Why AT&T can't keep up with iPhone data demand
As has been discussed here ad nauseum, AT&T's network has been stressed by the iPhone. Since the users of Apple's device tend to use the Internet more than owners of other smartphones, AT&T's data network gets bogged down during peak periods.
Now, BusinessWeek has an article that attempts to explain why, after more than two years, AT&T has been seemingly unable to keep up with the demand for bandwidth generated by the phone.
As writer Peter Burrows points out, the stakes are high:
The shortcomings leave AT&T under pressure to make its network iPhone-ready or risk losing its edge in smartphones. The company is almost sure to lose the exclusive partnership with Apple (AAPL), possibly as early as next year. That would open the door to AT&T losing millions of customers as iPhone owners depart to rivals such as Verizon Wireless. More important, AT&T would have wasted a golden opportunity to become the clear leader in the multibillion dollar market for wireless Web access. "Nobody is in the same boat we're in," says AT&T Chief Technology Officer John Donovan. "We're shaping the landscape for the whole industry, and I relish the opportunity to be the first to figure it out."
Odds are against AT&T. Many of its 60,000 cell towers need to be upgraded. That could cost billions of dollars, and AT&T has kept a lid on capital spending during the recession — though it has made spending shifts to accommodate skyrocketing iPhone traffic. Even if the funds were available now, the process could take years due to the hassle and time needed to win approval to erect new towers and to dig the ditches that hold fiber-optic lines capable of delivering data. And time is ticking. All carriers are moving to a much faster network standard called LTE that will begin being deployed in 2011. Once that transition has occurred, the telecom giant will be on a more level playing field.
Simply put, AT&T's network is so vast and the process of upgrading and adding equipment so complex (including getting approval to erect new towers and dig trenches for fiber-optic cable) that it's impossible for the telecom giant to move quickly. Yes, it's done what it can in adding capacity and switching on a new radio frequency that improves signals inside buildings. But is it enough?
The addition of the 850 MHz band has made a difference here in Houston, where I'm seeing much better signals indoors. In fact, my desk at the Houston Chronicle used to be a serious AT&T dead zone — I had to swivel my chair in a specific direction just to make a call — but now I get a solid four bars most of the time. And this is even after the downtown building has been swaddled in faux-marble aluminum siding, effectively turning it into a Faraday cage.
On the other hand, I heard via e-mail last week from an iPhone owner who can't make calls from inside his building at 1201 Louisiana unless he turns off his 3G service. He's had this problem with two different iPhones.
If you're an AT&T wireless subscriber with a smartphone (regardless of whether it's an iPhone) what's been your experience lately? Are things better or worse for you?
- By Dwight Silverman | Chron
I have had an AT&T account for over 3 years. I also upgraded my phone to an iPhone 3GS about 2 months after they first came out. I travel weekly in the US for my job and so have experience with AT&T’s network in a number of places. If I were able to rate AT&T’s overall network quality, it would very definitely get a failing grade.
Coverage is minimal. I live northwest of Houston. Driving on the smaller highways between my house and the beltway, there are easily at least three dead spots along my 20 mile trip (resulting in many a dropped call). In Philadelphia (I usually travel there at least every other week), there are dead spots in the interstates (more dropped calls). In West Texas along I-10 (past San Antonio) one can drive for an hour without a signal.
Frequently in airports I get 5 bars on the AT&T 3G signal strength, yet no data will transfer at all. I end up having to turn the 3G off (i.e. switch to the EDGE network) in order to check my email. In many places (including my home), the 3G signal strength varies up and down (from zero bars to 4 or 5 and then back down again). Not sure if this is AT&T’s fault or Apple’s, but I know my non-3G Sony-Ericsson phone never had that problem.
All in all AT&T may *technically* have the fastest 3G network in the US (maybe, in some remote location where no one uses it) but if we really had truth in advertising in the US, they would have to market their 3G network as marginal at best.
David M.
