Since the news is still somewhat slow today due to the holiday season, let’s talk about something I initially didn’t want to talk about at all: it was widely reported today that AT&T stopped online sales of the iPhone in New York City. AT&T gave a number of different reasons as to why, before resuming online sales later during the day. Storm, meet teacup.
It takes a bit of digging to get to the original source of the story, but it was The Consumerist who first reported on, err, reports from its readers that you could no longer order an iPhone online in NYC. The Consumerist contacted AT&T, and they were told that “the phone is not offered […] because New York is not ready for the iPhone”. They added that New York does not have “enough towers to handle the phone”.
It is no secret that iPhone owners tend to consume more mobile data than other smartphone users (although Android owners probably aren’t lagging behind), and with the iPhone being more popular than god, the poor AT&T network can’t seem to handle the load. Since New York City has a population of 8.3 million in a tightly packed space, you can see how AT&T’s network has to bear quite a load.
AT&T, by the way, changed its tune later during the day, when the news had hit the blogosphere hard. To CNet, AT&T stated that this was a routine thing. “We periodically modify our promotions and distribution channels,” said Fletcher Cook, an AT&T spokesman, to CNet.
Just in case you can’t feel the PR panic going through AT&T at that point, yet another AT&T person, a customer support representative, talked to Gearlog, and stated something completely different. He explained online sales were halted due to “increased fraudulent activity in that area when ordering the iPhone”.
All is well, though, as AT&T has already resumed online sales of the iPhone in NYC. After a day of reading nothing but rehashes of this story, with update after update, it’s good to hear the diversely unified people of New York City can once again be good little consumers. They had me seriously worried there for a second.
I want a meat teacup for my birthday!
Make sure it’s 0xdeadbeef, then
It seems like AT&T is really not getting it… Upgrade your network to handle the extra traffic.
Congratulations you are the key provider for one of the best selling smart phones on the market (as well proving service for the other top ones as well) well guess what, when you business grows you need to improve your infrastructure… Demand for the services is not expected to decrease. So it seems like rather basic rule… Expand your services… Ok you didn’t expect so much demand, well you will just need to push faster or you will loose it.
If you take too long next contract cycle Apple will drop you (Apple has dropped Motorola for IBM, then to Intel, they are really good at making big changes and marketing their customers to go for them). Other smart phone on different markets are coming up. I looked at the Droid it is decent.
Verizon isn’t playing nice ball, they are beating you up any chance they get.
Guess what AT&T you need to get your butt in gear and upgrade. It doesn’t take an MBA (although I am nearly one) to tell you that.
I find myself in a weird position – defending AT&T, but look at it this way:
1. I was a long-time customer of Verizon. I got just as many, if not more dropped calls with them as with AT&T where I am. And 3G is fine here in this part of Rural NY State.
2. Try reading Telephony Online. You’ll see that AT&T has spent many millions on upgrades. They can’t upgrade every place at the same time.
3. Unless Apple changes it’s chipset, which is locked to GSM, you won’t see the iPhone on Verizon at least until LTE becomes the “standard”.
4. OK, you have my permission to go buy it.
5. You are obviously wasting your time with further schooling – go directly to AT&T and apply for the CEO position. No, wait – go to Verizon, so you can bankrupt them by overcommitting their budget to upgrades and expansion, driving down their bottom line, and alienating their investors.
Must be nice. AT&T doesn’t even have telephone coverage where I am, to say nothing about 3G D:
They are upgrading their network in six markets during 2009 and 25 largest during 2010 with more backhaul capacity and HSPA standard.
I don’t think they are in any risk of loosing their position. There are just a few GSM/WCDMA/HSPA carriers rest use some kind of CDMA network. And both large US GSM carrier are upgrading to the latest HSPA+ standard.
I think the best way is to limit, their data use by limiting their speed. That would solve the problem.
@FurryOne
LTE will need maybe 2-3 years before it goes mainstream, for now their is just ONE commercial LTE network in the world and that’s TeliaSoneras Stockholm and Oslo network. And chipset’s are still a problem there are so few of them, and they get used to build USB modems. Smartphones with LTE will probably show up around 2012.
In latin countries (at least in spanish speaking countries), Dec 28th is said to be “Innocent’s day”. It’s like an April Fool’s day. Could that be the cause? 🙂
Apple/AT&T can get away with screwing around with developers because the users are the ones with the money, and power users because there are few of them. If they start messing with regular customers there WILL be blood.
Maybe that’s the wake-up call Apple needs.
Are you just Trolling, or do you have a rational point to make?
It is no secret that iPhone owners tend to consume more mobile data than other smartphone users (although Android owners probably aren’t lagging behind), and with the iPhone being more popular than god, the poor AT&T network can’t seem to handle the load. Since New York City has a population of 8.3 million in a tightly packed space, you can see how AT&T’s network has to bear quite a load.
My understanding of cellular technology is that it can be expanded infinitely. If you have more users, you add more base stations. If AT&T has insufficient cell phone towers, then expect dropped calls. So, what they are admitting to here is that they haven’t kept up with demand due to underinvestment.