When Apple announced the iPad at the end of January, it was met with both excitement and contempt. There had been so many rumors leading up to the announcement that it was guaranteed to leave somebody disappointed. One of the questions leading up to the event was “How would it connect to the internet?” WiFi seemed to be a given, but lots of people hoped there would be a 3G option as well. But along with the prediction of 3G was the hope of maybe Verizon or even Sprint as data providers this time instead of AT&T. But during the keynote Apple announced to a stunned audience that they would once again be working with AT&T.

Why AT&T Again?

Since that announcement, lots of people have asked “Why AT&T again?” This question is based on the fact that many people have been very disappointed—and even frustrated—by the performance of AT&T’s 3G network performance and coverage. There are states like North Dakota and South Dakota where AT&T has little or no coverage at all, and even the big cities like New York or Los Angeles have been plagued by very poor performance. My experience has not been so bad. I live in a rural area that also happens to be covered by AT&T’s 3G service, and it works very well. I know this has not been the case everywhere, and I can attest to that when I travel to places like San Francisco or Chicago. I also experienced the coverage issues as I traveled cross country this past summer. But I think the answer to why AT&T was chosen again is not as much an issue of network performance as it is network technology.

There are four primary cellular networks in the United States: AT&T, Verizon, Sprint and T-Mobile. Verizon and Sprint use a type of cellular technology commonly referred to as CDMA. CDMA is an excellent and efficient system, but it is not compatible with the GSM standard that AT&T and T-Mobile use. It is also not very popular outside of the United States. Although there are other CDMA networks in the world, there are many more GSM networks. In fact, almost every place that has a CDMA network has a GSM network, but huge portions of the world, like Europe, only have GSM. By choosing GSM, Apple made sure the iPad will work on the maximum number of networks available today. This means more sales opportunities for Apple, and it means easier traveling for their customers.

Choosing GSM for the iPad also allows them to leverage the already established relationships they have all over the globe. So, it was never really a question of GSM or CDMA. It was more a question of do they just use GSM or do they make a CDMA capable version as well. CDMA would also make it more difficult for it to be an unlocked device since the CDMA systems do not have a swappable alternative to the SIM that GSM uses. This means that a Sprint device will rarely be capable of working on Verizon’s network and vice versa. So, that leaves us with AT&T and T-Mobile here in the states but T-Mobile uses a frequency range for their 3G here that is incompatible with not only AT&T, but also everyone else in the world. So, the only network in the US that is truly a globally compatible network is AT&T.

Another likely answer to the question of why AT&T may be the sweetheart deal that Apple was able to get for the iPad data plans. $14.99/month for a 250MB plan and $29.99/month for unlimited data on the iPad are both really good deals. But they become even more amazing deals when you realize that they are completely contract free. This is a big selling point for the iPad. But why would AT&T allow such great deals for an unlocked device that is likely to bring more data usage to their already struggling network? We don’t know, but there are two likely possibilities.

The first is that AT&T—and possibly the entire industry’s business model—is beginning to change, and they are making data more accessible and affordable. This could be a big win for AT&T because it is much easier for their GSM network to easily accept unlocked devices that they do not sell or even have to approve. But I think the other possibility is more likely, and that is that Apple is using their existing relationship with AT&T to get a special deal with the iPad, and they are using the next generation of the iPhone as a carrot. I think the answer will become obvious in the coming year.

If we see that AT&T begins to allow other data-only devices—like netbooks from Dell or HP—to have the same kind of data packages and/or we see Apple releasing a Verizon iPhone this summer, then we know that it’s the first answer and AT&T is trully trying out a new and aggressive data business model but they gave Apple the big splash of announcing it with their device. However, if this deal stays exclusive to Apple with the iPad and possibly the next generation of the iPod touch, then we know that Apple was able to squeeze out a good deal from AT&T.

Will we be stuck with AT&T forever?

That brings up the next question; “Will we be stuck with AT&T forever?” I think the answer is that we will have to rely on AT&T for a little while longer, but that eventually Verizon will become an option. AT&T had and still has an exclusive on the iPhone in the U.S. Originally, there was clearly a contract that gave them that exclusive, but the details of that agreement have never been made public. The initial rumor was that AT&T had a five year deal, but then the rumor became a three year deal. Either way, this length of exclusivity is very rare in this industry, especially for a high profile device such as the iPhone. But Apple needed someone to take a chance on them because they were untested as a cell phone provider and they wanted to do things in a very different manner. AT&T gave them that chance, but got a great deal in the bargain. However, AT&T became a victim of their own success.

As the iPhone quickly took over the U.S. market, it began to take a toll on the AT&T network. AT&T was charging iPhone customers a premium for their unlimited data plan, but they did a lousy job realizing those customers would actually use that data. Up until now, most smartphone data usage was actually pretty light, but Apple’s success in making the iPhone easy to use and a better browsing experience changed that. The network struggled the first year, but it really got slammed as the app store opened up. AT&T panicked, and instead of rapidly improving their network, they played games trying to limit what customers could do on the network. Essentially, they were hoping to force customers into their usage models instead of changing those models and improving their network. It was a bad mistake on their part, and they wasted a lot of time. It was a series of mistakes in foresight and response on AT&T’s part, but they are paying for it as they now have a much poorer reputation as a service provider.

But to be fair to AT&T, the iPhone really was a game changer, and its success in the U.S. would likely have done the same thing to Verizon or Sprint’s networks had they been the chosen one. For the first time, a mass market cellular data device was actually being used heavily for data, and no one really saw that coming. But AT&T’s response to this is what has earned them their current reputation and disdain from many of their customers who feel trapped.

If not forever, then when?

We are now approaching the end of the third year of the iPhone. I think it is likely that the original agreement was a three year agreement, and that the iPad’s data plans—as well as recent improvements in AT&T’s network—are likely a concession for having the agreement extended another year or two. This makes a lot of sense for both companies. The iPhone has been a huge success for AT&T, and although the network upgrades it is causing will cost them, it can only help them in the long run.

But this also makes sense for Apple. I’m sure they would love to have the iPhone on other networks in the U.S. like they have in many of the other countries all over the globe. Having both Verizon and AT&T would give them access to far more customers than having either one alone. But, at this point, it seems unlikely Apple would come up with a CDMA version of the iPhone to operate on Verizon’s 3G network and only on Verizon’s 3G network. That kind of customization would be expensive and make their technical support costs much higher as well.

However, I still think a Verizon iPhone will likely come in the summer of 2011, but could be pushed out to 2012. The reason is 4G. AT&T and Verizon may use very different techs for their 3G data, but they are both planning to use LTE for their 4th generation (4G) data services, and so are most of the world’s carriers. So, the easiest path to multiple networks in the U.S. is to sell a 4G capable phone that could then fall back to using legacy technologies when they are out of 4G areas. Chipsets are being made today that will allow LTE handsets to work with either CDMA or GSM. Verizon will begin rolling out their LTE network this year, but AT&T is not expected to start until 2011.

So, for now, sticking with AT&T for another year or two means Apple can keep the simplicity of GSM but also use the iPhone exclusivity deal to help them sell other products. The economics are likely to change in the future, but for now, this answer makes a lot of sense from Apple’s perspective. We need to remember that Apple tends to think long term and rarely trades in those long term goals for short term successes.

Read [The iPad: To 3G or not 3G?]

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We are just past halfway through the 60 day waiting period that Apple announced for the release of the WiFi iPad. While we don’t know everything about the device, we do know there are six different models split in half by a single feature: a GSM 3G cellular radio for data only. In the last 30 days, the first question many people have asked is “Are you going to get an iPad?” But if the answer is yes, the second question is almost always “Are you going to get the 3G?”

3G ...

The choice to get 3G is tough. First off, the 3G radio will cost you an additional $130. It will also cost you some time if you have already decided to buy an iPad as soon as it is available; the 3G iPad is expected to be available about 30 days after the WiFi only version. This will likely mean you will have to wait until the end of April. It’s not a big deal, but it is something to consider if you aren’t the patient type.

But for that $130 you will get the ability to purchase a micro-SIM card you can use to connect to a 3G or Edge network much like an iPhone does today, but you can only use it for a data connection. One big advantage is that it is currently being offered contract free in the U.S. on AT&T’s network. Apple has also leveraged their relationship with AT&T to get some pretty good rates. They are offering a $14.99/month for up to 250MB of usage and $29.99/month for unlimited usage. Again, this is contract free so you can buy it for a month and then skip several if you want to before you turn it back on.

