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AT&T Stops Selling iPhone Online In NYC
Fraud? NYC Isn't Ready? AT&T isn't saying...

Intentional or not, AT&T has found one solution to recent criticism of congested New York City 3G networks -- stop selling the iPhone in the city to online customers. A Consumerist reader was told by an AT&T support representative that "New York is not ready for the iPhone," but apparently part of New York is -- since AT&T's still selling the device in stores. Another AT&T rep told a different caller that the online sale freeze was due to "increased fraudulent activity in that area when ordering the iPhone." We asked AT&T what was going on, and was given the stock statement they're telling any blogger or news outlet that asks: "We periodically modify our promotions and distribution channels. The iPhone is available in our New York retail stores and those of our partners."

Update: It looks like AT&T has resumed selling iPhones online in NYC, but is offering no additional information on why sales were halted.
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cableties
Premium Member
join:2005-01-27

cableties

Premium Member

Maybe AT&T

believe the Apple Tablet rumors too!


celeritypc
For Lucky Best Wash, Use Mr. Sparkle
Premium Member
join:2004-05-15
Caldwell, NJ

1 edit

celeritypc

Premium Member

I guess it doesn't apply to northern NJ

I just went to the AT&T site and was able to select an iPhone for purchase on a new plan in my zip code. I am only 12 miles west of NYC (as the crow flies).

Sure enough, if I put in an NYC zip code, iPhones are not available.

Matt3
All noise, no signal.
Premium Member
join:2003-07-20
Jamestown, NC

Matt3

Premium Member

Re: I guess it doesn't apply to northern NJ

said by celeritypc:

I just went to the AT&T site and was able to select an iPhone for purchase on a new plan in my zip code. I am only 12 miles west of NYC (as the crow flies).

Sure enough, if I put in an NYC zip code, iPhones are not available.
This also happened to a friend of mine here in Greensboro. She also called and they told her they weren't showing 3G coverage in our area and if she really wanted an iPhone, she needed to go into a store to buy one. I don't think it's coincidental that I had awful, awful service and she lives two miles from me and they wouldn't sell her one.

I'm guessing AT&T knows their network is overburdened, knows their exclusivity is about to end, so they aren't trying to help Apple sell more iPhones and aren't trying to further burden their network, but also don't want their stores full of iPhones either.

ToxicDrew
Premium Member
join:2001-09-24

ToxicDrew to celeritypc

Premium Member

to celeritypc
I put in a NY zip code 10011 and it allowed me to place a order with no problem.

Harddrive
Proud American and Infidel since 1968.
Premium Member
join:2000-09-20
Fort Worth, TX

Harddrive

Premium Member

hey AT&T...

Droid does NYC.

fifty nine
join:2002-09-25
Sussex, NJ

fifty nine

Member

Re: hey AT&T...

said by Harddrive:

Droid does NYC.
Don't they have the iPhones in the stores in NYC?

en102
Canadian, eh?
join:2001-01-26
Valencia, CA

en102 to Harddrive

Member

to Harddrive
Yeah - that T-Mobile android phone is looking good right now.

AcidDevil
join:2002-07-02
7th Layer

AcidDevil to Harddrive

Member

to Harddrive
said by Harddrive:

Droid does NYC.
I can't WAIT to see Verizon create a commercial about this! ...I can see it now..."There's a map for that" and AT&T's map will have NYC blacked out....or "Droid does" and you see Times Square powered up by an over-sized Motorola
DigitalNC
join:2009-12-29
united state

DigitalNC

Member

Re: hey AT&T...

It would be a lie, like the rest of their commercials and promises... that said by a former 20+ year Verizon (and whatever preceded it) customer. Fed up with their lack of signal and lack of honesty.

Justin024
@bankofamerica.com

Justin024

Anon

Hmmm.

FAIL
MyDogHsFleas
Premium Member
join:2007-08-15
Austin, TX

2 edits

MyDogHsFleas

Premium Member

You would think it's a fraud issue

if they were concerned about network congestion, why would they only stop online sales? And why would they even go to a drastic measure like stopping sales when that would surely not put much of a dent in the network congestion, at least in the short term? And, I would think that a large portion of the iPhones in use in NYC during the day are purchased in the suburbs (upstate NY, Connecticut, NJ, Long Island), so this would not change that.

I would bet that they are seeing some sort of big organized crime activity around purchasing iPhones online using stolen credit card numbers and having them delivered to addresses in NYC.

