AT&T - Give With One Hand. Take Back With the Other?
Posted 10/09/2009 at 8:16am
| by J Keirn-Swanson
In what could possibly be a somewhat related tip-off that AT&T
might not be handing out goodies without hidden costs, AT&T's CEO
of Wireless, Ralph De La Vega recently suggested that the carrier might
have to implement "proper management" of their wireless users. What
precisely was meant by these comments remains to be seen, but the
suggestion that AT&T might need to control users' bandwidth access
appears implied.
While stating the eminently reasonable position "that the few cannot
crowd out the many,” De La Vega went on to cite AT&T research that
showed 3% of the carrier's customer use 40% of smartphone data. For
that 3%, one could reasonably believe that he was referring to iPhone
users. With a robust app store from which to choose, as well as access
to iTunes and Safari and email, the iPhone does have the greatest
number of access points to wireless bandwidth.
AT&T's bandwidth issues are an ongoing source of problems for the
company, suggesting that management were ill-prepared to take on the
handsets when they first signed up with Apple. The lack of tethering,
the absence of MMS, these are just the small symptoms of a company that
refused to invest appropriate resources into building up a sufficiently
stable and powerful 3G network and one without a satisfactory 4G
network ready to roll out in its place.
Regarding other matters related to wireless, the CEO went on to suggest
that no new regulations were necessary, a de rigueur position among
most executives. Of course, one could easily see the carrier's newfound
flexibility on the Skype/Vonage issue as the result of implied
regulatory pressure. At the same time, making such apps able to work on
the 3G network instead of keeping them corralled in WiFi, will only
exacerbate the lack of bandwidth issues De La Rega bemoans.
Exactly what AT&T's double-edged strategy might be is hard to quite
grasp in this instance, unless these are unrelated, one hand unaware of
what the other is doing issues. We have our doubts though and wonder if
opening up access to the 3G network to a small group of VoIP apps might not be a sacrifice play coming up.