Who’s More Closed Than Apple and Adobe? AT&T

      by Wyatt Walter

There’s been a significant amount of chatter lately around the Adobe v Apple we’re-more-open-than-thou pissing match, but AT&T has proved once again that vendor lock-in and control in the software industry is nowhere near as bad as the cell phone industry (heck, Verizon will even disable GPS devices in phones to make sure users have to pay for their navigation service).

AT&T has done so by announcing it is nearly doubling its early termination fees on smartphones and netbook data plans. This announcement has some seriously unfortunate timing after rumors of an iPhone able to run on the Verizon network emerged once again and seem to have been validated by AT&T’s rate hikes. As if the fee hikes weren’t enough, AT&T also seems to have taken a really idiotic stance on how it will keep its customers as well.

The money quote from the Wall Street Journal from this last week is that “about 80% of AT&T’s customers are on family-talk plans or business-discount plans, which are very ‘sticky.’” That’s it? That’s the reason AT&T isn’t scared? Because it’s a big pain to switch away? Because I’d have to switch more than one phone at once and that would be annoying? How about: “We’re not scared because we have better coverage and our customers know it” or “We’re not scared because our network is faster” or even “We’re not scared because our customer service is the best”? Instead, we get: “We’re not scared because it’s way too freakin’ expensive to switch.”

Why doesn’t AT&T list any of those reasons as the primary reason? Well, I think the answer is obvious. I work about 2 miles from the Apple headquarters, where you would think coverage on the iPhone with its exclusive provider would be top-notch, if nowhere else. But, alas, I drop calls and don’t get audio on calls all the time. This just doesn’t happen with my Verizon phone (I have an iPhone from work and a Verizon phone for personal use).

All right, now that the rant is over, when I imagine AT&T execs making this decision, all I can think of is:

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Filed under Rants : Comments (0) : May 23rd, 2010