AT&T CEO defends network issues
AT&T CEO Randall Stephenson, on stage at D: All Things Digital, fielding questions from moderator Walt Mossberg.
(Credit: Ina Fried/CNET)CARLSBAD, Calif.--AT&T CEO Randall Stephenson was the first person on the D: All Things Digital hot seat Wednesday, called on to address quality issues that have hampered the company's 3G cellular roll-out.
Moderator Walt Mossberg showed some data from polling that the conference did that found that not wanting AT&T was the No. 1 reason non-iPhone owners gave for not buying Apple's phone.
Stephenson defended the carrier saying that the No. 1 reason people leave all carriers is "network quality."
"You see our churn dramatically coming down," Stephenson said. "We feel like we are closing the gap on this. Are we there yet? No."
Stephenson's talk is just getting started and I'll update this post shortly.
Update 8:30 a.m. PDT: Stephenson talked about the power of the fourth generation networks that are coming on a limited basis next year, but not broadly until 2012. Stephenson said the company needs to do something to boost speeds before the so-called LTE networks arrive.
"Between now and then is a long time," he said. AT&T announced on Wednesday that it will upgrade its current network to a faster version that roughly doubles the theoretical speed of the network. (However, only new phones designed to use the new version will get the speed boost.)
"We are going to go ahead and deploy some rather aggressive wireless broadband," Stephenson said.
Update 8:45 a.m. PDT: Asked about the economy, Stephenson said it has impacted AT&T, particularly it's wireline business. Stephenson said people tend to cut home phone lines more often then they cut back on cell phone or TV service.
"Wireless is the priority of this business," he said, noting that he is encouraging his company to offer mobile versions on any service it can.
On the home front, the company knows it needs to boost the rates at which it can deliver video content to the home. "There are going to be more and more requirements for bandwidth," he said.
Stephenson said AT&T is testing a "pair bonding" technique that should offers speeds in the 40 to 50 megabits per second range. Mossberg pressed him for a time frame.
"I think I can call you this year," Stephenson said.
Update 8:50 a.m. PDT: Mossberg pressed Stephenson on whether cell phone bills are likely to go up or down over time.
"It probably depends on who you are," he said, adding that wireless costs are actually variable, despite the fact that most people pay a flat fee for data. Right now, he said, the margins on the iPhone service and wireless service in general are good. At the same time, he noted that each bit of data that goes on the network has a cost, suggesting that variable pricing could be an option down the road.
"The market will dictate that more than anything else," he said.
Update 9:05 a.m. PDT: An attendee asked about the decision not to allow Slingbox' iPhone player to use the 3G network. Stephenson said that the reality of the networks makes open-ended live video streaming problematic.
"You start congesting the network with data and voice quality goes down," he said.
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina. 
You're lucky if you get GPRS, much less EDGE. Forget about 3G unless you hold your phone out the window when you pass a major city. A lot of the time you get no signal at all. This is on a major interstate. And the Bay Area itself has the same dead spots it's had since it was CellularOne. ATT's engineering is really pretty non-existent.
ATT is a monopoly, same as it was in 1984, and we are suffering as a result of it. (The fact that they charge ad hoc subcribers 20 cents to send a 160 byte text message is obscene! Guess they're too busy pushing unlimited text packages for Arkansaurians to vote for Kris Allen...)
Prior to moving (back) to AT&T, I was on Verizon--whose service at my house and several places I frequently am was essentially useless. I was going to switch to AT&T once off Verizon contract, regardless of iPhone or EDGE. (iPhone is nice, but all I really need is low volume phone and incoming SMS (paging)).
And my (2009) Kindle has shown me a 3G flag once--and often is fewer than 5 bars. That doesn't keep the Kindle wireless from working here--it does well.
And then there is T-Mobile--good about 600 yards either side of the local highway's center line (OK, better than that, but you get the idea). I believe they have a new tower just out of useful range/sight in a different direction from the older tower that is just out of useful range/sight.
Bottom line: the AT&T network is fine here: so it's not bad everywhere. And all the networks are bad somewhere.
Yes, I'm an employee and we're always here to help! While we wish our coverage was awesome every where, it's just not a reality. However, new towers and improved coverage get deployed every single day!!!! Therefore, it's just getting better, not worse!!! At least AT&T gives you 30 days to use a wireless phone see for yourself!!!
"I think I can call you this year," Stephenson said. "
LOL, anyone else here have AT&T's U-verse?
They've been making this same promise for well over two years now and still, just like unicorns, no-one has ever really seen it.
It's about $20 cheaper then time warner but twice as fast.
I max out at 1MB/DN and 180KB/UP.
I got just the I-Net package for $55 a month,
F___ing Time Warner was charging me between $89-120 for just Road Runner service, and the F&^@$ers
sent me a bill for $357 when I canceled.
AT&T just seems to keep using this "pair bonding" as their ace in the hole...I'd really love to actually see it on one of their services before they start trying to dazzle us on how great it is going to be.
It's sort of like you catch AT&T in a corner in one of these interviews and their way out is to look up quickly and point out a non-existing balloon and then when you look up they run like hell.
In addition, my AT&T Iphone rarely works well in New York - WHY??? AT&T Iphone also did not work in Las Vegas during CES. It's like I'm back in the 80's this CEO is being Naive at best
Even when I am in an area that provides 3G services the quality and reliability of that service is so spotty, I would never make it my primary data solution.
I couldn't care less about the iPhone, but AT&T is the only decent choice for my area and the issues with their service sare painful enough that if competition improves, I will join the churn stats.
Anyways, who expects a CEO to do anything but lie and spin to make himself look good?
I can't believe how many people on here talk **** and don't know jack about the wireless industry!
Do you even know WHY you have to sign a two year contract??? It's NOT so AT&T can hold you hostage! That's how ALL carriers recover costs associated with the phone they give you!!! Do some research before you run your mouth!
- by ismatta May 28, 2009 4:18 AM PDT
- AT&T has been a bad experience for me. Their poor network coverage, and not allowing the Slingplayer software on their network (only for the iPhone), has convinced me to terminate my contract early. I am looking at the Palm Pre.
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