Skip the navigation
News

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

By Matt Hamblen
October 22, 2009 11:44 AM ET

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."

Read more about Networking in Computerworld's Networking Topic Center.



Additional Resources
Forrester Consulting - Optimizing Users and Applications in a Mobile World
WHITE PAPER
Solving application issues over the WAN requires careful consideration. Based on their independent research, Forrester Consulting offers recommendations on how to tackle application performance issues, insufficient bandwidth and the inability to quickly restore users in a disaster.

Read now.

Security KnowledgeVault
WHITE PAPER
Security is not an option. This KnowledgeVault Series offers professional advice how to be proactive in the fight against cybercrimes and multi-layered security threats; how to adopt a holistic approach to protecting and managing data; and how to hire a qualified security assessor. Make security your Number 1 priority.

Read now.

Cut Communications Costs Once and for All
WHITE PAPER
New IP-based communications systems are being deployed by small and midsized businesses at a rapid rate. Learn how these organizations are enabling faster responsiveness, creating better customer experiences, speeding office or mobile interactions, and dramatically reducing existing communications costs.

Read now.

Networking White Papers
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
Networking Webcasts
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
Newsletter Sign-Up

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all newsletters | Privacy Policy
IT Jobs