If this is actually the case, I don't think AT&T will tell Karl. So we'll probably never know for sure.

jmn1207
Premium Member
join:2000-07-19
Sterling, VA

1 recommendation

jmn1207

Premium Member

Re: You would think it's a fraud issue

At the moment, there are only guesses as to what might be going on. Perhaps those customers that would purchase an iPhone online are statistically more likely to gobble up precious bandwidth, whereas a consumer that walks into a store to make a purchase is probably not going to be utilizing the online features quite as extensively.
MyDogHsFleas
Premium Member
join:2007-08-15
Austin, TX

MyDogHsFleas

Premium Member

Re: You would think it's a fraud issue

said by jmn1207:

At the moment, there are only guesses as to what might be going on.
Oh I agree with that 100% and I am not pretending to do anything but guess at this point. But this smells to me much more like a fraud prevention measure than an attempt to mitigate network congestion.

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

Re: You would think it's a fraud issue

said by MyDogHsFleas:

said by jmn1207:

At the moment, there are only guesses as to what might be going on.
Oh I agree with that 100% and I am not pretending to do anything but guess at this point. But this smells to me much more like a fraud prevention measure than an attempt to mitigate network congestion.
exactly! why would AT&T actually try to mitigate network congestion?

NOVA_Guy
ObamaCare Kills Americans
Premium Member
join:2002-03-05

NOVA_Guy to jmn1207

Premium Member

to jmn1207
That could be the case. AT&T has long been crying about the mythical "bandwidth hog" creature that supposedly brings their extraordinarily bad network to a crawl.

Shame on iPhone users for actually using the data plan that AT&T sold them! They should all be ashamed of their desire to utilize the data plan that they're paying so dearly for.

Isn't it interesting that Verizon doesn't have all these sorts of problems with all the phones they've got out there? Or Sprint? Heck, Verizon even allows for VOIP and streaming over their wireless network in their TOS... Unfortunately AT&T just doesn't get it.

(And this is coming from a long-time AT&T customer... who recently moved to Sprint... and then to Verizon and the Droid, courtesy of Sprint's $0.20 regulatory fee increase nonsense...)

David
Premium Member
join:2002-05-30
Granite City, IL

David

Premium Member

Re: You would think it's a fraud issue

I wouldn't overly sell yourself on the sprint network. I used my sister's smartphone on sprint's network over the weekend. needless to say, if that's the best they have, AT&T isn't going to have any problems for a long while.

It took me 3 tries just to get here. I tried to wish everyone a merry christmas and that "smartphone" wouldn't even post my message even after I logged in.

I got in once and that's about all I got. I know it's a samsung phone, Don't know the model though. it looks about like the iphone but it has apps that are bars across the screen. has a arrow to the left, a house key, and I forgot the third key. When it's lit up they were in white.

NOVA_Guy
ObamaCare Kills Americans
Premium Member
join:2002-03-05

NOVA_Guy

Premium Member

Re: You would think it's a fraud issue

Yeah, I know what you mean... I had a Palm Pre on Sprint but dumped them a couple weeks ago and left for Verizon and the Droid. It was a good choice; I'm much happier now.

BTW, anyone who's interested in getting out of a contract with Sprint now could use their $0.20/line/month regulatory fee adjustment as a way to get out of the contract. If you got a notice about this in your December bill, all you should have to do is call them and let them know you would like to cancel service without an ETF. When one party to a contract makes a material change to it, the other party has the right to opt out without any penalties.

$0.20/month let me cancel my Sprint contract, 3 months in, without any ETF. And the Palm Pre is now headed over to eBay. I think they may have actually lost money by having me as a customer, by the time you factor in subsidies and the rebate I got on the phone.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5 to MyDogHsFleas

Premium Member

to MyDogHsFleas

AT&T selling online again in NYC

»digitaldaily.allthingsd. ··· s-again/
Looks like AT&T (T) has gone and “modified its promotion and distribution channels” again. Either that or it’s gotten a better handle on the “online fraudulent activity” that prevented it from selling Apple’s (AAPL) iPhone online to customers with New York City zip codes. The carrier’s Web site is once again accepting iPhone orders from potential customers living in Manhattan. I was just able to initiate two orders for the iPhone 3GS using New York city zip codes (click on image below to enlarge) — one in mid-town (10016), another in East Harlem (10029).

