)
2. Make new iPhone users get into a queue while they upgrade their capacity. The queue's length depends on service area.
3. Those who exceed their 5GB quotas get dropped to EDGE for the rest of the billing cycle.

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What happens then? Then AT&T's revenues go in the crapper. AT&T lives and dies by the iPhone. According to AT&T's own figures, the iPhone represents about 2/3 of their smartphone revenue. However, upon closer examination one realizes that AT&T's definition of "smartphone" includes any phone that includes a QWRTY keyboard, so the actual number is really much higher.

Personally, I was with Verizon for years and switched to AT&T to get the iPhone. It's like I traveled back in time; I drop calls like it's 1996. Absolutely horrible service. I refrained from upgrading to the 3GS this year so I will free and clear to jump ship once Verizon gets the iPhone.

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@dasunst3r: Or allow more than one cellular company the ability to sell the device.

I understand that a hardware revision would be required for them to allow it on Sprint and Verizon but not T-Mobile. Maybe that would help if it was allow natively on the T-Mobile network and not only through jail-breaking.

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AT&T decided to market itself based on "glitz" rather than performance. As long as they're the sole vendor for the precious iPhone, they have a steady stream of buyers willing to lock themselves into 2-year-&-maybe-longer contracts. They don't have to offer a good network, heck, they don't even have to ensure they have capacity to handle anything. As long as they sell the Jesus phone and as long as people are dumb enough to get them just because they're the Jesus phone, AT&T doesn't even have to do anything. It's free money to them.

When iPhone exclusivity runs out, only then do they have to worry ... but not for a while, since over the past 3 years of exclusivity they will have locked millions of buyers into long-term contracts. So even after that, AT&T will STILL not have to improve their network substantially in order to make money.

All I can say is that the iPhone cult created this monster. Those who still worship at its altars, will just have to live with the mess that THEY created by being SO EAGER to buy their precious and sacred iPhones that they provided AT&T with ZERO incentive to actually be any good. The market is working EXACTLY as markets are intended to work ... AT&T is laughing all the way to the bank, and those holding iPhones who are grumbling over the poor service, can't really blame anyone else for it.

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Overnight we're seeing a radical shift in how people are using their phones… There's just no parallel for the demand.

Lemme translate that for you:
Other rich phones have such painful, poorly-designed interfaces that their owners rarely use features they pay $120/mo for. Apple doing it correctly means more of these customers use these features they pay for, which we're struggling to adjust to.

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@Syrenia: who leaves voicemails anyways? when I get the answering machine I just hang up

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The best phone on the worst network.

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Let me guess. AT&T will still hold owners with poor phone reception to their 2-year contracts.

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@Syrenia: The ETF is now prorated and depends on how much longer you have on your contract.

It might be worth looking into.

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First thing that will happen is Apple getting even more revenue: neither Verizon's nor T-Mobile's nor Sprint's 3G networks is compatible with AT&T's network so people will have to buy new devices when they switch.

iPhone on Verizon: "Oh, I didn't know my phone wouldn't work outside of the USA." "OMFG! This service is so expensive!"

iPhone on T-Mobile: "Reception! What reception?" "3G! What 3G?" "My phone doesn't work anywhere, but at least it looks nice and the service is cheap." Let alone T-Mobile's network crashing just like AT&T.

iPhone on Sprint: See iPhone on T-Mobile.

People, stop feeding yourself illusions that iPhone will work better on other carriers - they are all out there to make money, not deliver superb service to customers. Mobile operators improve service only when they start losing revenue/subscribers.

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@dasunst3r:

Those who exceed their 5GB quotas get dropped to EDGE for the rest of the billing cycle.


That is harsh, but fair. It would end abuse by folks that are tethering their iPhones and downloading torrents several hours per day.

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I think enough people will stick with AT&T even when they can take the iPhone to another carrier, especially if they just activated.

Also, once the iPhone goes to other carriers, AT&T will be forced to offer competitive prices for phones/rates, which they haven't really had to do for iPhone yet since most people don't want to jailbreak their iPhones, so they stick with AT&T.

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AT&T reliability in the Bay Area sucks. Someone next to me can call me and it'll go straight to VM half the time. I don't get SMS's when people say they send them... 80% of my calls get dropped. It's beyond ridiculous.

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The people who shelled out the money for the shiny new toy should be refunded all their money and be able to return their phones without any penalty.

A contract should cut both ways. If a company cannot provide the promised services, then they should face sizable penalties that come directly out of the company's profits (and absolutely no raising of prices to cover the cost of the penalties).

