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AT&T Executive Downplays Effect of Eventual Loss of iPhone Exclusivity on Business

AT&T Mobility CEO Ralph de la Vega participated in a Q&A session this morning at a J.P. Morgan conference, and The Wall Street Journal blogged his comments, a number of which focused on the iPhone and iPad.

According to de la Vega, about 80% of AT&T's customers are on family talk or corporate discount plans, which serve as a significant barrier for customers to switch to a competing carrier. While he declined to reveal the date upon which his company's exclusivity agreement for the iPhone in the United States will expire, he appears relatively unconcerned over the possibility of a mass exodus of customers once the iPhone reaches other U.S. carriers.

De la Vega's comments do not suggest, of course, that Apple could not benefit immensely from an expansion of the iPhone to other U.S. carriers, which would allow the company to tap into large markets of customers who have been unwilling or unable to switch to AT&T for the device.

In addressing the iPad, de la Vega noted that he is a fan of the device, using it extensively on Wi-Fi. He does, however, enjoy the flexibility of having 3G data services available, even though he apparently does not take much advantage of it.

Apparently AT&T's mobility chief uses his iPad mostly on WiFi rather than 3G. But "if customers want to use 3G, we have to give them 3G," he says.

Questions also arose over AT&T's much-maligned wireless service, particularly in New York City and San Francisco. De la Vega expressed satisfaction with recent improvements in New York, but acknowledged that equipment shortages have continued to hamper AT&T's ability to bring service performance up to par in San Francisco.

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23 months ago
Dear Steve,

Please bring the iPhone to T-Mobile USA, then I'll sign up. I get zero bars of AT&T reception at home.

Thanks!
Rating: 0 Positives / 0 Negatives
23 months ago
i wonder when apple will just provide phone service themselves.
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23 months ago
I'm glad to see he's not concerned. So let's speed up the end of exclusivity in the US market as much as possible, shall we?
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23 months ago
I would attest to this. I am on a family plan with AT&T and have switched to Verizon for the Droid Incredible. I am the primary account holder, and the account is a business account. It is very difficult to make this switch happen. They do it on purpose. Goodbye AT&T.
Rating: 0 Positives / 0 Negatives
23 months ago
...with my family plan.

We all just text each other anyway.

Yup, I'm on a corporate plan, but it only saves a tiny bit anyway.

No barrier to me, AT&T!

He should be focusing on what the barriers are to staying.
Rating: 0 Positives / 0 Negatives
23 months ago
"Questions also arose over AT&T's much-maligned wireless service, particularly in New York City and San Francisco. De la Vega expressed satisfaction with recent improvements in New York, but acknowledged that equipment shortages have continued to hamper AT&T's ability to bring service performance up to par in San Francisco."

What about Seattle. Service is crap here.
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23 months ago
Bravado.... That's all his comments were on the subject.

He can't show weakness or fear because it would only open the door for a pushy Apple to get even pushier with demands.

When Apple offers the iPhone on other carriers in the States I bet you will see about 1/3 of AT&T's iPhone customers jump ship, especially if Verizon is one of the carriers.
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23 months ago
Hey AT&T here in San Francisco it is impossible to use your service while I am at a Giants game. What is the name of their ballpark again? Fix the network.....
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23 months ago

Dear Steve,

Please bring the iPhone to T-Mobile USA, then I'll sign up. I get zero bars of AT&T reception at home.

Thanks!


T-Who?

Steve
Rating: 0 Positives / 0 Negatives
23 months ago
[QUOTE




So that's what happened to the Micro Machines fast talking guy. He's now working for at&t.
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