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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...
01-20-2010, 10:06 AM #1
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
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01-20-2010, 10:18 AM #2
"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.
01-20-2010, 10:33 AM #3
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.
01-20-2010, 10:57 AM #4
And its not just browsing the net, its a total lack of data services during a call
01-20-2010, 10:59 AM #5
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.
01-20-2010, 11:12 AM #6
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!
01-20-2010, 11:23 AM #7
01-20-2010, 12:20 PM #8
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.#eli7e revived me
01-20-2010, 12:54 PM #9
01-20-2010, 01:30 PM #10
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!
01-20-2010, 02:05 PM #11
Should have bought an iPod Touch instead. Pretty much same thing, except no radio.
01-20-2010, 02:13 PM #12
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.
01-20-2010, 03:03 PM #13
01-20-2010, 03:22 PM #14
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.
01-20-2010, 03:45 PM #15
01-20-2010, 04:07 PM #16
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.
01-20-2010, 04:52 PM #17
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.
01-20-2010, 07:53 PM #18
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.
01-20-2010, 08:45 PM #19
01-20-2010, 10:53 PM #20