AT&T exec implies iPhone exclusivity in U.S. to end
De la Vega offers no details, says AT&T has a good backup portfolio
Computerworld - AT&T Mobility CEO Ralph de la Vega strongly implied today that the carrier's exclusive deal to sell the iPhone in the U.S. is ending, although he gave no details in a conference call with analysts.
Asked in a question-and-answer session what AT&T plans to do should the exclusive deal come to an end as has been rumored, de la Vega said the iPhone is a good source of new subscribers, but is only part of a smartphone portfolio that gives good results.
"We have a legacy of having a great portfolio...that will continue after the iPhone is no longer exclusive to us," de la Vega said. "We think we will continue after the iPhone...to drive [results]...."
De la Vega said that while the iPhone has been a "good source of new gross [subscribers] for us," the new subscribers from the iPhone in the third quarter was only one-third of the total from all devices.
AT&T is thought to be losing the exclusive iPhone deal it has had in the U.S. for more than two years, possibly to competitor Verizon Wireless. Many believe the deal will expire in mid-2010.
Later in the call, de la Vega added, "we feel really good about our non-iPhone [subscriber] adds and net adds.... We feel really strong about our portfolio in quick messaging devices, including BlackBerry and all the smartphones."
De la Vega, who heads up the wireless unit at AT&T Inc. called AT&T Mobility, said the carrier will continue to offer a distinction from network competitors because AT&T's network can allow devices to simultaneously perform voice and data functions. "Some operators can use voice or data but not at the same time," he said. "What we have in our portfolio is a smashing set of products to come out to exploit that [simultaneous voice and data] capability to differentiate us and also with [network] speed.
"Even if we lose exclusivity [of the iPhone], we will be the only carrier with HSPA 7.2 [a network specification being deployed at AT&T] and [new devices] will work on our network faster," de la Vega said. "I feel as strongly as ever [about] the capability of devices in our lineup and [am] super-excited about the deals with e-readers and personal navigation devices. "
De la Vega also said AT&T is now working with device manufacturers to build Android phones that will "work best" on the AT&T network. "They are terrific devices and much better on AT&T than on anybody else's network."
Still, de la Vega conceded that iPhone has been good to AT&T, noting in his official presentation that the carrier activated a record number of iPhones in the third quarter, totaling 3.2 million in all, or about 43% of what Apple Inc. said were the 7.4 million sold globally in the last quarter.
Regarding the iPhone, de la Vega called it the best for ease-of-use by customers and seemed to offer a note of thanks to Apple after a good run with AT&T. "We spend an awful lot of time looking for the next great device and the next great technologies, and we think iPhone has set the bar.... All the manufacturers are figuring out how to get close, but iPhone is still the best in the world at this point.
"I never understated the capability that Apple has...," he continued. "It's all about making it simple for customers to use the services. Others will try to emulate them, but that device by far is the best in terms of ease of use."
Apple iPhone
- Apple snares top smartphone sales spot
- Will this be the year of Apple in the enterprise?
- iPhone app includes hidden tethering
- Apple is the No. 1 smartphone vendor again, say research firms
- Apple breaks Microsoft's 'lock' on enterprise workers, argues analyst
- Apple crushes sales records, hits revenue 'home run'
- Apple approves fake iPhone app for App Store
- Apple's iPhone narrows gap with Android among recent buyers
- iPhone purchase plans at all-time high in U.S.
- Apple's iCloud, Siri doubles iPhone 4S data consumption
Read more about Networking in Computerworld's Networking Topic Center.



- Excel 2010 Cheat Sheet
- Register for this Computerworld Insider Cheat Sheet and gain access to hundreds of premium content articles, guides, product reviews and more.
- Digital Transformation: Creating New Business Models Where Digital Meets Physical
- Individuals and businesses alike are embracing the digital revolution. Social networks and digital devices are being used to engage government, businesses and civil...
- Make the Connection: Better Network Connectivity Drives Transformation
- Network connectivity is more than just plumbing. Leading organizations today see high-performance network connectivity as a critical enabler of competitive advantage, and not...
- Virtualizing Government Infrastructure
- All server virtualization solutions are not created equal. The more-with-less agenda for government agencies is tailor-made for server virtualization, which is evolving into...
- Moving Service Management to SaaS
- Today, organizations can enjoy similarly substantial benefi ts by migrating their IT service management functions to a software-as-a-service model. This paper shows how...
- Achieving 360 Degree Network Visibility with Nimsoft
- 360° network visibility is critical for ensuring continuous availability of networks, servers, and applications-anything less could
have costly bottom-line implications.
All Networking White Papers
- Optimizing Networks for the Cloud
- Join guest speaker, Rohit Mehra, IDC Director of Enterprise Communications Infrastructure, to explore current trends, discuss best practices for optimizing Data Center and...
- Unified Communication for Dummies
- What's the best way to implement a unified communications solution for your organization?
- Try the OptiView® XG on your network - FREE
- The OptiView® XG is the first dedicated tablet with automated network and application analysis -- fastest way to root cause. XG raises the...
- Apps QuickStart Series Part 2: Designing and Deploying SQL Server on VMware vSphere
- Download this webcast to learn about the design considerations for virtualizing SQL workloads, performance and scalability information and high-availability options, as well as...
- Apps QuickStart Series Part 1: Designing and Deploying Exchange 2010 on VMware vSphere
- Download this webcast to learn the virtual hardware design considerations for Exchange 2010, deployment using the building block approach, options for high-availability and... All Networking Webcasts
