The disparity in usage between smartphone users and other subscribers — and the stress it puts on the network — is a problem that AT&T intends to deal with, according to Ralph de la Vega, head of the company’s wireless unit. Speaking at the UBS 37th annual Global Media and Communications Conference this week, he reportedly addressed the issue of disproportionate traffic by iPhone users.
Averting PR Disaster
Tole Hart, research director for Gartner, said AT&T acted “to get out in front” of the issue of poor service. “They admitted that they have bad service in New York and San Francisco,” he said.
The key is to avoid letting rampant grumbling about poor iPhone performance transform into an overall and permanent condemnation of the carrier. “They don’t want this to lay and fester,” Hart said. “I thought it was interesting that (de la Vega) said that they want people to voluntarily limit their service. I don’t know if that’s plausible. He went ahead and said that they may have to make an adjustment in the future.”
The precise correctives have almost certainly not been determined. Bill Ho, a research director for Current Analysis, said the carrier undoubtedly will see how the situation develops.
De la Vega “hinted that they aren’t looking to slam anybody,” Ho said. “They may say, ‘Here are incentives, such as tiered plans going forward.’ Or [in some cases] they may lay out harsh penalties. They will probably wait to see what happens. It is not in their best interests to have a PR nightmare. To a service provider, a customer is valuable.”
Keeping Systems Humming
In general, wireless carriers are caught in a bit of a dilemma. Consumers haven’t stopped spending on smartphones and other wireless devices — indeed, wireless is one of the few bright spots of the past year….