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  • AT&T Needs $5 Billion to Catch Up to Verizon: Analyst


    AT&T would need to spend about $5 billion US on its wireless network to catch up with the coverage offered by Verizon Wireless, a financial research analyst said Tuesday, as reported by PCWorld.

    Gerard Hallaren, director of research at TownHall Investment Research, said that AT&T spent only about $21.6 billion US from 2006 through September 2009 compared with $25.4 billion for Verizon Wireless over the same time period. Even when looked at on a per-subscriber basis, Verizon has spent far more: $353 per subscriber compared with $308 for AT&T, Hallaren said. Verizon Wireless has 89 million subscribers compared to AT&T's 82.5 million.

    That failure to invest in its infrastructure has been the major cause of AT&T's poor network performance, the analyst says. Although AT&T's wireless business is its top money maker - its "absolute engine of profitability," as Hallaren puts it, bringing in 57% of its income - the majority of the carrier's spending goes towards its wired infrastructure. It put major investment into the U-Verse internet/television/telephony service, and Hallaren says his analysis is that AT&T will probably not get a good return on that investment. U-Verse brings fiber into neighborhoods and uses copper for the connection to individual homes, while Verizon's FiOS brings fiber all the way to the home and delivers better performance.

    Verizon, the number one carrier in the US, and AT&T, the number two, have been in a heated ad campaign over the last year, with AT&T suffering from poor customer perception of their services. AT&T's wireless service came in last in terms of customer satisfaction in a Consumer Reports survey last month.

    image via Gizmodo
    This article was originally published in forum thread: AT&T Needs $5 Billion to Catch Up to Verizon: Analyst started by Paul Daniel Ash View original post
    Comments 32 Comments
    1. kraziebone's Avatar
      kraziebone -
      "AT&T suffering from poor customer perception of their services"

      It's not the perception of AT&T's services that is hurting AT&T, it's their actual services.
    1. idesideratum's Avatar
      idesideratum -
      I have had so many dropped calls and "failed calls" on my iPhone -- it is ridiculous to even try and explain. And I live in a major suburb.. Huge city. Their service is terrible.. I would switch to Verizon in a heartbeat if it had the iPhone.. The only thing that makes me hessitant is that you can't browse the net and be on the phone at the same time -- you'd be surprised how often you find yourself doing this. Still, I can't wait to have that option.
    1. StealthBravo's Avatar
      StealthBravo -
      And its not just browsing the net, its a total lack of data services during a call
    1. KingShorty's Avatar
      KingShorty -
      That's the reason why I made the jump from at&t to Verizon. I'm enjoying my Droid but I still miss my iPhone.
    1. jayson9's Avatar
      jayson9 -
      Can you say ION (as in Sprint)? Sure sounds like AT&T is on the right path! But lets not forget about Apple....... They did partner with AT&T to market/sell their phone (along with a new version every year), didn't they?

      It's a great business model for AT&T and Apple: One is overselling and marketing a product with new bells and whistles, and the other is taking their time to create the capacity to use it (while still getting the same amount of complaints on its main function as a phone). And both are still making money off the sheep who think its actually going to get better if they stay, and/or buy the latest product. Brilliant!
    1. Melech518's Avatar
      Melech518 -
      And the customer service blows boat people!
    1. k.nitsua's Avatar
      k.nitsua -
      Quote Originally Posted by jayson9 View Post
      Can you say ION (as in Sprint)? Sure sounds like AT&T is on the right path! But lets not forget about Apple....... They did partner with AT&T to market/sell their phone (along with a new version every year), didn't they?

      It's a great business model for AT&T and Apple: One is overselling and marketing a product with new bells and whistles, and the other is taking their time to create the capacity to use it (while still getting the same amount of complaints on its main function as a phone). And both are still making money off the sheep who think its actually going to get better if they stay, and/or buy the latest product. Brilliant!
      baaaaaaaa baaaaaaa

      Go ATTTTTTTTT &TTTTTTTTTTTT

      [/end sheep impersonation]

      I want to go on Verizon, but every time I see those commercials on how they can't go online and make a phone call at the same time just strikes me as "WTF". I didn't believe them at first until I spoke with a Verizon customer. That stuff just seems standard to me now and YES, I've had multiple instances where I'm on the phone and had to look up a number on Safari.

      If Verizon fixes that... I'm sold... I'm f---ing sold.
    1. TooSlo's Avatar
      TooSlo -
      Quote Originally Posted by pauldanielash View Post
      ...That failure to invest in its infrastructure has been the major cause of AT&T's poor network performance, the analyst says...
    1. hollow0's Avatar
      hollow0 -
      That's a lot of money to be spending and not even work on your wireless network. That's sad. Even tmobile who has the smallest network is doing something About their connection speeds. C'mon AT&T get with the Program!
    1. bengo's Avatar
      bengo -
      Should have bought an iPod Touch instead. Pretty much same thing, except no radio.
    1. KingShorty's Avatar
      KingShorty -
      The call quality is amazing on Verizon. When I was with at&t I'd have to leave my phone in one area and take calls using my bluetooth. The minute I moved the phone the call quality would become spotty and eventually drop. With Verizon and the Droid, I'm talking/texting/surfing the web all day.