At this point, it is assumed that since you are buying the device contract free, that it will also be an unlocked device. This would mean that as other companies all over the world announce their plans, you should be able to also purchase micro-SIMs for networks all over the world, and hopefully they will also have monthly plans. This is potentially a great asset for those who travel a lot in the states or globally. In fact, if you only travel internationally once or twice a year, it could still pay off quickly. Currently, international data roaming plans on the iPhone are very expensive. AT&T’s highest available global roaming package for data will only get you 200MB/month and that amount will cost you $199.99. We will have to see what other service providers are going to offer around the world, but Apple and AT&T are off to a great start for the iPad.

Data is not the only advantage you will get for your $130. The GSM radio also comes equipped with a GPS chip. This GPS chip will work much like the GPS in the iPhone, and will be able to use the cell towers as well as satellites so it can more quickly pinpoint your location. This means that the myriad navigation and location apps for the iPhone would also work just as well on the 3G version of the iPad. With the right kind of car mount, the iPad could become the ultimate car navigation system. It would have a nice big screen, and you wouldn’t have to worry about being interrupted by a phone call while you are at a critical intersection. But other location aware social apps or even augmented reality systems would all be able to work well on the 3G iPad. All of this should work just fine without needing to purchase any kind of a monthly package from a service provider.

... or not 3G?

But what do you get if you choose WiFi only? First off, you can save yourself $130. But beyond that, you will still get a WiFi radio that is 802.11 a/b/g/n capable, a step up from the 802.11 b/g radio that come in today’s iPhones and iPod touches. Adding 802.11 a/n means the iPad will be able to connect at faster speeds to a newer WiFi router. This will be especially useful if you are streaming video or moving large files on your local network. The WiFi radio will also allow you to use basic location services based on nearby networks. It’s not always the most accurate way to use location services, but it can be good enough for some social networking apps or to help with finding out what your local weather is. However, it is nowhere nearly good enough to allow you to use navigation apps.

That is the question.

So which should you get? This will depend on several things. The first question is when and how do you plan to use an iPad? If it will be a device that you use mostly at home or work where you have an accessible WiFi network, and if you don’t plan to travel with it a lot, then maybe the WiFi is enough for you. Even if you travel a lot, if you already have an iPhone or some other smartphone with a data plan, you may still want to save yourself $130 and opt out of the 3G. However, if you travel a lot without a smartphone data plan, especially internationally, the 3G data option could actually save you a lot of money and frustration. Plus, the 3G option gives you the ability to use some of the iPhone’s great navigation applications.

The next question is whether you can afford it? If $130 is no big deal, then you may want to go for it. It will make the iPad a very flexible device without locking you into anything that might cost you more money. It will also add a similar amount of resale value to the iPad when you are ready to move on someday. But if money is tight, the WiFi iPad is very usable without that 3G option that many will not use much anyway.

And this is the my answer.

In the end, the 3G decision is a lot like the iPhone vs. iPod touch decision. This time, there is no monthly contract to make the cost difference as big, but the comparison is very similar. To answer this question myself, I will buy an iPad but I am currently planning to do the WiFi only version. I plan to use the iPad primarily at home, or, when I travel, it will be used in hotel rooms or other places that I might use my MacBook Pro today. I already have an iPhone for my domestic travel, and although I do travel internationally, I have found that WiFi is usually available. But the 3G option is still tempting, and it’s possible I could change my mind. I will almost certainly get the 3G version if I upgrade to a newer iPad someday. I especially like the idea of being able to use the 3G without a contract and on any provider available.

March is here and the first iPads should roll out this month. Hopefully we will find out more about it in the coming weeks. I suspect the we will read some reviews from folks like Walt Mossberg and David Pogue as we get closer.

Are you planning to buy an iPad and, if so, will you add the 3G to it? Feel free to discuss your thoughts in the comments below.

Read [The iPad and AT&T; here we go again]

Full Story » | Written by Ed McKell for Appletell. | Comment on this Article »

Has this ever happened to you? You open up the App Store app on your iPhone and find a new game or app that sounds pretty interesting or fun. And then, just when you’re expecting to start the download: “Item over 10MB.” Well, that’s a thing of the past…kind of. Apple has recently raised their download size limit to 20MB, which should allow for many more apps, movies and TV shows to be downloaded over 3G.

It really seems like Apple—along with carriers like AT&T—are finally starting to loosen up a bit about bandwidth, which is great for you and me. Apple only recently starting allowing VoIP apps to use 3G networks. This new support also allowed other media apps like SlingPlayer to work over 3G. AT&T’s recent deal with Apple for iPad 3G shows that they at least think they’ll be able to handle significantly increased cell tower traffic. iPads will no doubt be Internet/bandwidth devices, even more so than iPhones. So is AT&T ready? I don’t know, but they better be within two months.

But that’s all beside the point, which is that you’re now able to download a whole lot more over 3G from Apple’s App Store and iTunes Store. You still can’t download huge apps like Navigon, and I’m not certain you’d even want your iPhone to be able to do that. It could tie up your bandwidth for hours or more. Still, this beats trying to find an open WiFi network in many circumstances. I wonder if the 3G download limit for the iPad will be the same.

Happy downloading!

Via PocketGamer

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AT&T has announced they’ve allowed Sling to make their SlingPlayer Mobile app for iPhone able to use their 3G network. This just in, you’ll need to ask AT&T permission next time you want to use your iPhone…

Skype has also announced they’ll be taking their iPhone app into the realm of 3G before long. Other voice apps have actually beaten them to this feature, but nevertheless, consumers will likely prefer Skype to competitors. Why? Well, SILK audio has something to do with it. The SILK audio codec is about to make its way to the Skype app, and it is supposed to allow for CD quality sound for Skype to Skype calls. And I’m sure the iPad specific app won’t hurt, either.

It’s truly great to learn we’re finally going to be able to use most apps over 3G, specifically Skype and SlingPlayer Mobile. I mean, just think of using SlingPlayer on an iPad just about anywhere over 3G. That would make their app worth $30 easily. I’m hoping this trend continues and results in EyeTV’s app being enabled on 3G once again, as well. Hey Elgato, can we get an iPad app too? Thanks.

I personally think it’s pretty silly that AT&T has so far been able to restrict what apps on the iPhone may use its “unlimited” internet access that come with a standard iPhone data plan. Other phones on the network don’t see these kinds of restrictions, so I feel like the iPhone is being singled out. But I’m not really surprised. Still, I am happy to see that AT&T is finally relenting on their internet usage policies. By the time the iPad is in your, or more importantly, my hands, I think AT&T’s network will be significantly more open. And since the iPad will make use of that network in the US, that’s a good thing.  But who knows, maybe AT&T will finally come through on that iPhone tethering plan they promised last year.

If you’re planning to buy an iPad, what would you do if AT&T announced iPhone tethering in a month or two for the iPhone? If the monthly charge is the same, would you prefer to buy a 3G iPad, or just tether it to your iPhone? Would the $130 savings be enough to justify the annoyance of tethering to your iPhone?

Via [ElectricPig and Electronista]

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AT&T, the company we all know and love hate, has stated in their quarterly earnings call that they plan to beef up their network quite heavily this year. Beyond what they already spend to upkeep their network, they plan to spend an additional $2 billion or so (for an expected total of $18-19B in 2010) simply to make their network stronger. Admitting their 3G coverage isn’t good enough is most likely due to the increased attack ads by Verizon in terms of network coverage. And I have to say, we should all thank Verizon for being so blunt in pointing it out to AT&T; maybe that’s what they needed. The iPhone has certainly been the device to point out their weaknesses in coverage, and the launch of the iPad in two months or so isn’t going to help.

With this extra money being put towards the network, we can only hope it helps. While the iPad will give consumers a bit more of a choice in networks in terms of having a prepaid AT&T plan and allowing unlocked SIM cards, the iPhone is still unfortunately locked into AT&T. For the people stuck with this network, a refresh in terms of speed and reliability would certainly be met with open arms. For AT&T’s sake, I just hope it’s not too late. Once (if ever) the iPhone is available on more networks, we may see an influx of people leaving, so AT&T needs to do all that they can before that happens.

Via [Mashable]

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At their January 27th event, Apple announced what the networking aspects of the iPad are going to be. Basically, thanks to a “breakthrough” deal with (everyone sigh with me now…) AT&T, Apple is able to offer two different prepaid accounts for the iPad. The good thing, obviously, is that no contract is required. Furthermore, 250MB of data a month will only cost $14.99, while unlimited is just $29.99, and there is also free use at any of AT&T’s wifi hotspots. Furthermore, it can just be activated straight on the iPad as you want it with no hassle required at cellular network stores.