Boricua
Premium Member
join:2002-01-26
Sacramuerto

Boricua

Premium Member

They don't get it

If a consumer has a strong desire to get the iPhone, they will do so by any means necessary whether it's on eBay, Craiglist, etc .

Selenia
Gentoo Convert
Premium Member
join:2006-09-22
Fort Smith, AR

Selenia

Premium Member

Re: They don't get it

...or just walk into the store. I believe an online fraud issue seems logical. Otherwise, they would be pulled from stores too. A wider area at that.

Transmaster
Don't Blame Me I Voted For Bill and Opus
join:2001-06-20
Cheyenne, WY

Transmaster

Member

Re: They don't get it

I'll bet you it is because they have such a backlog of unsold iPhones in their retail stores this a way of forcing people to purchase them there.
clickie8
join:2005-05-22
Monroe, MI

clickie8

Member

Re: They don't get it

Why would they limit it to NYC then? I can order one online and I'm just a few miles from TWO AT&T corporate stores.

jbgroup1
Non Conformist
Premium Member
join:2000-05-04
Dayton, MD

jbgroup1

Premium Member

Re: They don't get it

New York City is a cesspool of vices and appeals to man's baser instincts. It deserves to be excluded form these great gifts. /joke mostly

uluckATTwork to Transmaster

Anon

to Transmaster
I have never heard of a backlog of iphones ANYWHERE. Mostly running out is the problem all over.

Transmaster
Don't Blame Me I Voted For Bill and Opus
join:2001-06-20
Cheyenne, WY

Transmaster

Member

Re: They don't get it

I am sure that if Apple marketed an iPod that looked like a dog turd people would line up to purchase it, The New i Turd, remember you heard it here first.

Pirate515
Premium Member
join:2001-01-22
Brooklyn, NY

Pirate515 to Selenia

Premium Member

to Selenia
said by Selenia:

...or just walk into the store. I believe an online fraud issue seems logical. Otherwise, they would be pulled from stores too. A wider area at that.
If it is indeed online fraud, than what makes NYC so special? What kind of info does AT&T ask you when ordering the phone online, besides your name, address and SSN so that they can check your credit? I know if it's in store, they also ask for government-issued photo ID, do they ask for anything else online so that they can verify that you are who you say you are?

Selenia
Gentoo Convert
Premium Member
join:2006-09-22
Fort Smith, AR

Selenia

Premium Member

Re: They don't get it

Maybe NYC is just convenient for said criminals? They could be local and some of the biggest cartels reside in big cities like New York. AT&T pretty well controls what is sold in their stores. I would think they would order the iphone off the shelves of their stores too and wouldn't allow places so close to online order it, as well. That is, if it were due to network issues. AT&T can be flaky in some spots, like other cell providers, but I really feel the issues are overhyped, at least in most of my experiences, of which the majority are in the Northeast.
raster44
join:2003-09-07
Niagara Falls, NY

raster44 to Pirate515

Member

to Pirate515
SSN? I doubt that to order a phone? And drivers license, never for credit card in a store except for Indian reservation when using credit card.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5 to Boricua

Premium Member

to Boricua
Also being discussed in Macintosh forum here at BBR:
»[iPhone] AT&T not selling iPhone in NYC
stufried
Premium Member
join:2003-10-13

stufried

Premium Member

If Fraud Was the Problem, They Could Blacklist those Phones

ATT could do wonders at reducing the fraud by blacklisting stolen iPhones by virtue of their ESNs. Right now they are happy to activate one that is stolen and refuse to engage in any behavior aimed at rooting them up because it is more contracts.

Yes, I know that they could be activated on TMobile, but it would be a start.
megatron266
Premium Member
join:2007-08-11
Miami, FL

megatron266

Premium Member

Re: If Fraud Was the Problem, They Could Blacklist those Phones

Almost all carriers have abandoned the ESN/IMEI blacklist not just AT&T. If it makes a dent in revenue they are not going to use it.
stufried
Premium Member
join:2003-10-13

stufried

Premium Member

Re: If Fraud Was the Problem, They Could Blacklist those Phones

And the EU mandated such a list and that ESNs be burned into non-volatile RAM. To the best of my knowledge, it did reduce phone theft.
megatron266
Premium Member
join:2007-08-11
Miami, FL

megatron266

Premium Member

It has to be a fraud issue.

