AT&T CEO: “We shouldn’t have offered unlimited data with the iPhone”

Randall Stephenson is well known for his inflammatory remarks regarding AT&T and its wireless network. Today, he is telling about a lot of things that are wrong with AT&T’s relationship with Apple. There are two main things that Big Blue’s CEO admitted about the iPhone and Apple in general.

The first was that AT&T should have never offered iPhone users unlimited data from the start. Since AT&T was the only iPhone carrier until 2010, AT&T had to invest heavily in network infrastructure in order to keep up with data-hungry iPhone users.

Stephenson told this to the New York Times:

“My only regret was how we introduced pricing in the beginning, because how did we introduce pricing? Thirty dollars and you get all you can eat,” he said in the on-stage interview at the Milken Institute’s Global Conference on Wednesday. “And it’s a variable cost model. Every additional megabyte you use in this network, I have to invest capital.”

Last year, both AT&T and Verizon moved to tiered data, in order to trim infrastructure costs.

Stephenson also voiced his opinion about Apple’s iMessage service, basically saying it undermines the carrier-customer relationship. Not to mention the constant worrying Stephenson has live through involving text-messaging fees.

“You lie awake at night worrying about what is that which will disrupt your business model,” he said. “Apple iMessage is a classic example. If you’re using iMessage, you’re not using one of our messaging services, right? That’s disruptive to our messaging revenue stream.”

AT&T’s data is expensive. Its service is notoriously sucky, and Stephenson is complaining about users? Instead of worrying about business models, maybe their money would be spent better elsewhere, like in customer service or in more updated infrastructure.

Via: The New York Times

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Delphinekoi 5 pts

Today, he is telling about a lot of things that are wrong with AT&T’s relationship with Apple. There are two main things that Big Blue’s CEO admitted about the iPhone and Apple in general.

DrewBradford 5 pts

I have had AT&T Verizon and TMO. Out of my personal experience, AT&T is the best. They have their issues but the customer service isnt' that bad if your patient with them. The data is fast and the phones are quality built compared to the ones I had on VZW. TMO was the worst experience I've ever had. VZW my phones kept breaking and they don't get good reception for me. My dropped calls were severely high. AT&T did in my opinion jump off into this data issue and the reason most customers hate them is the same reason they came to them. The iPhone was the first smart phone that was so multimedia using. As more people bought them more people used unexpected amounts of data on a phone that was no expected to become as large as it did, so fast especially. When picture messaging came out it brought down their network in random locations. I have been with them through all of this and I love them still. I swapped to other carries to try them, but it just didn't work. AT&T may have their issues but in my opinion they are the best cell phone provide because of my experiences. I have had tons of issues but they always make it up and my phone SELDOMLY messes up. My iPhone messes up more than my AT&T service, and that's why you goto the local Apple Store, right? 

WhitneyDaniellePyant 5 pts

Well that interesting because I heard that android user use more data then iphone users do

Gary jr 5 pts

With AT&T sucky service they should offer unlimited data for FREE but of course that'll never happen so tell these big CEO's to stop crying and go back to their multimillion dollar mansions and count the money that they have made from ripping us all off

He's right why give your customers the ability to use the features on their phone for one simple price that would be pro-consomer. You really have to feel bad for them and all the other service providers it must be so hard having to give what they pay for, we should all have a moment of silence to console them. They annoy the hell out of me they are just like the internet providers in my area, they charge way to much and your screwed because you have no other options with the exception you can get a iPhone on verizon, sprint or buy an unlocked one to use on T-Mobile or a Pay as you go service.

TheZachTweets 5 pts

Wrong.  The iPhone was exclusive to AT&T until 2011, not 2010.

zziccardi 7 pts

@TheZachTweets Wow, I didn't even pick up on that. Good eye.

zziccardi 7 pts

 srtgjtyj Not wrong. The iPhone 4 (GSM) was announced in June of 2010, and was only on AT&T. The iPhone 4 (CDMA) came out in February 2011 on Verizon.