While the wifi and 3G version of the iPad does cost more than just the wifi version, this is certainly a nice inclusion—especially considering the iPad 3G models will be unlocked and able to use new GSM micro SIMs. Unfortunately, Apple hasn’t announced any international deals yet, but they promised to have them all by June/July. It will be interesting to see whether the international carriers are as willing as AT&T to bend to Apple’s demands.

One thing that does upset me is that despite the rumor, nothing was said about the iPhone carriers. Are far as I can tell, we’re still stuck there.

Full Story » | Written by Josh Holat for Appletell. | Comment on this Article »

Apple is about to prove once and for all just how much they really don’t need Macworld, but what can you expect from Apple during their special event on Wednesday?

A Tablet

Well duh. If Apple doesn’t, at the very least, announce a brand new tablet device, their stock price is going to plummet based on the expectations of this event. Most rumors agree this device will be like an enlarged iPod touch. It will more than likely have a 10 inch multi-touch screen. Battery life will obviously be important, but I’ve heard no reliable rumors. Price point will also be important, and that could range from as low as $400 to over $1,000. No matter the price, these things are going to sell like crazy.

Now, since we’ve pretty much agreed this is going to be a large iPod touch, I’m doubting that the interface will be drastically different from what we’re used to with the iPhone and iPod touch. But, you never know. The operating system will likely support more multi-touch gestures than the iPhone currently supports. This will probably wow a lot of spectators, but will become something we take for granted in a year’s time. Some think the interface will be a messy layer of complication. That’s doubtful.  Equally doubtful is this leaked image of the tablet glass. It’s just too tempting for you, the Internet anonymous, to resist photoshopping a “leaked pic” and throwing it at the fanboys, isn’t it?

iPhone OS 4.0

Yes, we all want a tablet, but again, we’re expecting it to be based on the iPhone OS. That would require a new version to support the increased resolution and functionality. Also, it’s kind of an annual thing anyway, so the next obvious step for Apple is iPhone OS 4.0.

Rumors state that multitouch gestures may be supported system-wide. This won’t quite be to Minority Report level, but we can dream. There may be some development to make background applications possible. And, of course, a few tweaks to the UI are in order. This update may forget about the first gen iPhone just like a big brother who’s past the age of birthday presents. Sorry first gen iPhone, you’re on your own now.

4th Gen iPhone

What’s the point of iPhone OS 4.0 if you can’t have another revision of the iPhone hardware to go along with it? Yeah, I know, I want a tablet much more than a new iPhone too, but it doesn’t hurt to have both. It’s still uncertain whether Apple will decide to show off the new hardware just yet, but there’s a possibility. If they do, you can expect a camera with more megapixels, an OLED display, a multi-core processor of some sort, and maybe even that front facing camera that is really more of a request than a rumor.

Beyond the hardware, consumers really want one update more than anything else: more iPhone carriers. Yes, yes AT&T might lose exclusivity of the iPhone.  Some say Verizon might be getting the iPhone, some say every US carrier is getting the iPhone, and some of us still think this is all BS.  Someone is crazy, but who is it?  I don’t know.  What I do know is not being able to surf the web and talk at the same time is quite a hurdle for Verizon to over come.  Tough call; not being able to surf and talk at the same time on AT&T because their network can’t always handle the traffic, or the same problem on Verizon because they technically can’t support it.  Does anyone else feel like U.S. cell providers are just taking our money instead of trying to catch up with the rest of the world?

So, we’ve rambled on about what we’ve heard is happening on Wednesday, but what do you think?  Apple’s tablet is the most likely thing to come out of this event; what do you think it will do? What’s the “wow” feature?  How much will it cost?  How much will you be willing to pay?

Full Story » | Written by Jake Gaecke for Appletell. | Comment on this Article »

In what can only be described with the word “finally!,” Hot Hardware is reporting they have information from an inside source that AT&T will be losing the iPhone exclusivity deal this Wednesday, the same day as Apple’s rumored tablet event.

Part of the reasoning behind this is AT&T’s inability to beef up their network as millions and millions of data using iPhone customers pound on it in ways networks have never seen before. This is quite unfortunate for AT&T, as the iPhone brought their company hundreds of thousands of new customers, something that a good company should’ve taken advantage of and used as an impetus to become the best network. Instead, they have let is tarnish their image and network beyond a degree from which they can soon recover, in my opinion.

While Hot Hardware doesn’t have any information on which company will be getting the iPhone on their network if this rumor does turn out true, they believe that AT&T is planning to announce many more smartphones on their network to compensate. However, losing the iPhone will probably be the worst thing that could happen to their company, so they’d better hope some of those phones are better than the ones we’ve seen from Android, etc.

All I know is geeks worldwide will rejoice this Wednesday if AT&T loses their exclusivity, and I can’t wait to see it.

Via [Hot Hardware]

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In what is an apparent response to Verizon’s price cuts (as opposed to an act of customer good will), AT&T will offer their unlimited voice and data plans for $99.99 per month starting Monday January 18th, 2010.  The unlimited plan does not include text messaging, but is available for AT&T phones, including the iPhone.

Family Talk plans have also dropped down to almost sane prices at $179.99 a month. Texting plan prices have not dropped or been included, so you’ll still need to shell out an extra $20 a month for individual plans or $30 for Family Talk Plans, which is just ridiculous. I can’t imagine any real reason why texting needs to cost so much. If you can stream internet radio to your phone all month long at no extra charge, why-oh-why do they need to charge for texting separately? Since there’s really no practical alternative, I’m forced to believe they just want to steal your money from you.

These plans are available at AT&T wireless and do not require current users to sign a new contract. There’s no current word on pricing for non-unlimited plans.

I think it’s interesting that AT&T finally lowered their unlimited plans to almost match Sprint. Sprint’s plan actually includes text messaging, but it’s not really a big surprise for AT&T to still be playing catch up with other carriers. After all, they have iPhone exclusivity, why drop prices? Or do they know something? Is AT&T finally making their prices competitive so that they don’t lose all of their iPhone customers to a possible Verizon iPhone?

It’s hard to say. And the more I think about it, it’s becoming a tougher call as to whether I’d jump boat to Verizon if they get the iPhone as well. After all, you can’t call and use the Internet at the same time on any of Verizon’s current networks; CDMA just doesn’t support it. But then again, every time I interact with AT&T, I get the feeling they couldn’t care less about any of their customers.

Via [Yahoo Finance]

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How do you fix all the network traffic issues in New York? By stopping all sales of iPhones, of course. Wait…what? Seriously? AT&T’s best, most obvious solution to network congestion issues is to simply stop selling one of their most popular phones?

“Yes, this is correct the phone is not offered to you because New York is not ready for the iPhone.” - Daphne, an AT&T Customer Service Representative.

Didn’t they used to be?

I’m sure you’re as shocked as I was when I first read this bit of info from The Consumerist.  They’ve since updated their site with a little more info on the situation.

In a written statement, AT&T spokesman Fletcher Cook told Consumerist that “We periodically modify our promotions and distribution channels.”

I don’t know about you, but I’m sick of AT&T’s failure to see the root of all of their problems. Gizmodo posted an equally upsetting article some time ago showing that AT&T has spent less each quarter on their network since the quarter in which the iPhone was launched despite increased traffic along with increased revenue on wireless traffic.

So I guess this is just another case of AT&T blaming its users for its problems instead of thanking them for their support. I hope to show them the same kindness sometime this summer by jumping boat to Verizon, Apple willing. Who’s with me?

Update:  Oops, looks like AT&T figured out that we caught them with their pants around their ankles. You can once again purchase an iPhone 3G(S) through their website, even with a NYC zip code. See folks, the power of the internet! Today we’re regaining the ability to spend our own money on what we think we want, tomorrow we’ll be changing the world!? Doubtful, heck I doubt anyone really wants to buy into the AT&T network from NYC right now anyway.

Full Story » | Written by Jake Gaecke for Appletell. | Comment on this Article »

Every year, Apple hosts the Worldwide Developer’s Conference in San Francisco’s Moscone Center. Next year’s “Corporate Event” has been booked for June 28th through July 2nd, according to AppleInsider’s keen eye on the Moscone Center Calendar. But why is it so late next year?

You might recall that June has almost become the month when we traditionally welcome the newest version of the iPhone.  The original iPhone was introduced on June 29th, 2007 in the United States on the AT&T network.  You might also know that there’s a three year exclusivity agreement between Apple and AT&T on U.S. soil.  How better to celebrate the three year anniversary than by serving divorce papers?