I work for a company that does this all the time. If they see a particular zip code popping up a lot with fraud alerts they will stop shipping to all addresses in that zip code. You see when you purchase items online you can put any information and mask your trail and you get away with it before anybody figures out what is going on. When you are forced to go into a store you spend time there in front of cameras and employees see your face. I am sure that before you leave the AT&T store the device is activated on a line and a test call is made. When things go bad there is camera footage of the person and eye witnesses. It is a faster process because the real owner of the account will call in because they can't make or recieve calls. If they did it online the account owner wouldn't know untill they try to upgrade themselves and see they just did an upgrade 3 months ago and are not eligible. Is it the most effective way? I'm not sure but it dose help reduce fraudulent activity.
RolteC
The Need for Speed
join:2001-05-20
New York, NY

RolteC

Member

Re: It has to be a fraud issue.

I really hope Apple's new iPhone is June 28th or so will not be going to AT&T.

I hope that the greedy basterds at AT&T go to hell for there stupidity and laziness to upgrade the network, but instead stop selling smart phones, and most likely will not accept any good ones ever again.

Hopefully they go down the drain for slowing us down.

We as a race should be technology savy people, and should always be looking up at newer/better/faster things, but some of these companies just dont care about anything but higher profits.

The day will come, no more smart phones for AT&T, no more iPhone on AT&T, and there stock will finally take a huge hit and there saving of every single penny for a few years would be for nothing.

I know my $150/month is staying with them anymore after my contract is up in June/july.
rradina
join:2000-08-08
Chesterfield, MO

rradina

Member

Smells Rotten

Fraud would happen everywhere, not just the few area codes specific to NYC.

One would think if the demand is this high for the iPhone in NYC, that AT&T would put whatever money necessary to ensure the capacity is sufficient. And as long as the iPhone has been hugely successful, they surely can't be surprised by its bandwidth hungry network profile.
stufried
Premium Member
join:2003-10-13

stufried

Premium Member

Re: Smells Rotten

I just have a hard time believing that internet sales versus store sales would alter bandwith consumption that much. An ATT or Apple store (or I guess Best Buy store as well) is probably a fifteen minute subway trip away for most New Yorkers.

swintec
Premium Member
join:2003-12-19
Alfred, ME

1 recommendation

swintec

Premium Member

It Is Fraud!

Yes, it is fraud...the fraud that is happening is that they are over charging folks for the phone, over charging for the plan and data AND trying to pass off there network as top notch.
albundyhere
join:2000-10-26
New York, NY

albundyhere

Member

I'm surprised at&t is still around...

what a useless company. they cant even manage their infrastructure properly, much like TW. and its obvious that they dont want to provide paying customers good service as there's no maximizing profit in it.
Chaldo
join:2008-03-18
West Bloomfield, MI

Chaldo

Member

They still have them on the website for brooklyn

Last night they where off. Maybe they put them back on.

thender
Screen tycoon
Premium Member
join:2009-01-01
Brooklyn, NY

thender

Premium Member

Walk onto a floor of a building on 30th st/8th & 7th ave

and try to place a phone call on the iPhone. walk in circles.

Then try with any phone on Verizon.

the iPhone and AT&T aren't ready for New York. Not in the slightest.

•••••
LowRider
join:2006-06-23
Dallas, GA

LowRider

Member

Big Companies = FAIL

Seriously, every huge company or most anyway always slow the pace that technology progresses. Why did Cingular have to sale, they had such a wonderful service going then AT&T F-ED it up!!!

Pirate515
Premium Member
join:2001-01-22
Brooklyn, NY

Pirate515

Premium Member

Re: Big Companies = FAIL

said by LowRider:

Seriously, every huge company or most anyway always slow the pace that technology progresses. Why did Cingular have to sale, they had such a wonderful service going then AT&T F-ED it up!!!
You do realize that this "new" AT&T is not the same as "old" AT&T. Cingular was founded and co-owned by SBC and Bell South. At one point, SBC bought the remains of the old "AT&T" and inherited the only useful thing from them: the name. At about the same time, they merged with Bell South and re-branded themselves as AT&T. As the last step, they re-branded Cingular, which was by then owned by one company, as AT&T as well.

Martindziad
Premium Member
join:2002-04-04
Chicago, IL

Martindziad

Premium Member

was halted

Reason being the network sucks, it cant handle more users then it already has. And please these new commercials where Att states that you can surf the net and talk to someone on the phone at the same are a joke.