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Analyst: AT&T Not Spending Enough On Wireless
Network problems are the company's own fault...
by Karl Bode Wednesday 20-Jan-2010 tags: competition · business · wireless
During one of many discussions about AT&T's wireless network shortcomings a few weeks ago, a handset executive anonymously told the press he felt that AT&T would need to spend an additional $10 billion on backhaul to get their network up to snuff. That of course doesn't address coverage -- and AT&T's 3G network coverage continues to lag industry-leading Verizon. TownHall Investment Research tells IDG News that AT&T also needs to spend about $5 billion to extend broadband coverage. AT&T's taken heat lately for soaring wireless revenues, that aren't being matched by network investment, something Townhall's Gerard Hallaren agrees with:

According to TownHall, AT&T's capital expenditures on its wireless network from 2006 through September 2009 totaled about $21.6 billion, compared with $25.4 billion for Verizon and $16 billion for Sprint (including Sprint's investments in WiMax operator Clearwire). Over that time, Verizon has spent far more per subscriber: $353, compared with $308 for AT&T, Hallaren said. Even Sprint has outspent AT&T per subscriber, laying out $310 for network capital expenditure. That investment shortfall has been the major cause of AT&T's poor network performanc.

Apparently it isn't just satirists and fake CEOs who are noticing that AT&T's making a killing, but not putting adequate funds back into the network. Again that's great for investors (AT&T's entire reason for holding full investment back), but not so great for those who'd actually like to complete a phone call while walking down Fifth Avenue.

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Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

AT&T does have plans on wireless infrastructure spending

AT&T does plan on spending a lot of money on wireless infrastructure over the next 7 years:

They spent $6.5 billion in 2009.

»www4.gsb.columbia.edu/null/downl···d=732663
They expect to spend the following billions of dollars in the following years:
2010E: 5.625;
2011E: 5.875;
2012E: 6.114;
2013E: 6.347;
2014E: 6.581;
2015E: 6,815;
2016E: 7.493
--
My BLOG .. .. Internet News .. .. My Web Page

acrowl

join:2001-08-08
California, KY

Re: AT&T does have plans on wireless infrastructure spending

And this spending is something to brag about?

Infrastructure spending MUST and WILL increase by all carriers in coming years. 4G build out will not be cheap. It will also be the next "holy grail" of wireless growth. The carriers that don't have back haul in place now will be playing catch up.

Within the next two years the network stress that the iPhone has caused ATT will seem minor. We are on the cusp of crazy amounts of data being consumed as people move to a totally wireless environment.

Then look out, the carriers that did not do a good job of banking useable spectrum will be in trouble.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: AT&T does have plans on wireless infrastructure spending

Yes and No.

Yes - Because their networks 'work', and consumers perception of AT&T's network is poor. If AT&T did not spend enough to keep its network up to par, or keep its customers happy, they may go to another carrier.

No - The article doesn't go into detail on what VZW and Sprint spent their money on.

Sprint - did some purchases (iPCS, Virgin Mobile) as well as some heavy investment in Clear

VZW - purchased Alltel, and had to integrate

AT&T - purchased... Centennial, integration hasn't started
Skippy25

join:2000-09-13
Hazelwood, MO
I planned to lose 20lbs of fat and put on 10lbs of muscle.

Didn't work out so well, but hey I planned it didnt I?
jjeffeory

join:2002-12-04
USA
They need to spend more! MORE! Invest! INVEST!

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

They should cut the goofy ads

Get rid of the stupid attack ads. Verizon's network is better. Deal with it and upgrade yours.

Duramax08
A Challenger Appears
Premium
join:2008-08-03
San Antonio, TX

Re: They should cut the goofy ads

Agree. Who cares if you can talk and browse the web at the same time? Just another way you can get in a car accident. I got a iphone and never have used that function.
--
Would like a landline but wireless will work for now.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: They should cut the goofy ads

Besides, you can only do that on 3g. Most of ATT's network is not 3g.
itguy05

join:2005-06-17

Re: They should cut the goofy ads

said by fifty nine:

Besides, you can only do that on 3g. Most of ATT's network is not 3g.
That's funny - in the places I go to which is not Timbuktu I have 3G coverage on AT&T.