Hatred for AT&T runs deep, so much so that I wouldn’t be surprised to hear that your most wanted feature of iPhone 4.0 might be Verizon’s network. With WWDC’s dates for next year, it’s very possible that the iPhone might break free of its single network and start supporting Verizon (as well?). Though this could merely be wishful thinking.

While AT&T continues to search for ways to limit its iPhone population’s network features and usage, Verizon has confirmed that their network would be capable of handling the pressure exerted by a rabid mob of iPhone users. They didn’t say they would be offering the handset, but it makes me wonder why they are even stating they could handle it if they truly don’t intend to.

So, how many of you would gladly pay AT&T’s fee for jumping boat to Verizon for the next iPhone? I know I would.

Full Story » | Written by Jake Gaecke for Appletell. | Comment on this Article »

O2, Orange and Tesco already sell the iPhone in the U.K., and now Vodafone will join them. You can preorder your iPhone now on Vodafone’s website and expect delivery January 14th.

Prices for the iPhone on Vodafone’s network will start at £30 a month for a 24 month contract, and customers will have to pay another £59 for the 8GB iPhone 3G or iPhone 3GS 32GB model for the top line iPhone.

Every plan includes 1GB of data, unlimited text and 1GB of free WiFi use at BT Openzone hotspots.

With O2’s network having serious problems—as reported in a tweet on the their official Twitter page—Vodafone may be gaining some marketshare if they can cope with data useage of iPhone customers.

You can pre-order the iPhone on Vodafone’s site today.

Price Chart via [9to5Mac]

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According to recent reports coming from Tokyo-based research company Impress R&D, the iPhone now holds a commanding 46.1% of the mobile smartphone market share in Japan. More specifically, 24.6% of this come from the iPhone 3G while the other 21.5% is thanks to the 3GS model. Considering the amount of advancements in technology and wireless networks coming out of Japan, it’s fascinating to see a phone designed in the West take hold of so much market share. This means the iPhone it is beating out both the Android and the Blackberry in this market.

Part of this success may be due to the intense marketing campaign that SoftBank Mobile—the carrier of the iPhone in Japan—has enacted since its launch. However, I still believe a lot of it is simply how well the iPhone functions. Nonetheless, whatever the cause may be, it’s still fascinating to see the iPhone putting up such large numbers in terms of market share. It’s a great thing Apple decided to release it to so many countries!

Via [Mobile Crunch]

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“Operation Chokehold,” an event set up by the infamous blogger Fake Steve has one goal in mind: bring the AT&T network down in an extremely harsh way in order to prove to them that they need to expand it. According to Fake Steve himself, the plan is as follows:

On Friday, December 18, at noon Pacific time, we will attempt to overwhelm the AT&T data network and bring it to its knees. The goal is to have every iPhone user (or as many as we can) turn on a data intensive app and run that app for one solid hour. Send the message to AT&T that we are sick of their substandard network and sick of their abusive comments. The idea is we’ll create a digital flash mob. We’re calling it in Operation Chokehold. Join us and speak truth to power!

Now Fake Steve isn’t taking this lightly, either. When he says “data intensive app,” he means apps that stream even more data than those such as Pandora. For instance, I have a feeling we are going to be seeing a lot of Qik streams from the iPhone during this time period.

However, now that you have the background story, let’s jump to the current. Cult of Mac is now reporting that AT&T has responded to Fake Steve’s plan with the following:

We understand that fakesteve.net is primarily a satirical forum, but there is nothing amusing about advocating that customers attempt to deliberately degrade service on a network that provides critical communications services for more than 80 million customers. We know that the vast majority of customers will see this action for what it is: an irresponsible and pointless scheme to draw attention to a blog.

Acknowledging the plan exists may not have been a very smart move, as now it is only causing more press about the event. As an example, there is already a Facebook group for the cause that is brainstorming the best applications to use, as well as other mischievous plots of evil. It’s sort of interesting to see how seriously people (as well at AT&T apparently) are taking this. Will you get involved?

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It appears as if UStream has won the race over Qik to bring live streaming from the iPhone to the web. With the appearance of their latest application—UStream Live Broadcaster (free)—in the App Store, members of the UStream community will now be able to share, via the web, what they are doing while on the go. Much like the actual website, you have the opportunity to save your videos and mute the audio during and after the livestream. Furthermore, you can even post to Twitter right from the application to let your followers know you’re live streaming.

Just to make sure it worked, I fired up a quick stream and was impressed with the results.

You’ve got to be happy Apple has finally allowed an application like this into the App Store. While I’m sure AT&T is freaking out even more now about their network, it’s just another reason they should actually take the time and effort to improve it. Applications like this are only going to get more and more popular, and AT&T needs to be ready if they want to keep on being competitive with networks such as Verizon.

We recommend you hurry and download this application before Apple and AT&T realize it is there and take it down…as history has shown they very well could!

Product [UStream Live Broadcaster (free)]

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A new application from AT&T titled “Mark The Spot” allows iPhone users to point out areas where the AT&T network may be lacking. Assuming you’re able to get an Internet connection (as the very existence of this app may lead you to doubt), you can personalize and send feedback straight to AT&T quickly and easily. With the ability to point out dropped calls, failed calls, no coverage, data failure, and poor voice quality as well as the frequency at which they happen, this app will use the built in GPS to send the location of the failure to AT&T. Then, assuming they created this app to actually make use of the feedback and not just make us feel better about ourselves, the coverage in that area could actually hopefully improve someday.

While it is somewhat sad that it had to come to the point where AT&T made an application for it, I see this as a good thing. I’m assuming AT&T will take all of this data (and I’m sure there will be plenty of it) to decide which areas of the States to devote the most time to bettering. Even if it doesn’t come to some areas, any improvement at all would be better than none, and this application is the perfect tool for helping doing so.

Product [AT&T Mark the Spot]

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In a bold new advertisement from Verizon, the company procedes to call the iPhone a “princess” and “digitally clueless beauty pageant queen,” while stating that their Droid is a “robot” that “rips through the web like a circular saw through a banana.” While the analogies may be clever, I don’t think Verizon is attacking the right points in this advertisement. Yes, we can all agree that the iPhone hardware is certainly centered around being beautiful and slick, but, by attacking that, Verizon is only pointing out that their phone may have inferior hardware. There is no doubt in my mind that the iPhone feels better in my hand, and that’s important. Although it may very well put “can do” before “hairdo” as it states, hardware is certainly part of this mix, and the iPhone is ahead in that category.

Check out the ad below:

While the Droid does have a hardware keyboard and what many people are calling a better screen, the iPhone’s hardware is certainly not lacking. For example, it is a little thinner than the Droid and doesn’t have to worry about battery covers that fall off or sliding mechanisms. Also, in my own experience with holding the Droid, I found the physical keyboard to be extremely lacking. That said, I didn’t get to use it for very long. Either way, I don’t feel as if Verizon should be giving their Droid the image of being a fast, strong, and somewhat scary robot. After all, it’s only a phone, and at the end of the day, people only care about how it performs, not how it says it performs.

Via [Mac|Life]

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It appears as if the recent onslaught of AT&T and Verizon bashing each other through their ads may soon be coming to an end. In a recent report, it was confirmed that AT&T has dropped their lawsuit against Verizon regarding their 3G coverage claims. By the same token, it also appears as if Verizon has dropped a similar lawsuit against AT&T. Therefore, it is most likely that both AT&T and Verizon have mutually agreed to drop their legal actions and stop wasting time and receiving bad publicity through their lawsuits.

It certainly would’ve been an interesting case to watch unfold, but I’m somewhat content that it came to an end in this way. In my opinion, the case would’ve been pointless as both companies would have debated about their networks and coverage to no end when most of the commercials were technically correct anyways. Hopefully we can see AT&T stop wasting money on this, now, and spend more time and money beefing up their network so I can actually make a call with my iPhone.

Via [MacRumors]

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The iPhone made its landing in Korea last week, and it brought some nice numbers, too. 60,000 phones were delivered for the initial launch of the product, with 1,000 being handed out in Seoul instead of being sent through the mail. As with here in the United States, Korea saw its fair share of people in line, too. The first person in line reportedly waited for 26 hours just to get his hands on one. KT Corp. will be carrying the iPhone in Korea and is hoping the iPhone “will be a trigger point for the smartphone market in Korea.”

With the appearance of this device in Korea, smart phones now make up 1% of the overall cellphone market in the country. The majority of these products come from Samsung and LG, so KT Corp. is excited to help kickstart the smartphone market in the area. Since the iPhone is already available is most of the Asian countries, Korea is probably happy the wait is over. While we won’t see millions of iPhones sold there as we have in the States, it is certainly nice to see it being offered in even more areas of the world on even more carriers.