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@starbreiz: I don't get dropped calls all that often, probably because I don't have good enough reception to begin with!

But I have the same issues with calls going straight to VM, even on the rare occasions I have reception. Late texts, too.

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I went to a football game yesterday and the entire AT&T data network (3G and Edge) in the stadium and in the neighborhood surrounding it was completely inaccessible for at least 4 hours. I don't know if AT&T purposely shut it down or if it was just because of all the people in the area, but I couldn't do anything on my iPhone other than make calls and text until the game was over. My brother's Blackberry on AT&T was also affected so I know it just wasn't my phone.

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@denb: For what it's worth, I'm currently using my iPhone on T-Mobile. Reception is great where I am, plus service is indeed cheaper...but YMMV.

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I've been having this problem with AT&T too, and I've got an Nokia E51.

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Too effing bad. The iPhone has been out for two years so they've had more than enough time to remedy the problems. It's time for a class action lawsuit - I'm tired of paying full price for half the service.

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@mnicolson: Enjoy your 30 free minutes when that lawsuit concludes in two years.

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@The Queen of Everything:
Lucky! We still don't have 3G here in VT, and anywhere outside of the largest towns service coverage is spotty at best, but more often non-existent. Supposedly we'll get 3G by the end of the year but I'm not holding my breath...

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@Syrenia: Verizon has the Pre and has visual voicemail. I refuse to pay the $4.99/month or whatever they are charging, though.

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From another article I found:

"While AT&T's exclusive deal saddened those who didn't want to switch carriers but still wanted an iPhone, apparently Verizon was originally offered the gadget and declined."

I wonder if the person at Verizon that made that call (no pun intended) got kicked to the curb after they found out the huge mistake they made or if Verizon knew they were working on upgrading their infrastructure and the opportunity would present itself again (ie: betting on AT&T falling flat on its face).

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@dasunst3r: About idea #2: Do you own an iPhone already? If you don't, I can't imagine you would willingly pay for an iPhone and then allow yourself to be treated like a second-rate customer while paying the same prices as customers who came before you.

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@davebg5: Verizon, just like other major carriers, is better in some areas than in others. If you travel a lot, it's my understanding that Verizon truly does have the best national system, however. But if you stick mostly to one area, there may be a carrier that performs better for you than Verizon does in that location. I have Verizon and drop calls all the time in my new location. The only reason I don't drop Verizon is that I don't plan to live in this "dead zone" for much longer. I'm planning to get the Pre. That, and my iPod Touch, will satisfy my iPhone envy.

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@Syrenia: Switch to youmail, its free and they can alert you to your voicemail via text or email or both.
It may not be visual voicemail, but if yours isn't working then it really doesn't matter!

youmail.com

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@denb: I was going to say the same thing as supercereal, I know a few people using iPhones on t-mobile in LA and they love it. [and these are jailbroken phones, not even "designed" to work on T-Mo]
WAY cheaper than ATT and no issues.
I really think people think of tmobile about 7 years ago when they talk about their issues.
I have a blackberry and get amazing reception, rarely drop calls and the friends I know with 3g capable phones say their internet speed is very fast.
I'm a huge tmobile fan.

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@PsiCop: Oh, so instead of blaming the company for biting off more than it can chew, you'd rather blame consumer "sheep" who happened to want to buy a quality product with their hard-earned money?

YOU may not like Apple, and that is just fine. But for one second, could you maybe consider that people are loyal to Apple because they consider their products amazing/reliable/appropriate for their needs/user-friendly? I waited over a year and half before I bought the iPhone and I'm glad I have one. It is probably one of the most amazing devices I've ever purchased, and apparently millions of others feel that way, as well.

Yes, AT&T sucks balls, and I'd be thrilled to have more choice, but really? It's not a character judgement. Personally, I wish we had the same regulations as Europe, where people seem to have more choice in the matter, but until then, I'm not terribly miserable. And I'm not a sheep, either. I just happen to enjoy using the Apple products of my choosing, not because I am a cultist who doesn't do my research before making a purchase, but because it's what I prefer. Is that so hard to accept?

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@SexCpotatoes: Most cell contracts I've ever seen have an opt-out clause, allowing a refund for 30 days or so after the activation of service if coverage is poor.

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@outlulz: I had a similar experience at Wrigley Field in Chicago. It worked sometimes, but even "3G" service was crawling.

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@veronykah: I'd highly recommend Google Voice (voice.google.com) over Youmail.