Uncle Paul

join:2003-02-04
USA
kudos:1

Re: They should cut the goofy ads

said by itguy05:

said by fifty nine:

Besides, you can only do that on 3g. Most of ATT's network is not 3g.
That's funny - in the places I go to which is not Timbuktu I have 3G coverage on AT&T.
Not here.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1
said by itguy05:

said by fifty nine:

Besides, you can only do that on 3g. Most of ATT's network is not 3g.
That's funny - in the places I go to which is not Timbuktu I have 3G coverage on AT&T.
Up where I live, I don't get 3G coverage. In some places I don't even get EDGE.
vanheve2

join:2005-12-16
Chicago, IL
Thats funny - in most places I go I don't have at&t 3G . However my friends with Verizon almost always do.

RRedline
Rated R
Premium
join:2002-05-15
Williamsport, PA
said by itguy05:

That's funny - in the places I go to which is not Timbuktu I have 3G coverage on AT&T.
You keep defending AT&T's 3G coverage, and yet the majority of your state is on crappy EDGE. I travel all over Pennsylvania, and it is a nightmare trying to USE my iPhone in many places.
--
One nation, under Zod!

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
Most of CA is 3G, with the exception of some of the rural (desert) areas between L.A. and Vegas and NorCal.

I do have issues on my Sprint Treo 800w (EVDO RevA) where calls end up dropping my data sessions:

- LCS (work service)
- PuTTy ssh + tunnel
- Outlook email

I do typically end up on +1 hour conferences, and would like to have access to email.

Mizzat
Will post for thumbs
Premium
join:2003-05-03
Atlanta, GA
kudos:1
Reviews:
·AT&T Southeast
said by Duramax08:

Agree. Who cares if you can talk and browse the web at the same time? Just another way you can get in a car accident. I got a iphone and never have used that function.
I use that funtionality constantly. Google maps while talking, seaching for where something is, sending email, sending a picture, then talking about it. I can't imagine life without that functionality now.
--
-M
NeoandGeo

join:2003-05-10
Harrison, TN

Re: They should cut the goofy ads

I prefer to not bother my colleagues with my slow 3G browsing while I am talking to them, so Verizon is a perfect match for me there.

thegeek
Premium
join:2008-02-21
united state
kudos:1
I'm sure the people you are talking to take comfort that you are completely ignoring the conversation while you browse the web and send emails.

A worthless feature on a worthless network.

Mizzat
Will post for thumbs
Premium
join:2003-05-03
Atlanta, GA
kudos:1
Reviews:
·AT&T Southeast

Re: They should cut the goofy ads

said by thegeek:

I'm sure the people you are talking to take comfort that you are completely ignoring the conversation while you browse the web and send emails.

A worthless feature on a worthless network.
It usually involves them, like let me send you this pic, so I get their reaction, or this email. I don't know where that is, let me look that up. you mean if you're at your PC you completely stop using it when you're on the phone? I don't and when I'm on the go, I still don't.

Fortunately I'm able to multi-task.
--
-M
TheGhost
Premium
join:2003-01-03
Lake Forest, IL

Re: They should cut the goofy ads

Fortunately for you at&t has decent coverage where you can do both. Up in Pittsburgh and in areas of Chicagoland, at&t cannot even maintain a decent voice call, let alone trying to surf while talking.
krazymon2

join:2008-01-13
Coraopolis, PA

Re: They should cut the goofy ads

I can personally attest for problems in the Pittsburgh area. In the last month I have had problems in Oakland and in Cranberry. Not able to complete voice calls, surf the web or send text messages. But the phone still stated the whole time it had 3G.

CaptainRR
Premium
join:2006-04-21
Blue Rock, OH
I have wifi on my Droid and most of the time other than on the road I can get on the web and talk at the same time on Verizon Wireless and its not a big deal.