Via [BusinessInsider]

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We reported this week that Apple has stepped into the AT&T vs. Verizon match which has been going on for the past few weeks now. Two new iPhone ads ambiguously (but clearly) take shots at Verizon while advertising AT&T’s unique features, such as the ability to handle voice and data connections simultaneously on AT&T’s 3G network—something that Verizon is incapable of and that AT&T has been using against the company in their own set of attack ads.

This is all particularly interesting, as rumors have been circulating for a couple of years now of a Verizon network iPhone. For now, at least, it seems Apple and AT&T are at least functional tag team partners, whereas no one has charged down the aisle in Verizon’s defense.

If you didn’t already know, AT&T filed a lawsuit against Verizon earlier this month over what the company calls “blatantly false and misleading” advertising messages from Verizon, although Verizon quickly countered, noting that “the truth hurts.” A federal judge has ruled in Verizon’s favor for now, denying AT&T’s request for a temporary restraining order which would have prevented Verizon’s attack ads from being shown. The full case will proceed in court starting on December 16th.

No word on whether it’ll be broadcast live on PPV.

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No longer is this attack ad battle between Verizon and AT&T, as Apple has now stepped their foot through the door. With two new ads involving the iPhone and that same unusually perfect hand, Apple points out some of the things that are possible on AT&T’s network. For instance, AT&T subscribers with an iPhone can talk on their phone while at the same time checking an email, dinner reservation, or almost anything else internet related, according to these commercials. And as we saw in AT&T’s last commercial, Verizon apparently doesn’t allow this. The interesting part about Apple’s ads, though, is that they don’t mention Verizon. Instead, they ask at the end, “Can your phone and your network do that?” Clever, Apple, but we all know you are talking about Verizon.

Now that Apple has involved themselves, it’s two against one in this battle. It certainly appears as if the various marketing departments are having a lot of fun with these ads, and I’ve certainly had fun watching them go back and forth. That said, I have comfort in knowing that these battles can only lead to good things for consumers, so I’ll gladly sit back and wait for more to happen.

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So you want a new iPhone 3GS? That’ll cost you $199 plus a two year contract with AT&T that can easily cost $90+ a month for one person. Not only that, but AT&T doesn’t exactly have the best network around. But what if you want a Motorola Droid? While that will cost you $200 with a two year contract at Verizon, this isn’t your only option. Sure, Amazon is selling the Droid for $149.99 with a service contract, but you can still get it even cheaper.

Yes, Dell is selling the Droid for a slim $119.99 price tag with a service contract. Also, along with this cheap price comes the stability of the Verizon network that has been dueling it out with AT&T lately in their attack ads.

You are able, however, to purchase an iPhone 3G for only $99.99 with a two year contract at AT&T. But you wouldn’t have the latest iPhone on the market and could harm your geek credit. Either way, it’s interesting to see how competitive Motorola and the companies selling their Droid are able to be with the pricing. Being lower than the iPhone and on a network that many people would argue is better, it seems as if the iPhone actually has some good competition now. After all, the Droid did sell around 200,000 phones upon launch and is already doing much better than the iPhone’s first suspected major competition, the Palm Pre.

Via [Business Insider]

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It gets better every day. Just a couple days ago, as Verizon responded to AT&T’s lawsuit about their 3G coverage maps, it appeared as if AT&T had nowhere to go. However, that’s certainly not the case. As you can see in the ad below, AT&T isn’t going to give up on this one. It may be true that Verizon has the most expansive 3G network, but AT&T is now claiming they have the fastest 3G network, allow you to talk and surf at the same time, carry the most popular smartphones, and have over 100,000 apps available. Like with the coverage map, Verizon might be out of responses here. Check it out below.

Oh, and there’s also a website entitled the truth about 3G that AT&T has launched in response. I’m sure the advertising departments at both Verizon and AT&T are having a lot of fun with this battle, and I can’t wait to see what the people at Verizon come up with next. This is certainly getting amusing.

Via [The iPhone Blog]

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Recent reports out of TechCrunch are informing us that the Google Phone is no longer a rumor, and will in fact be released within a reasonable amount of time. The initial plan was to release the phone by the holiday season of this year, but we can now expect to see it early in 2010.

While there has recently been an influx of Android phones making their way to the market, this one will actually be branded by Google, and I think it’ll be what we’ve been waiting for with Android. Much like Apple and the iPhone, these will be the first device where the hardware and software are actually designed and branded by Google.

With such great engineers and smart minds over at Google, I’m sure the hardware on this phone will be among the best we’ve seen packaged with Android. Also, since it will have the power of Google behind it, you can bet it’s going to be a big deal when it’s launched. If you ask me, I’d say that Apple should be watching this closely as Google is certainly going to be eyeing them as their main competition. With an open source operating system and choice of carrier, Google has the potential to make a very strategic move against Apple and AT&T here, and I’m sure they will.

This is getting good.

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It wasn’t long ago that AT&T filed a lawsuit against Verizon claiming that their “There’s a map for that” advertisements were both untrue and hurtful in a tremendous amount to their company. That didn’t stop Verizon from publishing more ads shortly thereafter. Now, via an official response for Verizon, we may understand why. Take into account the following from Verizon’s response:

AT&T did not file this lawsuit because Verizon’s “There’s A Map For That” advertisements are untrue; AT&T sued because Verizon’s ads are true and the truth hurts.
...
In the final analysis, AT&T seeks emergency relief because Verizon’s side-by-side, apples-to-apples comparison of its own 3G coverage with AT&T’s confirms what the marketplace has been saying for months: AT&T failed to invest adequately in the necessary infrastructure to expand its 3G coverage to support its growth in smartphone business, and the usefulness of its service to smartphone users has suffered accordingly.

Ouch. Verizon certainly isn’t giving this one up without a fight, and AT&T better be prepared. It’s no secret that many iPhone users have felt the pain of a slow and clogged AT&T network over the past two years, and Verizon is just now beginning to take advantage of that. By this point, I feel as if it may be too late for AT&T to do anything major against these advertisements. If the coverage maps are correct ( I would like to believe Verizon would double check that before publishing such a blatant attack ad), then AT&T can only simply shut up and expand. At this point, they should’ve made plenty of money from Apple’s iPhone, and it’s time to put some of that back into the company and network. Quit complaining and get to work, AT&T, you’re embarrassing yourselves.

Via [Engadget Mobile]

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The idea of tethering coming to the iPhone has been around almost longer than the iPhone itself, and won’t seem to die. In November of 2008, the rumor was it would come at $30 a month with a 5GB cap through AT&T. Yes, that was a whole year ago, and it still hasn’t happened.

Then, in January of 2009, another rumor appeared stating we’d be getting iPhone tethering soon. That was ten or so months ago. All this time, tethering has been available on and off with jailbroken iPhones, which goes to show just how much iPhone users want the feature.

When tethering does come through AT&T, it will certainly come at a price, which may turn some of these users off. That said, notice that even after a year of these rumors, I say “when” instead of “if.” That’s because AT&T’s CEO Ralph de la Vega made the announcement at the Web 2.0 Summit in San Fransisco this month that tethering for the iPhone 3G is coming “soon,” as reported by Appmodo.

While the exact dates of “soon” weren’t defined, I think this time it actually has some truth to it. We’ve waited for more than a year now for AT&T to get their act together and prepare their network, and they’re well aware of our growing impatience. Although I fear that it may harm their network even more, it could cost them more in bad PR if they never even get around to giving the feature a chance. It’s a scary time for AT&T, that’s for sure. For both our sake and theirs (with the probable competition from Verizon), I hope their network begins to improve.

Via [Appmodo]

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Verizon is certainly on a roll with their iPhone and AT&T network attack ads, and it doesn’t appear as if even a lawsuit is going to stop them. In a bold move, they’ve published three more ads directly focused on comparing their phones to the iPhone as well as their 3G network to that of AT&T. The first of these ads takes place on the Island of Misfit Toys, where the iPhone is questioned as to why it is there when it can do so much. AT&T’s coverage map then pops up from the iPhone, and all the toys understand. Quite clever, Verizon.

The other two ads are directed more towards the AT&T network as a whole. They again feature the same blue maps lacking in coverage, as well as the vividly red Verizon coverage maps. On one hand, I think Verizon is being wise in attacking AT&T where they are weak, and where all the iPhone users certainly know they are weak. However, I feel as if they are dropping the ball at the same time. People use the iPhone because it serves their needs, not because they like AT&T. Verizon, Motorola, and Google need to market Droid as a solution to what the iPhone doesn’t do if they want to take any considerable market share from it.