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@bananaballs: Actually I do like Apple. I've sung the praises of my iMac (I'm typing on it right now!) for a long time. I also love my 4-year-old iBook. And I've had an iPod for c. 6 years now. As a rule — and often moreso than other companies — Apple makes good products.

I was not bashing Apple. I was, however, bashing the people that have made the iPhone into the focus of what is, in reality, an economic and technological cult. When you raise a consumer product ... ANY product, it doesn't have to be Apple's, or even anything electronic ... to the level of sanctity, you inevitably disincentivize the people that sell it, from providing good service in the process.

I didn't make that rule. It's been in effect for a long time. Another example of commodity-mania run amok is the "tulip craze" that flashed through the Netherlands in the 17th century. It led to economic ruin for many ... and it happened simply because tulips became prized in an irrational and absurd way.

The Dutch several centuries ago discovered — the hard way — that you cannot turn something into a hyperprized and sacred commodity, without there being an economic and societal cost for doing so. There are consequences, and they are unavoidable. In the same way, you can't have millions of iPhone worshippers, and not cause prices to remain high while service plummets to new lows. The latter is a natural and expected consequence of the former.

Go ahead and love your iPhone ... I wish you well ... but when you and other iPhone owners make a cult out of your phone-of-choice, and thus disincentivize AT&T from providing you good service, none of you ought to be surprised at it.

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@PsiCop: I'm on that T-Mobile party bus. So that other guy IS a sheep. Say "bawww" and pay three times what I pay to BS&T, you lazy conformist :p

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@WorldHarmony: If Verizon had the Pre I would own one. Unfortunately it's not coming until next year. By then the Eos should hit as well

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I can't wait until AT&T goes out of business. Seriously, I HATE them with an unnatural passion. When I had my iPhone with them, they tried to force me out of my $50 a month Go-Phone plan and onto a $120+ "iPhone approved" plan. They thought they could force me, but instead I just did the logical thing, I went to T-Mobile. T-Mobile seems very happy to accept my money, not something that can be said for BS&T.
AT&T, I'm starting to think you don't actually want money, because you're trying to get rid of my sister, too.

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@ZeGoggles: If I recall correctly, Verizon didn't like the idea of allowing Apple to have sole control over software and distribution. While the software aspect hasn't changed, AT&T has definitely taken over most of the distribution from Apple.

Also, keep in mind that at the time smartphones were not the market they are now. I don't think many people would have foreseen people willing to spend $600 on a phone at that point.

I think Verizon made the right long-term move, to be honest. They've been able to expand their network without the constant headaches that AT&T has had. Not only that, but they're further along on LTE than AT&T. The exclusivity ends next year, and Apple will no doubt be chomping at the bit to put out an LTE iPhone. Considering it is now possible to do a seamless handoff from LTE to EVDO, I wouldn't doubt a Verizon iPhone by the end of next year, if not sooner

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@PsiCop: Ok, fair enough. I don't disagree that AT&T has been disicentivized, but I think it's a problem with the system and not the consumer. AT&T should never have been allowed to be the only one to carry the iPhone, and I'm glad that their contract with Apple will be ending. That means more choice for the consumer, as it should have been from the start. They've clearly been taking advantage of customer interest in the phone, but I believe that it's a very short-sighted thing to do, as their reputation has been damaged, and I'm sure they'll be scrambling to keep their existing customers in a year or two.

I didn't read the article you link to, but it seems like an interesting analogy. One thing I will say is that I think the iPhone has been good, even for non-iPhone users. Other companies are scrambling to keep up, which means more choice for EVERYONE, and the technologies advancing quicker.

But until other phones have the ease of use, prolific app store, and browsing capabilities of the Jesus phone, I'll be waiting patiently.

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Try Google Voice...

...OOOPS!. Strike that...

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I can not identify with any of these comments.

Here in the Cleveland, OH area, AT&T is far and away the best cell phone carrier. They are rivaled only by Verizon, and between the two it's pretty much a wash.

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I can not identify with any of these comments.

Here in the Cleveland, OH area, AT&T is far and away the best cell phone carrier. They are rivaled only by Verizon, and between the two it's pretty much a wash.

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@WorldHarmony: Actually, no. I own a BlackBerry Curve 8320 on T-Mobile. By queue, I mean something similar to a waiting list for {insert really popular car here}.

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@Syrenia: I'm on the peninsula, and work in SF, and i've never had the problem you describe. I get my voicemails right after the person calls. If I were you, I'd be on AT&T to fix your account or phone or whatever.