      The "not being able to surf while talking" issue hasn't been a hassle for me because either the person I'm talking to or myself has a computer in front of us. And, quite honestly, it's not something that even crossed my mind until I saw the commercials that at&t started airing that highlighted that feature. It's also something that I never did when I had my iPhone because I had EDGE disabled all the time.
    1. Melech518's Avatar
      Melech518 -
      Quote Originally Posted by ALL DAY View Post
      How original, another AT&T hate post on MMi.

      Another day, 6 more ****** news articles... Why do I even bother to check the frontpage anymore?
      What is with all the hate? I would think someone who has been around as long as you would know better than to make comments like that
    1. Pufferking's Avatar
      Pufferking -
      My friend has Verizon he is on his parents plan and they went down yesterday to upgrade all there phone's to the Motorola Droids and they got to talking to the manager and he told them they should wait to upgrade there phone's in June this year because Verizon well be getting a IPhone.

      We will see how this go's I hope Verizon well also get a IPhone along with at&t so allot of people will move to Verizon and not clog up at&t's network.
    1. ty22's Avatar
      ty22 -
      Sprint FTW!
    1. SuperVee3's Avatar
      SuperVee3 -
      i just swtiched to AT&T from T-Mobile in November and I'm happy with what I have. I was getting dropped calls and data loss a lot at first but that was blacksn0w's fault. after restoring and not doing blacksn0w now my iPhone 3GS is fine. i been comparing a lot with my friends from Verizon and T-Mobile and I been getting way faster 3G speeds.
    1. jaminmc's Avatar
      jaminmc -
      For People who have a lot of dropped calls on the Iphone, and have BlackSn0w installed, Blacksn0w can be the cause for a bunch of the dropped calls!!!!

      If you are on a call, and your phone uses a decent chunk of Data during the call it will drop the call!!! I have confirmed that it is a bug in BlackSn0w!

      Test it if you don't believe me. Place a call, and run mobile speed test. You will loose signal for 5 seconds, as your iphone drops Data and voice at the same time...

      So if your phone check the mail, and downloads an attachment, it will probably drop the call. Seems that minor data usage doesn't always interrupt the call/ signal.


      I still don't know if Geohot is even aware of the bug because of everyone complaining about a tethered jailbreak.
    1. Melech518's Avatar
      Melech518 -
      Quote Originally Posted by jaminmc View Post
      For People who have a lot of dropped calls on the Iphone, and have BlackSn0w installed, Blacksn0w can be the cause for a bunch of the dropped calls!!!!

      If you are on a call, and your phone uses a decent chunk of Data during the call it will drop the call!!! I have confirmed that it is a bug in BlackSn0w!

      Test it if you don't believe me. Place a call, and run mobile speed test. You will loose signal for 5 seconds, as your iphone drops Data and voice at the same time...

      So if your phone check the mail, and downloads an attachment, it will probably drop the call. Seems that minor data usage doesn't always interrupt the call/ signal.


      I still don't know if Geohot is even aware of the bug because of everyone complaining about a tethered jailbreak.
      You are wrong and experiencing an isolated incident!

      Quote Originally Posted by ALL DAY View Post
      Because all MMi's "news" is nowadays is either "AT&T is Bad" or "NEW RUMOR!!1!!11one!!1eleven".

      I understand there wasn't enough news before, but this is just ridiculous.

      And 'know better'? Speaking your mind isn't allowed now? I have hella love for MMi, but it took a mad turn for the worse a while back...
      I dont think there is anything wrong with this site. It is still the #1 iPhone forum in the world and full of helpful people and information. The new writers post the latest news out there. Whether we agree with the rumors or the articles does not mean it is not news. There are BS news stories I hear on NBC, Fox News, CNN, etc everyday, but I am not going to stop watching the news because of it. They are reporting whatever the latest information is and it is as simple as that. If you pay close attention, these article surface on other news sites first before they reach us. I hear almost every article on this forum being discussed on CNBC every single day.

      Let's just leave it at this. If you don't agree with the authors approach, then that is your right. If you don't agree with what the news is covering, that is your right as well. But please do not bash the site or the writers.
    1. mastuul's Avatar
      mastuul -
      Quote Originally Posted by SuperVee3 View Post
      i just swtiched to AT&T from T-Mobile in November and I'm happy with what I have. I was getting dropped calls and data loss a lot at first but that was blacksn0w's fault. after restoring and not doing blacksn0w now my iPhone 3GS is fine. i been comparing a lot with my friends from Verizon and T-Mobile and I been getting way faster 3G speeds.
      How did you get any 3G speeds on an iPhone using T-Mobile?
    1. Melech518's Avatar
      Melech518 -
      He's probably not using an iPhone on Tmo
    1. Riviera's Avatar
      Riviera -
      Quote Originally Posted by Pufferking View Post
      and they got to talking to the manager and he told them they should wait to upgrade there phone's in June this year because Verizon well be getting a IPhone.
      It is unlikely a (store) manager will tell his/her customers not to buy a product or to wait before spending their money, just because a new product is coming soon. A manager ought to clear up his inventory before the new products arrive.

      So I think your friend lied to you.