Either way, I think we’ll see more of these ads coming. While Apple hasn’t launched any ads against the Droid or Verizon as they have with Windows 7, I don’t believe they should. This would only prove that Apple sees the Droid as a competitor and would give it more publicity as such. By remaining quiet as they still have the lead, they are doing the right thing. That said, it will certainly be fun to watch what happens out of Cupertino as Droid and Android pick up market share and become more serious competitors.

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The day of the Droid came and left with relatively little press coverage compared to what we’ve seen from the iPhone in previous launches. However, that isn’t to say the Droid isn’t receiving its fair share of publicity, and for good reason. While I haven’t personally gotten my hands on one of these devices, I’ve heard many great things not only about Android 2.0 and the hardware, but about Verizon’s great coverage as well. With a large touch screen and nice camera, it’s not really a surprise that small lines formed by customers waiting to get their hands on one of these.

It’s clear that having the Verizon network behind it, Droid is going to offer more competition to the iPhone than the Pre did on Sprint. However, the Droid phone also has the advantage of having Google and their Android project behind it. And with Google comes the ability to send an advertising message to millions upon millions of people around the U.S. Yes, Google is placing Droid text advertisements on their main home page much like they did when Chrome was released. This certainly can’t hurt.

It will definitely be interesting to watch this one play out. Droid being based on an open platform has a ton of potential, but the iPhone already has a huge user base from being on the market for a longer period of time. What do you think will happen?

Image via [Engadget]

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Currently, Apple’s most affordable model of iPhone is the 8GB iPhone 3G, also known as “last year’s model.” But that could change soon. Pat, I’d like to buy a consonant.

The Boy Genius Report has received a number of unconfirmed tips—along with a few, not so blurry, pics—that seem to confirm that Rogers in Canada is draining their 8GB iPhone 3G stock to make way for the new 8GB iPhone 3GS. I think it’s fair to assume this rumor would apply to AT&T and elsewhere too.

This just makes sense. It’s not like Apple to keep an old model around when they can instead force you to buy a new one.  I’m just hoping this works like Wheel Of Fortune, you know, where the consonants are free!  I’d say there’s at least a fair possibility that a new 8GB iPhone 3GS for $99 just like the current 3G model, but that’s completely my own speculation.  I also wouldn’t be surprised to see an extra $49 tacked on.

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Verizon first attacked Apple’s iPhone via an advertisement for the new Motorola Droid phone they will be selling this month. Then, they proceeded to attack the iPhone’s carrier, AT&T, with their “there’s a map for that” advertisements. While Apple didn’t take any sort of action against Verizon that we know of, it appears as if AT&T isn’t going to stand for it. According to Engadget, they have taken action through complaint letters and are now suing Verizon for their advertisements.

AT&T’s complaint said this about the issue:

In essence, we believe the ads mislead consumers into believing that AT&T doesn’t offer ANY wireless service in the vast majority of the country. In fact, AT&T’s wireless network blankets the US, reaching approximately 296M people. Additionally, our 3G service is available in over 9,600 cities and towns. Verizon’s misleading advertising tactics appear to be a response to AT&T’s strong leadership in smartphones. We have twice the number of smartphone customers… and we’ve beaten them two quarters in a row on net post-paid subscribers. We also had lower churn—a sign that customers are quite happy with the service they receive.

The real problem here was that although AT&T may not have as expansive a 3G network, they do have a 2G network that covers a much broader area than shown in the advertisements maps. Apparently Verizon has already changed some of the wording on their ads to make AT&T a little more happy, but it doesn’t appear as if they will be fully content until these ads either stop airing or take into account their whole network. I can’t wait to see what ends up happening here.

Via [Engadget]

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Dear Verizon,

First, let me congratulate you on a fairly witty pun-based ad campaign. You’re making a point, and with quite a bit of gumption, given the lack of cool smartphones available on your larger-than-life network (several blogs have called you on this). It’s also interesting to see how both you and Microsoft have tacitly conceded that Apple now owns the conversation; imitation, however sarcastic, is still the sincerest form of flattery. Second, I’ll acknowledge our past relationship; nine good years with excellent coverage and several fairly decent phones. You still insist on sending me flyers trying to lure me back, but I’m just not that into you right now. And here’s why:

Recently, I took a trip to NYC that was going to involve some serious subway time. It was a personal trip, so I couldn’t expense cab rides all over, and I was staying in New Jersey, so my options for getting into the city were fairly limited. But you know what? There’s an app for that! Called HopStop, it’s an on-the-go version of the excellent HopStop.com website, which provides public transit route planning for several global metropolitan areas, including NYC/NJ. The website wasn’t always available, given that much of the subway runs underground, and reception in NYC can be somewhat spotty, but luckily the iPhone app caches your trip, so you can verify your directions even deep underground. The interface is also cleaner, with less text entry and no zooming required to navigate. And this, dear Verizon, is why I just can’t be with you right now.

You see, it’s not the size of your network that matters. It’s how you use it. (I can use clichéd puns, too!) And your woeful selection of crippled phones really just doesn’t cut it.  The bullet point list of features and capabilities on the phones/your network are worth next to nothing compared to a phone that actually changes the way you live your life.  AT&T’s poor service is a stumbling block, yes, and I’ve had several not-so-nice thoughts about them when my calls are dropped/won’t go through or I have no service.  But I’m staying in this relationship because I’m getting what I need.  Your new Android-based phone is interesting, and I might be tempted to look at it, but doubtless it carries some dumb limitation.  Why couldn’t I get my pictures off my old VZ phones without using your expensive MMS service?  Why were my ringtones locked to one phone, and one phone only?  Why were the Bluetooth features of all your phones artificially limited to the point they were virtually useless?  Maybe we could enroll in couples therapy and get to the root of your control issues?

Really Verizon, the problem here is that with the iPhone, I’m happy.  Why?  Because whatever I could conceivably want/need/wish to accomplish or dream of doing is possible.  When Apple & AT&T say, “There’s an app for that”, they’re really saying, “You want it, you got it.”  In this relationship, I feel an adequate sense of give and take.  I give them my money, and in return, I get a phone that gets me, makes my life easier, better, more entertaining, less spastic (flailing to get a cab in Times Square is, let’s face it, not at all dignified).  As a sidebar, the maps app built into the iPhone has some pretty sweet NYC transit direction abilities as well, though they’re not as good with covering other places I frequently visit (Washington DC and Atlanta, mainly).  When I was with you, I felt like you took took took, and all I got in return was a semi-functional hunk of plastic that always looked better in the store than it did when I brought it home.  So you can keep your map.  We can still be friends, but please, stop with the mailers trying to win me back.  I’ve moved on, and quite frankly, you’ll get me back when you pry my iPhone from cold, dead hands.

Yours most sincerely,
~Aaron Kraus

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According to the Associated Press, the iPhone has finally officially launched in China, with one major feature missing: built-in Wi-Fi. A ban on Wi-Fi by the Chinese government had forced Apple to produce iPhones with Wi-Fi removed specifically for sale in China, but the ban on Wi-Fi had been lifted shortly after Apple started producing the modified iPhones.

With the lack of Wi-Fi connectivity in the iPhones that had gone on sale today, many are speculating on why the devices remain so expensive. The relatively high price may be due to competition with unlocked iPhones from the United States and other countries that are being sold on the streets for a cheaper price and no contract. The imported iPhones reportedly cost Chinese buyers up to 20% less than the official Chinese version in stores. An estimated 1.5 to 2 million imported iPhones are already operating on China’s Unicom carrier network.

So far, Apple has refrained from offering public sales targets for the Chinese market. A rumor had gone around in the past claiming that China’s Unicom carrier had committed to purchasing 5 million iPhones for sale on its network, although it was quickly denied by a spokesperson for the carrier.

To be honest, if I lived in China, I would most likely buy a 3G S with Wi-Fi on the streets rather than pay 20% more for a legit Chinese iPhone without Wi-Fi capabilities, wouldn’t you? Leave feedback in the comments.

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It has been confirmed by Verizon that their new Droid phone, the device in the iPhone attack ads, will be available on November 6th for a price of $199 with a 2 year contract and $100 mail in rebate. The hardware, which has been created by Motorola, will be the first phone on the market to run Google’s Android 2.0 and will feature turn by turn navigation via Google Maps for free. However, that’s not where the benefits over the iPhone stop. This device also has a 5 megapixel camera with a flash and auto focusing capabilities that is also able to capture video. On top of that, users will be able to multitask applications on the 3.7” that contains more than 400,000 pixels. Sounds nice, ‘ey?