Mizzat
Will post for thumbs
Premium
join:2003-05-03
Atlanta, GA
kudos:1
Reviews:
·AT&T Southeast

Re: They should cut the goofy ads

said by CaptainRR:

I have wifi on my Droid and most of the time other than on the road I can get on the web and talk at the same time on Verizon Wireless and its not a big deal.
You can maintain a wifi signal while traveling down the road? Can't be for very long. That's a sight I'd like to see
--
-M

CaptainRR
Premium
join:2006-04-21
Blue Rock, OH
Reviews:
·Verizon Wireless..

1 edit

Re: They should cut the goofy ads

I did say "other than on the road". Besides that I dont even TXT or any of that stuff wile driving anyway. I someone really wanted to They can take there wireless card if they have one put it on a wireless router creating a hotspot and yes it is possible to go down the road with a wifi phone.
jjeffeory

join:2002-12-04
USA
Quite a few people care! It's a very useful feature. VZW needs to just add the feature already. Not everyone is "stoopid" enough to drive, talk, AND browse the web at the same time.... We are grown ups here, right?
itguy05

join:2005-06-17
said by fifty nine:

Get rid of the stupid attack ads. Verizon's network is NOTbetter. Deal with it and upgrade yours.
Fixed it for you.

Uncle Paul

join:2003-02-04
USA
kudos:1

Re: They should cut the goofy ads

said by itguy05:

said by fifty nine:

Get rid of the stupid attack ads. Verizon's network is NOTbetter. Deal with it and upgrade yours.
Fixed it for you.
Verizon has the better network here, hands down. The trouble is ATT has better handsets IMO. But, you would think it's easier for Verizon to get better handsets than ATT to upgrade their network.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: They should cut the goofy ads

said by Uncle Paul:

Verizon has the better network here, hands down.
The problem with that statement, is that 'here' is different for just about everyone.
TheGhost
Premium
join:2003-01-03
Lake Forest, IL
The problem with Verizon is that even though they have a great network in many areas of the country, they tend to lobotomize their handsets, requiring additional cost VZ features instead of allowing native functionality.

digitalfreak
Premium
join:2005-12-09
Blacklick, OH
said by itguy05:

said by fifty nine:

Get rid of the stupid attack ads. Verizon's network is NOTbetter. Deal with it and upgrade yours.
Fixed it for you.
Sorry, you can't fix something that's not broken.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: They should cut the goofy ads

True - there is a difference between broken and not optimal.
It does work, its just not perfect in all places at all times.
--
Canada = Hollywood North

MovieLover76

join:2009-09-11
kudos:1
Reviews:
·Verizon FiOS
·DIRECTV
·Optimum Online
·Cablevision
I am a Iphone user and hence an AT&T subscriber since last august and a former Verizon customer. The maps show you the difference, why Verizon is clearly better. If you live in an area like I do, central NJ, you don't notice a considerable difference between the two, though voice quality on verizon was slightly better, an I think my dropped call rate has slightly increased, but nothing so bad that it would make me give up my iphone. I do however fear traveling outside my tri-state area will put me in a world of pain, based on the maps.

If Verizon or Sprint gets a cdma Iphone after AT&T's exclusivity deal is over, I will probably switch back after my contract is up.

If they add T-mobile as a gsm provider I'm staying where I am because T-mobiles 3G network is even worse than AT&T.

See 13 replies to this post
zed260
Premium
join:2007-09-30
Cleveland, TN
kudos:1
Reviews:
·Charter

1 edit

the problem is

that at&t underestimated the iphone and how much load it be on network and are paying for it now

same thing is in early stages of happing with there landline internet service if 3dtv takes off at&t wont be able to compete with there fttn inferstruture

morbo
Complete Your Transaction

join:2002-01-22
00000

Re: the problem is

said by zed260:

that at&t underestimated the iphone and how much load it be on network and are paying for it now
no, they underestimated the iphone and load AND they have refused to spend money to deal with the problem. underestimating the load is forgivable if the problem is fixed in a reasonable timeframe. unfortunately that hasn't happened.

CurGeorge8

join:2005-05-02
South Park, PA

Network Improvement App

But didn't they just release an iPhone app that will allow users to report specific network problems right to AT&T? Shouldn't this help them better manager their network investment dollars?