27 Aug 09 at 10:26 pm
Name the cell companies you would have picked for exclusive iphone use.
Remember… they must work worldwide.
and
The cell company must be willing to pay Apple a HUGE some of money.
If you were Apple… you would have also picked the only choice: AT&T
… for now.
Susan S
28 Aug 09 at 3:06 pm
I have no issues with signals in the areas in which I travel. My issues with AT&T have to do with their inability to rollout MMS and tethering when 3.0 was released. AT&T is retarding the iPhone experience. What has the company been doing with the revenue it has received from raping its customers who have an iPhone? $30 per month for data on a poor network? Please! We should all receive a 50% rebate on the data plan since the iPhones inception.
This just goes to show that a device like the iPhone needs to be on multiple carriers to reduce network strains. The same thing would be happening on Verizon's network if they were the exclusive carrier.
Anonymous
28 Aug 09 at 3:34 pm
I work in Irvine, California and this is one of the few cities where I get full bars on my iPhone 2G. I recent found out that the number of bars don't guarantee a good signal. I call my son often and on occasion, I get such a bad connection that it sounds like I hopped on someones dial-up connection…terrible. I have to end the call and call again. This was not a problem two years ago when I got the iPhone. Hmmmm, odd that it happens during peak times. As far as AT&Ts 3G goes. It's a joke. Just another service that milks the customer for more money and provides at best random very low quality service. I know this for fact as my brother has the new 3GS phone and he can't get good 3G connection at home or at work. He has to stand in the middle of the street to stay on 3G. It does pickup up the EDGE network. So he's paying extra for the "If you are lucky, you get 3G" plan. He also tells me that he regrets upgrading to the 3G model because of AT&T bad service. He loves the phone but hates the service. It's like buying an expensive and very fast car and you can only get premium fuel at random locations. That's if they have it. I have four lines with AT&T and will be the first to pay to drop them as soon as Apple open up the iPhone to other providers. Yes, AT&T will be losing $180.00 a month from me if they don't get their act together.
Open you eyes AT&T. Your iPhone customers eyes are open and can't wait to drop your service in a heartbeat if Apple opens up the iPhone. The iPhone is the only device keeping my brother, friends, family and myself from going to another service provider.
Let's wait and see. You can only screw the customer for so long.
PS The iPhone's Wi-Fi is helping it a great deal. If it wasn't for Wi-Fi, a lot of folks including myself would have dropped the iPhone a long time ago because of AT&Ts poor service.
E320
28 Aug 09 at 6:24 pm
The 3G network that At&t owns is just fine. It so good that At&t has been contracted to be the new data provider of a new e-book. The data going through that fiber cable must be huge from all those devices. The problem more that likely is other factors like downloading a movie or huge file while driving through a rural town that doesn't have a strong wireless presence from any carrier. Most of you will be singing a different tune when you see China's network go down in flames because they tried to support the iphone. Other carriers can't compete. Verizon has blown there cash by building a completely new fiber network. They still don't have the coverage at&t has for the states. All at&t will need to do is continue building out the UMTS network and sit back while verizon realizes they have no more money.
pacovalaco
28 Aug 09 at 9:12 pm
I love the phone 3g but hate with a passion at&t's lousy service.
I can be in the middle of a business call and I get a "call failed" message. Calls drop all the time and the phone is on the slow edge network more than 3g. This happens all of the time.
I pay a lot more for lousy at&t service than I paid for superior verizon service because I really love the iphone. I won't think twice about leaving at&t when another carrier becomes available.
bebe
29 Aug 09 at 5:37 pm
I think the state of US carrier coverage was summed up lately with the article showing we are 15 years behind Korea as far as cell phone coverage and abilities – how embarrassing! Another example of american greed at it's finest. Kind of like new phones that come out with 3 mp cameras – enough already, dump your out-dated inventory and offer something current!
letsmotor
30 Aug 09 at 9:45 am