This device, much like the Pre, is being vigorously compared to the iPhone in all aspects. With a required $39 voice plan and a web and email plan for $29 per month, the monthly cost of this device may be less of that on the iPhone as well, with the power of Verizon—not AT&T—behind it. With that and the advantages I mentioned earlier, I think this device has a much better shot of success versus the iPhone than the Pre did. The Pre was good, but the Droid is a phone I would actually consider purchasing. It’s certainly going to be fun to watch what happens next week with this phone coming to the market.

Via [TechCrunch]

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AT&T has released its earnings report for the third quarter of 2009, and among the information was the fact that 3.2 million iPhones have been activated throughout the quarter, the highest quarterly total in history. The new record tops the 2.4 million iPhones that were activated in the third quarter of 2008, after the release of the iPhone 3G. Among noteable information within the earnings report, iPhones accounted for an incredible 74% of total AT&T postpaid activations of “integrated devices” that have either a physical or virtual keyboard in addition to voice capabilities. Nearly 40% of the iPhone activations were from new AT&T customers, which is consistent with previous quarterly performances. Below is a snippet from the earnings report:

- Strongest Integrated Device Quarter To Date. Postpaid 3G integrated wireless devices added to AT&T’s network in the third quarter totaled 4.3 million, the largest quarterly increase in the company’s history. Over the past year, the number of postpaid integrated devices on AT&T’s network more than doubled, and at the end of the third quarter, 41.7 percent of AT&T’s 63.4 million postpaid subscribers had integrated devices. The average ARPU for integrated devices on AT&T’s network continues to be 1.8 times that of the company’s nonintegrated-device base.

- Record iPhone Activations. AT&T’s third-quarter integrated device growth included 3.2 million iPhone activations, also the company’s largest quarterly total to date, with nearly 40 percent of the activations for customers who were new to AT&T.
Overall, AT&T experienced a net gain of two million wireless subscribers, the highest such third-quarter additions in company history, and also reduced customer churn levels to record lows.

Apple had also reported earlier this week as part an earnings announcement that it had sold a total of 7.4 million iPhones during the third quarter. All of this evidence seems to support the thought that Apple will continue to do very well for the fourth quarter and throughout the next year.

Read [ZDNet]

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Droid, a new phone emerging in the mobile marketplace through a cooperative effort with Verizon and Motorola, is turning out to cause quite a ruckus as the first true iPhone competitor. At least that’s what the companies are trying to get at through their clever new commercial that flat out attacks the weak points of Apple’s iPhone. The ad, which is 30 seconds in length, starts off with an Apple-esque song and black text that drops down on a white background reading “iDon’t run widgets,” “iDon’t allow open development,” and “iDon’t have a real keyboard,” and such. It then ends with a strange graphic reading “Droid does” with a date of November. Check it out below.

While some of these arguments are weak, they do sum up the complaints of the iPhone thus far. For instance, it doesn’t have a real keyboard or allow open development, but I wouldn’t say those are show-stoppers. For one, the system that Apple has for developing apps, although flawed, has been both extremely successful and interesting to watch. Furthermore, I don’t quite understand how the iPhone doesn’t run widgets, as that’s basically what apps are (unless the ad means background widgets). Either way, they also mention that the iPhone doesn’t run simultaneous apps, which is a valid argument.

With an ad like this, the Droid phone is really going to have to deliver and put its money where its mouth…err, microphone is. The iPhone is dominating the smart phone market at the moment, and that doesn’t appear to be slowing down. That said, TechCrunch has a post claiming this phone is the “real deal,” and is “the first phone that will pose a significant threat to Apple’s iPhone.” I’ll be watching this one closely.

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Verizon Wireless has already announced they are expecting to see Apple’s iPhone on their 4G network next year. Now, the rumor is that Verizon and Apple are already working together in testing the new iPhone (probably a prototype) on Verizon’s 4G Long Term Evolution network.

MacTouchUser links to a report on Fone Frenzy that states Verizon Wireless’ CEO, Lowell McAdam, has made several visits to Apple’s headquarters in Cupertino, and that Apple is indeed testing a CDMA iPhone on Verizon’s 4G LTE network. MacTouchUser also speculates that Verizon and Apple are working together to test the rumored Apple Tablet, although the reliability of that claim is questionable.

If these rumors turn out to be true, that is very good news for consumers; it means competition, and corporate competition is almost always a good thing. Verizon is also said to have the best network in the United States, and the iPhone is also considered by many to be the best smartphone available to date. Verizon Wireless will be the first carrier in the United States to roll out LTE-based 4G network, which promises to be 10 times faster than current 3G services and to include low latency, enhanced security, world-wide roaming, and more, beginning in 2010.

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Apple has pulled Elgato’s EyeTV app for iPhone from the App Store. Why? I like to think it’s because the app was too awesome, but they say the official reason is due to its hidden ability to stream live TV over 3G. Mind you, EyeTV for iPhone doesn’t actually appear to stream live TV over 3G to the casual user. In fact, I was unable to verify this feature myself until…

Sorry, I’m back.  I just had to check “something.”  Like I said, it’s not immediately apparent how to get this to work.  So let me tell you!  When the notification that you aren’t allowed to do this pops up, all you have to do is miss the “OK” button and tap the text above it instead.

The whole business here is actually some leftover testing code that was never removed before submission being submitted to the App Store.  They weren’t trying to circumvent AT&T, but it seems they have done so by accident. Elgato made a Press Release today about all of this silliness, and here it is for your reading pleasure:

Some test code that enabled live TV streaming over the cellular network was accidentally left in the the EyeTV App.  Apple requested that we remove the code since their agreement with AT&T does not allow redirecting TV signals over the cellular network.  The code was removed and a 1.0.1 version of the EyeTV app was submitted.  We expect EyeTV to return to the App Store when the 1.0.1 version is approved.

Honestly, this is quite silly, and here’s why.  The EyeTV app streams prerecorded videos over 3G, so why the big fuss over live TV?  Does it really matter that it happened only a few seconds ago?  The video still has to be converted by your machine.  The process of streaming prerecorded media and live media are very much the same.  As far as I can tell, no more or less data are transmitted with either method.

While AT&T is not directly to blame for the pull from the App Store, I’d like to place all of the blame right on their shoulders.  Once again, AT&T is letting their true colors show.  They might be cool with you making VoIP calls over 3G, but darnit, if you want to watch live TV, you’re SOL. Just to say thanks, I totally won’t be streaming live TV to my iPhone all night. Remember, the “upgrade” will likely make it to the App Store soon. Though, AT&T likely won’t disconnect your iPhone if you don’t upgrade. Just sayin’.

UPDATE:  Looks like the original version of EyeTV is once again available on the App Store.  A change of heart from AT&T?  Probably not, but you might want to grab it ASAP if streaming live TV is your thing.

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Did that blow your mind? Because it just happened. I can’t believe it either.

I think it’s best if you heard this straight from AT&T because, honestly, I’d call BS from anyone else. Why would you be any different? Here’s a portion of the Press Release:

AT&T* today announced it has taken the steps necessary so that Apple can enable VoIP applications on iPhone to run on AT&T’s wireless network. Previously, VoIP applications on iPhone were enabled for Wi-Fi connectivity. For some time, AT&T has offered a variety of other wireless devices that enable VoIP applications on 3G, 2G and Wi-Fi networks. AT&T this afternoon informed Apple Inc. and the FCC of its decision.

It seems AT&T finally warmed up to the inevitable, and it’s not that surprising. Net neutrality is all the rage right now, and a decision like this makes AT&T more open about its network. They might have been be forced into something similar as a result of the proposed FCC rules about net neutrality. (Net neutrality means that service providers would not be able to block certain applications from use on their networks.)

Earlier this week, you may have been slightly tipped off—as I was—by the approval of the Vonage app for iPhone.  It allowed for VOIP calls over cell networks, including AT&T.  So, I guess we should have seen this coming. No word on whether AT&T will (eventually?) allow apps such Slingbox, but net neutrality rules may force them to in the end.  In any event, this is a step in the right direction.  I wonder how long this change will take to make its way to the App Store.