If you haven't heard about it yet, AT&T has an iPhone app that allows users to report network problems directly to AT&T. It uses the users GPS locations so that they can pinpoint exactly where the problem is occurring. You can read more about it on it's Wikipedia page

»en.wikipedia.org/wiki/Placebo

Karl Bode
News Guy
join:2000-03-02
kudos:30

1 edit

Re: Network Improvement App

I think it's largely designed to make customers feel better, precisely.

Morac

join:2001-08-30
Riverside, NJ
kudos:1
Reviews:
·Comcast
Also the app is defective by design in that you can't report areas without coverage since the app requires coverage to work. Yes you can leave the app open and wait until you get back into an area with coverage, but since the map doesn't display without coverage you won't know if the GPS location was tagged correctly.

In any case, do you really think AT&T will look at the thousands upon thousands of reports they likely receive daily?
--

The Comcast Disney Avatar has been retired.

SSidlov
Other Things On My Mind
Premium
join:2000-03-03
Pompton Lakes, NJ
you can't run two apps at the same time on an iPhone it's a Apple feature!
--
»www.Warpstock.org

Morac

join:2001-08-30
Riverside, NJ
kudos:1
Reviews:
·Comcast

Re: Network Improvement App

said by SSidlov:

you can't run two apps at the same time on an iPhone it's a Apple feature!
Nothing to do with the topic, but it's rumored that "feature" will come in OS 4.0.
--

The Comcast Disney Avatar has been retired.

SSidlov
Other Things On My Mind
Premium
join:2000-03-03
Pompton Lakes, NJ
Reviews:
·Optimum Online

Re: Network Improvement App

said by Morac:

said by SSidlov:

you can't run two apps at the same time on an iPhone it's a Apple feature!
Nothing to do with the topic, but it's rumored that "feature" will come in OS 4.0.
I've run multiple apps for several years now on my Sony Ericsson.... Goggle Maps, Voice, Opera Mini, GPS.... I just need a plug! GR&D
--
»www.Warpstock.org
djhexer

join:2002-10-07
Reno, NV

Suicide

They need to do something quick or they are commuting wireless suicide. They have the iPhone and they are releasing 5 android devices???
The 7.2 site upgrades are going to do NOTHING if they don't upgrade the 2 T1's running at my tower.

SSidlov
Other Things On My Mind
Premium
join:2000-03-03
Pompton Lakes, NJ
Reviews:
·Optimum Online

Re: Suicide

said by djhexer:

They need to do something quick or they are commuting wireless suicide. They have the iPhone and they are releasing 5 android devices???
The 7.2 site upgrades are going to do NOTHING if they don't upgrade the 2 T1's running at my tower.
Nope. It's obvious that the android phones are to cover their butts since everyone else has android phones already and they only have Blackberry, Palms and iPhones and a plethora of so-so pantech, lg and htc all of which with the iPhone exception are available in similar models elsewhere. The SE and other phones they offer are 2 or more years old, and while it's been rumored that the SE X10 will be on ATT they didn't pickup the two currently released S60 or Java based non-android phones from SE.

Additionally if the iPhone isn't extended -- the agreement with Apple runs out they need something that people will want. Even if the iPhone jumps to Verizon or T-Mobil how many ATT iphone users will either buy another new handset for Verizon or try to unlock the phone to take advantage? Their batteries will be needing to be replaced soon so it will be interesting to see.
--
»www.Warpstock.org
iansltx

join:2007-02-19
Golden, CO
kudos:2
Make that one T1 in rural areas. Though AT&T's network is the only 3G network that willl give you 1-1.2 Mbps uploads at this point.
TheGhost
Premium
join:2003-01-03
Lake Forest, IL

Re: Suicide

Fastest "network" between you and the cell-tower, after that, not so much.
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: Suicide

Yep.
Doubledee32

join:2002-06-20
Charlotte, NC

Love it!

I'm really loving these posts!! My contract with AT&T is over the 23rd of next month and I'm seriously looking at that Droid and Verizon just haven't made up my mind just yet because the I-phone is a great phone, keep these posts coming guys I'm really learning alot here(lol)

MovieLover76

join:2009-09-11
kudos:1
Reviews:
·Verizon FiOS
·DIRECTV
·Optimum Online
·Cablevision

Re: Love it!

