$bbtitle
Apple Stock: 200.42 ( -0.17 )
RSS RSS Twitter Twitter
Search:
AppleInsider.com Archives News Bytes Reviews Anonymous Mailer Submit Story AppleInsider Forums Mac Prices Polls Advertise on AppleInsider Contact AppleInsider
Black Friday Deals Extended: save up to $300 on MacBook Pros and up to $180 on iMacs: Mac Pricing Guide updated Nov 30th (Find the best prices on Macs).
Tuesday, September 8, 2009

As iPhone users bemoan carrier, AT&T fights to improve its image

By Neil Hughes

Published: 03:50 PM EST

While the iPhone is often heralded as the "savior" of smartphones, reception of its marriage with U.S. wireless carrier AT&T has been decidedly less positive. As customers' complaints with the network have increased, AT&T, of late, has begun to fight back.

In truth, AT&T has been the proverbial whipping boy in its relationship with Apple. As the iPhone has prospered and continued to gain marketshare, numerous surveys have found the U.S. network to be the device's least-appealing aspect. "It's a P.R. nightmare," Craig Moffett, a senior analyst with Sanford C. Bernstein & Company, said in a story in last week's New York Times.

For months, as users have complained of the lack of features or the carrier's service, AT&T has remained relatively silent on the issues. Recently, though, that strategy has changed. Last week alone, the nation's second-largest wireless carrier announced improved 3G coverage, admitted network troubles the aforementioned Times report, released a video explaining the strains iPhone use places on its network, reached an agreement to allow one App Store application to transmit location data without the software running on the iPhone, and announced the long-awaited availability of multimedia messaging on Apple's phone starting Sept. 25. And that was all just in the span of a few days.

"The most important point is, we're listening to all customer feedback, and we’re acting on it," Jamie Carracher, a member of AT&T's Blogger Relations Team, said to AppleInsider when asked about the company's recent approach. "We're planning to invest between $17 billion and $18 billion this year to enhance our wired and wireless networks. We're pushing innovation across the industry to re-invent wireless network standards and equipment to stay ahead of customers' growing and changing use of smartphones and emerging devices."

AT&T has been slow to release features for iPhone users like MMS and tethering because those who use Apple's handset consume a great deal more data than any smartphone before it. Coupled with the astounding popularity of the iPhone, the situation has created network difficulties for the Texas-based wireless carrier, resulting in dropped calls and slower data connections. AT&T's growing pains have been headaches for some customers.

Much of the criticism of AT&T originates online, and particularly from Apple enthusiasts -- and even moreso in recent weeks, as the "end of summer" deadline for MMS approached without a word from the company, before last week. The Web's vocal critics are why the company has made a concerted effort to address the concerns of those communities.

Regardless of whether the message AT&T is trying to deliver is being listened to, at the very least it is being received. A new strategy in the company's public relations efforts has come in the form of "Seth the Blogger Guy." Seth Bloom, an AT&T public relations employee, has appeared in a number of videos that aim to answer questions and address concerns that originate online. A three-minute rundown of the AT&T network and MMS availability for the iPhone 3G and iPhone 3GS has received more than 130,000 views since it was released on Sept. 3.

"Look, we see the discussions on the Web, on blogs, on Twitter, on Facebook," Bloom began his most recent video, "so we thought it would be a good idea to take what's being said head-on."

To that end, AT&T has also set up accounts on Facebook and Twitter to not only announce news, but also dispel false rumors that crop up from time to time.

It's not surprising that AT&T would fight back against bad publicity on the Web. Even Apple, a company notorious for its tight-lipped approach to the press, recently took an alternative, almost grassroots-like approach to sway online opinion as criticism of the App Store swelled. But the volume at which the complaints directed at AT&T have been heard has been so great that the carrier, in recent weeks, directly admitted that at times their service has been substandard. The message the company has attempted to get across has, in effect, been: "We are going to do better."

While places like Facebook may be a way to reach out and communicate with customers, they also offer an outlet for customers to vent their frustrations. Recent posts to the official AT&T Facebook page feature complaints about coverage, data speeds, voicemail, and even Bloom's videos. Some of the items are given direct responses by AT&T officials.

"We've been working hard to foster healthy and ongoing dialogue, especially online where discussions are particularly passionate," Carracher told AppleInsider. "Listening is incredibly important to us. We monitor social media continuously for questions and issues that may affect our customers, and we respond as quickly as we can."