Read finance.yahoo.com

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Back in the day (way back, when it was still Apple Computer, Inc.), Steve Jobs whipped a Macworld Keynote audience into a frenzy by announcing a revolutionary iPod, communication device, and cellular telephone: the iPhone. Removed from the reality distortion field, and a few thoughtful blog posts later, people began to wonder about the strategy that Apple was pursuing. Originally, apps on the iPhone were a no-no. Steve pontificated the wonder of web-based applications, like Facebook and Flickr; the iPhone’s killer apps were to be accessed via Safari. This was an interesting, and obviously ill-fated strategy, but several events lately set me to thinking:

1. A friend’s iPhone 3G started acting up so badly that the Genius Bar is replacing the phone and she is going to start over totally fresh. Restoring from backups wasn’t fixing the issue, which puzzled me and the Genius. Was there a misbehaving app on the phone? Or was some data (her contacts, iTunes library, etc.) to blame? It took me back to the days of OS 8 when your desktop would conk out and you had to either do the half-split troubleshooting routine or use Conflict Catcher to find the misbehaving OS extension. Ah, memories.
2. This cnet article about the impact of the iPhone on AT&T’s brand popped up in one of my RSS feeds. In it, author Marguerite Reardon lays out several interesting arguments about why iPhone users are peculiar compared to their smartphone peers and cell phone brethren. Fully half of iPhone users are in the unique conundrum of loving their device and hating the network (see the published CFI Group study).  Marguerite points out, quite rightly so, that many of us tend to be less-loyal from the start, due to the fact that we jumped ship from other carriers to get the iPhone in the first place.  More affluent users (one of Apple’s core markets) in urban areas tend to both a.) receive fairly abysmal 3G reception, and b.) share their experiences (blog about something and in less than 24 hours the whole world knows about it).
3. AT&T’s commercials of late have been upbeat, happy, look-at-us-investing-even-during-a-recession bits of kitschy drivel.  They contain talk of ushering in new technology and implementing more sustainable business practices, peppered liberally with messages of increased network capacity and a constant dedication to making the “nation’s fastest 3G network” faster, better, more reliable, able to slice, dice, even julienne potatoes…the only problem is, those of us who actually use this network don’t quite feel that it deserves such accolades.  At least once a week, many iPhone users in the Washington, DC metro area are forced to switch off 3G in order to carry on a conversation without the call dropping (even on major roads in the area).  I am one of them, and I have shared the disable-3G tip with my iPhone-using friends, to help save them the frustration of endless redialing when chatting.  Cognitive dissonance between happy commercial land and frustrating reality land causes me to curse AT&T at least weekly—not a good PR situation.

So, in light of the current state of the network, and having learned from past Mac OS lessons, I have a simple question to pose: Could Apple’s original web app strategy have worked?

That Would be a No

Remember, if you will, that the original iPhone was not even privy to the fledgling 3G network of AT&T (still in its merger period with Cingular).  Fire up the Flickr application on your phone today, and see how long it takes to load a picture from somebody’s photostream.  Or try to browse somebody’s facebook wall.  Multiply that time by about two and think about doing that all day long using the EDGE network.  Not to ding Mr. Jobs on his visionary credentials, but how would the iPhone, forced to load both application interfaces as web pages and their associated data, ever have been a success without 3G?  Let us not forget, in addition, that even after the advent of the 3G iPhone, it still took AT&T more than a year to roll out iPhone MMS.  Rather than provisioning both pictures and videos, would it not have been a better compromise to enable picture-only messaging for both 3G and 3GS users?

Facebook was one of the early adopters of the iPhone, providing a specialized site designed for the iPhone’s screen and relatively low bandwidth capabilities.  But how many non-startup, non geek-chic companies would have jumped on board?  Given this dearth of applications, would the iPhone ever have reached critical mass?  Any day now there will be a press release telling us that the App Store has hit the 100,000 mark, but under the former web-app strategy, it is doubtful the iPhone would have broken through as the “gotta have” mobile platform.  For 99 bucks a year, any creative developer can become the next hit app maker—there is a whole class of development that simply never would have happened if every developer had to set up his own cloud-enabled web app for iPhone users.  And the gauntlet Apple has thrown down to Nintendo and Sony?  Yeah, right.  Try playing a game when 20 frames per second are streaming over the EDGE network (go ahead, we’ll wait a couple years for you just to load level one).

But Then Again…

Apple is certainly no stranger to bleeding-edge innovative moves.  Look at the company’s history: the mouse, USB, WiFi…before they became stock standard, Apple had divined the future for us.  Not to say that Apple is always right on the money (NuBus, anyone?), but it is a pretty safe bet that Steve Jobs’ crystal ball is better than yours.  The competitive landscape of the PC industry is slightly different from the mobile phone industry, and these features were technological advances, rather than crippling Achilles’ heels to their devices.  Apple could have been on the cusp of the cloud computing wave just as they were ahead of the curve on WiFi with the original clamshell iBooks.  Unfortunately, that original AirPort card did not hurt the user experience if no WiFi was available; in the case of a web-app centric iPhone, the slowness and unreliable nature of AT&T’s network likely would have made the user experience unbearable.  On the plus side for Apple, there is evidence that the market would have waited long enough for AT&T’s network to catch up enough to make the iPhone a serious competitor.  Where is the real competition to the iPhone in terms of usability and interface design?  Steve Ballmer may have laughed off the iPhone in 2007, but even now near the end of 2009, Microsoft still has no clear challenger to rival it.  Android is creeping along, but Google is in a similar position of trying to build critical mass for an app store; had Apple not introduced the concept, the web-app centric model likely would have been copied on other devices.

In the end…

It all boils down to speed.  iPhone users approach their phones differently…Facebook, Twitter, sharing life and times, texting…these are what the iPhone is for.  Not making phone calls (though that is a big part of it).  Cell networks were not designed to be Internet-on-the-go providers, and yet. that is what they have become. Whether AT&T likes it or not, they are merely a conduit, rather than a provider of services like mobile TV or some half-baked music service.  Steve Jobs cited delays in releasing an iPhone SDK related to ensuring stability and security (like my friend’s misbehaving iPhone), but we, the iPhone using public, seem to care more about flexibility.  The AT&T exclusivity really does hold back the iPhone, in spite of the benefits of the full SDK.  Imagine how much worse it could be if you still needed to go through Safari to get to cool iPhone stuff!

The good news, and something that Marguerite points out astutely in her article, is that iPhone users tend to lay all the credit for the iPhone on Apple, and blame for the lousy service on AT&T:

“iPhone users love Apple,” Adler said. “They are loyal to the brand and they love the device and all the great applications. All they associate AT&T with is dropped calls, a hard-to-access 3G network, and high network fees. They even make iPhone users pay extra for SMS. It seems crazy to me that AT&T hasn’t done anything to throw customers a bone to say, ‘We love you as a customer.’”

iPhone users will blame AT&T every time a call gets dropped or an application fails to load data.  Had Apple enforced the web-apps only policy, the sheer breadth and quality of available apps would have been less, hurting the user experience (and reflecting poorly on Apple).  Smart move to whoever finally got the green light for the SDK and App Store.  Marguerite also includes a delightfully mindless quote from an AT&T exec, “The surest indication of customer satisfaction is churn,” AT&T’s Siegel said. “And ours is at record-low levels”.  Well churn (number of customers leaving) may indeed be low, but remember: you’ve got those users by the you-know-whats, in the form of a 2 year contract and pretty steep penalties for early termination.  So pick a number that isn’t artificially high—like how often your iPhone users see the words “Call Failed”—to measure satisfaction.

Apple may indeed have been able pull off the iPhone without the App Store, but it undoubtedly would not have been the runaway hit it is today.  Minor inconveniences can cause occasional headaches, like an app causing some random lockups of a phone or loading data too slowly, but the overall usability remains quite high.  It is tough to imagine an iPhone without native apps being quite as cool…quite as desireable…quite as usable!  So kudos to Apple for listening to customers, kudos to all the developers who feed us a steady stream of addictive games and pointless new ways to waste time, and some grudingly-given kudos to AT&T for continuing to invest in expanding its network.

Caveats abound, though. First and foremost among them? Stop advertising a better network, AT&T, and get on with building it!!!

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A lucky few already have MMS on the iPhone, but the rest of us have been waiting for a while now as other carriers have managed to push it out on their network. As per the AT&T announcement a while back, this Friday, September 25th will be the official date that this feature is released via a software update. That is coming up quickly, and AT&T has released some information on their Facebook page reading:

MMS Update: We know you’ve been eager for this service so we wanted to offer a quick update on the launch plans for MMS on Friday, Sept. 25. Late morning, Pacific Time, on Friday, the new carrier settings update enabling MMS should be live and ready to download through iTunes. We’ll provide the steps and all of the details you need right here at that time.

Judging by the 171 “Likes” and 100+ comments at the time of this writing, people are getting pretty excited about this already. I, for one, will very much appreciate it, especially considering it will come free for those who already have unlimited texting like me. While Apple has been ready for this feature since the 3.0 update, they have been waiting for this day to enable that feature. Who’s excited?! Yes, I know, most phones have had this feature for years. But still, I seriously can’t wait.

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