I Droid is no iphone, if you are a consumer user, nothing can match the IPhone imho, and you will be dissappointed by Andriod which is still very rough around the edges. My advice, wait and see which provider gets the Iphone when AT&T exclusivity deal ends. If it's verizon or Sprint you will have the best of both worlds. Hell even t-mobile you could save a few bucks, but there 3G and 2G coverage is worse than AT&T

obeythelaw
Premium
join:2003-04-16
Bayonne, NJ

i hope someone else gets the iphone

i hope someone else gets the iphone soon. at least then, it will alleviate the drain on att as more people flee to another carrier.
MRCUR

join:2007-03-09
Columbia, PA

Re: i hope someone else gets the iphone

Who? T-Mobile? I don't think we'll see many people "fleeing" to T-Mo over AT&T. Sure the Tablet might be a GSM/CDMA hybrid device, but I don't think we'll see a re-radioed iPhone.

t3ln3t

@vericenter.com

spend! spend! ...ugh oh! we spent!

I'm in the market for a smarty-pants phone ... and thinking twice about using at&t at all ... not even for my new house.
As much as I liked my U-Verse service, I'm very hesitant to give them so much as one cent of my money.

I completely agree, at&t needs to increase spending on improving the network. Not just wireless though. The whole darn thing, has BIG holes. You can't get the same quality of service in many parts of this state. I can't imagine the differences between other regions.

Without a massive capitol investment in making the net, work, I fear at&t will see many more service issues, and bad press.

Chuck Carlso

@dsl.bell.ca

AT&T Not Spending Enough On Wireless

Sounds like AT&T has spent more in one year than all the combined telecoms in Canada in the last 20 years. Canada spends absolutely nothing.
DaveRb

join:2005-02-12
Allen, TX

Re: AT&T Not Spending Enough On Wireless

What about the GSM/UMTS overlay that Telus and Bell just launched last month? Or was that just UMTS (3G) on the Access (RF) side? NSS side would be able to do both. $800M to $900M (Canadian) @ total for both companies combinded. And do keep in mind that AT&T and VZW each have subscriber bases of 30 million plus. The entire population of Canada is @ 33 Million in the second largest county by land mass in the world, so do the math.
DaveRb

join:2005-02-12
Allen, TX

Re: AT&T Not Spending Enough On Wireless

oops, fat finger on my part, meant country not county, no offence meant and none should be taken. Born and raised in Alberta.
flyingjoey

join:2005-11-07
Jersey City, NJ
Reviews:
·Comcast

AT&T Sucks Butthole

Today I called AT&T and complained about the number of dropped calls. I told the rep to look at my account and notice how many times I've had to call the same number within a minute's time, and that AT&T doesn't change by the second but by minutes and because of the frequent dropped calls and the lack of reliable service, my minutes were going to waste.

The rep looked at my billing history and said "looks like there's a problem, you're calling the same number back to back" and I reply what should I do when my phone won't keep a freaken call long enough for me to have a conversation with people.

To make a long story short, 1. they're supposed to check out my area and see what gives, and 2. they gave me a 1,000 minute credit.
Sammer

join:2005-12-22
Canonsburg, PA

Stock Analysts are a bit Slow

This story is about TownHall Investment Research finally admitting what any reasonably informed person has known for some time now.
mwwarren

join:2002-03-20
Lancaster, PA

Useless AT&T and Verizon Arguements

At the end of the day and all the arguments, the bottom line is that the AT&T network is bad, and even in New York City a study showed that one out of 3 calls was dropped. The theoretic advantage of being able to use Internet and voice simultaneously is totally negated. For all the great potential that data brings, the primary purpose of any phone is it's ability to reliably work as a voice phone. Nothing can compete with the Iphone as a technical and functional masterpiece; but there already is an Iphone killer; it's called AT&T. My solution is to have my Verizon Blackberry and an ITouch. Maybe down the road there will be a better solution, but for now it's the best available.

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