On top of the public relations issues, AT&T has paid numerous other, more literal prices for carrying the iPhone. In addition to the billions of dollars in network improvements planned for the coming years, the carrier also pays a large subsidy on each iPhone sold -- an investment that significantly impacted the company's bottom line last quarter.

Time will tell whether AT&T's campaign and ongoing investments prove effective. The company's agreement with the handset maker is set to expire in 2010, though officials are reportedly working to extend that contract through 2011. Some expect that the iPhone could jump to another U.S. carrier, most likely Verizon, within a year. And undoubtedly there are those who might wait for an alternative carrier -- but the effect an influx of iPhone customers might have on the performance of another network remains to be seen.

No matter what happens, AT&T hopes it will be able to satisfy its current crop of customers, as it continues to attract new iPhone users. And with its current outreach efforts, the company hopes its customers hear the message it has to share.

"Ultimately, we want customers to understand our strategy and our commitment to honing a new-generation AT&T network that is ready to meet continued growth in data demand, new devices and applications for the years ahead," Carracher said.

Filed under : iPhone 81 Comments ] 
Story topics: AT&T   Print ] [ Story Link ] 


Download Parallels 5.0 Today
Mac Poker players can play Full Tilt Poker for Mac and get 100% to $600 free with bonus code MP600, courtesy of Online Poker Mac
AppleInsider Features
Hot Forum Topics

Recent Articles
Google Phone reports continue; Apple rejects Motorola Droid app
Apple accused of NAND flash memory price manipulation
Another take: Apple's Black Friday sales seen as 'strong'
Rumors of Qualcomm-Apple iPhone deal persist
Apple's Black Friday Mac in-store sales forecast to decrease [u]
Evidence of Apple's new iPhone model, Maps application uncovered
Intel's Six-Core 'Gulftown' processor revealed, possibly headed to Mac Pro
Black Friday Mac and iPod price guides: find the lowest prices [Ux3]
Black Friday Deals: Office, Fusion, Parallels, CS4, QuickBooks
Black Friday at Amazon: GPS units, cameras, printers, Blu-ray
Apple MacBook Pro prices slashed by up to $300, iMacs by $180
Apple posts tools for building TuneKit iTunes LPs and Extras
Apple domestic desktop sales strong, iPhone sales slow in China
Apple authorized resellers launch Black Friday sales early [Ux3]
Palm Pre users suffer cloud computing data loss
Apple sues one 'knock-off' maker, defends against another
iPhone users most likely consumers to pay for digital content
Apple's iPhone to be sold by largest U.K. retailer, Tesco
Apple seeks permanent injunction to prevent Psystar sales
Motorola passes Apple in brand loyalty among men - study
Apple and Live Nation debut iTunes live music program
Rival publishers rumored to align for iTunes-like magazine store
TV market looks to mimic Apple with cross-platform 'app store'
Users report issues with Apple's new Core i7-based iMac
AT&T continues to counter Verizon claims as Apple enters ad fray
Apple iPhone eats up 50% share of all mobile data traffic globally
End of iPhone exclusivity means boosted sales in Europe
Malicious worm attacks, steals data from jailbroken iPhones
Apple exec offers glimpse into App Store approval process
iPod touch camera rumors resurface with claimed spring release
iPhone to launch in South Korea at end of November
Smoking may void Applecare warranty due to "health hazard"
Inside Google's Android and Apple's iPhone OS as software markets
Apple's App Store approval process gets partially automated
TomTom to release iPod touch-specific GPS car kit
China Unicom expects 10% of 3G users on iPhone in 3 years
Steve Jobs e-mails terse response to upset Apple developer
Hack re-enables Atom processor compatibility for Mac OS X 10.6.2
Microsoft shareholders grill CEO about Apple, iPhone
Google outlines Chrome OS plans for netbooks

AppleInsider Market Place

Sell your Laptop - working or not. Free shipping.: Get an instant online quote and sell your laptop today !

Believe in Office: Save Up To 25% on Office 2004 For Mac. Visit Our Site for Details!

IBackup - SMB Online Backup: IBackup is the preferred online storage and backup service of choice for SMBs for its ease of use, security and value. Offers automated backup and restore, file selection and securiy.

Download free software - everyday updated freeware files

 
Advertisements








AppleInsider RSS Feed
AppleInsider © 1997-2008
Please review our Privacy Policy.
Written/Edited/Compiled by the AppleInsider Staff.