Monday, December 20, 2010

AT&T Spends Big to Raise Bars


So, you work in a sky-scraping building in Center City Philadelphia...and the signal on your brand new Blackberry Torch reads "x" 5 out of the 7/8 hours you spend there a day.

You ask your neighboring co-workers: "Do y'all have any service? I can't do sh!t on my phone..."

Well AT&T is spending nearly $2 billion to buy the rights to certain airwaves (also known as wireless spectrum), of a failed Qualcomm Inc. venture, in a move to improve its mobile service.

Biting off more than they could chew, the carrier has been working to expand its over-burdened network ever since it became the exclusive carrier for Apple Inc.’s iPhone. Even with those exclusive rights, AT&T has suffered from the wrath of consumers, and earlier this month, Consumer Reports dubbed its mobile service the worst.

Early next year, though, look for things to change.

With Verizon Communications Inc. expecting shared rights to Apple's iPhone, a move which could shift some data traffic to Verizon, AT&T may be able to breathe again. It may also unleash a whole batch of new data intensive users on Verizon who have been waiting to buy an iPhone, but wanted a different carrier, like Verizon. It’s feasible that Verizon could get some of AT&T’s traffic problems, even though it has also been building out its network in anticipation of the iPhone.

AT&T said it’s acquiring this spectrum as part of its long-term planning. But the company is likely hoping to boost its service with the new spectrum for a new 4G network, and possibly stave off the looming departures of some of its customers, who may jump ship for Verizon.

The question is, even with the promise of a new network, will it be too late?

SCREAM @ ME!!!

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