The iPhone Revolution Will Have to Wait For the Right Network

I just bought a Blackberry 8830 from Verizon (VZ), forgoing the opportunity to be among the first Apple (AAPL) iPhone owners. This decision surprised me because I had been eagerly looking forward to the iPhone after praising it as a truly innovative product, despite much tech geek snarking.

And now that the mainstream tech pundocracy has weighed in, it appears that the iPhone does indeed live up to expectations — mostly.

Two minor issues that contributed to my decision were the lack of a mechanical keyboard and the lack of push email. But I could have gotten over these. For me, the big deal killer was the network, i.e. the iPhone is only available on AT&T/Cingular.

As Walt Mossberg and Katherine Boehret put it:

But the iPhone has a major drawback: the cellphone network it uses. It only works with AT&T (formerly Cingular), won’t come in models that use Verizon or Sprint and can’t use the digital cards (called SIM cards) that would allow it to run on T-Mobile’s network. So, the phone can be a poor choice unless you are in areas where AT&T’s coverage is good. It does work overseas, but only via an AT&T roaming plan.

In addition, even when you have great AT&T coverage, the iPhone can’t run on AT&T’s fastest cellular data network. Instead, it uses a pokey network called EDGE, which is far slower than the fastest networks from Verizon or Sprint that power many other smart phones. And the initial iPhone model cannot be upgraded to use the faster networks.

I have used Verizon (VZ), T-Mobile, Sprint (S), and Cingular/AT&T in the Washington, DC metro area and in many other cities — Verizon kills the competition. That’s why they can afford not to get taken to the cleaners by mobile device manufacturers offering hot new phones. The reduction in dropped calls and dead zones with Verizon is simply astonishing — it’s as close as a mobile network comes to actually working. And I need my mobile device to function as PHONE as much an Internet device.

Bottom line is: The network MATTERS — a lot. It matters for voice and it matters for the ultra-hyped mobile web. Verizon’s high speed network IS faster — it’s not full broadband speed, of course, but it blows away the slower networks I’ve used, i.e. the kind of slower network the iPhone has with AT&T.

So much of the internet's promise went unfulfilled in Web 1.0 because the network simply wasn’t ready. Buying an iPhone with AT&T would be like buying a laptop that only supports dial-up.

I still believe the iPhone is a revolutionary product. The Blackberry is a highly functional business device, which is no small accomplishment, but the 8830 doesn’t fundamentally change the way I work compared to the older, more primitive Blackberry I had been using.

The iPhone will revolutionize the mobile web use, including mobile video — but without a network to support it, the revolution is not happening just yet.

Comments

[Tom B:]

Maybe in a few years ATT will buy Verizon. It would please me; as an unwilling Verizon customer, I totally despise them and their horrid phones and horrid customer service.

2007 Jun 27 09:06 AM

[David Lentz:]

Uh, Thomas -- be careful what you wish for. AT&T has disgruntled "customers" who are wishing exactly the opposite (however unlikely), to be able to use Verizon's FiOS and high-speed cellular networks. Despite decades of phony "deregulation" in the phone industry (where the only things deregulated have been profits), we still don't have any real competition in that industry. It shows when you compare the US telecomm industry to that in other nations. Using just about any scale or metric you want, the US is falling farther and farther behind.

We'll have competition when I can choose between AT&T and Verizon for every aspect of my communications business, including the landline to my house.

2007 Jun 27 10:15 AM

[Tom B:]

"It shows when you compare the US telecomm industry to that in other nations. "

And our internet speeds suck compared to many countries in Asia and the EU, also.

Unfortunately, many American companies spend more buying lobbyists and Congressmen than on R&D. Look at Ford and GM-- instead of addressing the obvious fact that they aren't making any more dinosaurs to generate new fossil fuel reserves, Ford and GM spent decades pushing gas-guzzling Behemoths while the Japanese quietly laid the infrastructure for the future (hybrids and the like). I remember my first trip to Europe in '93. I was amazed at how much MORE choice they had for motor vehicles.

2007 Jun 27 10:24 AM

[Werlingdervish:]

I live in central, Arkansas

According to the ATT coverage map of DC you have better coverage than I do. I had Cingular/ATT for several years and the only bad coverage I had was out in the Arkansas countryside and ironically at my suburban house in a nitch between two steep hills. Even than a change of phone solved the problem.

I recommend people waiting on the reviews to come out on iPhone's antenna reception. It may well be better than most or fixed with a software update. Maybe you are only referring to the high-speed ATT cellular network.

ATT's coverage:
www.wireless.att.com/c.../

The auto switching feature of iPhones WiFi service is supposedly good. It would serve well to avoid excessive phone bills. Hotels, Airports, Conventions centers are often well covered. Even in suburbia it is common for residents to allow public access and many cities even have blanket public coverage of the business districts.

Use a freeware or low cost sniffer program, Netstumbler.com, on a borrowed laptop to find where hot zones are on your travel route. Most also show if the Wifi access point is open to the public or password protected. I access my neighbors open Linksys on my MacBook Pro portable on the not so rare occasion when my comcast cable connection is acting up.

2007 Jun 27 10:28 AM

[encinitas1998:]

Has anyone considered the "drop factor"?

Mr. Butterfingers drops his cell phone once a week. It seems to keep on ticking.

This new glass thing, it probably bounces higher but will it work.
This is my most important need-to-know. :)

2007 Jun 27 09:22 PM

[dclawyer:]

I agree with you Scott 100%. I have tried Verizon, Cingular, T-Mo and Sprint in the Washington, DC area and when I travel. My phone calls are noticeably clearer on Verizon. It sounds like a land line. AT&T's network just isn't as good as Verizon. Devices come and go but what matters is the network. I too have an 8830. Verizon is more expensive because its network is better. You can get more minutes for less money elsewhere.

I bought an iPhone today but haven't been able to bring myself to activate it. AT&T has a mediocre network and weak customer service. Verizon and T-Mo have good to excellent customer service in my opinion.

2007 Jun 30 09:43 PM

[joeYYY:]

Interesting that the author fails to mention that the iPhone supports WIFI which is a very good fall back option to EDGE. It should be noted that WIFI is faster than any existing wireless boardband technology (including EVDO and even HSDPA), and is available is a range of locations across the world. You simply can't dismiss this just because VZ is doing it for its phones.

Also, according to recent article I read, AT&T is working to improve its EDGE network. See the following:
www.roughlydrafted.com...

And, speaking about the 8830, as a current BB owner with VZ I was thinking of buying it until I noticed two things:
* It doesn't have WIFI (not surprising as VZ wants you to not think of using any other network than their own)
* Even though it has a GPS, it's not supported when you buy it from VZ (as they promote their VZnavigator service only provided on a selected set of devices).

2007 Jul 02 03:09 AM

[dclawyer:]

WiFi is an excellent feature on the iPhone. How valuable it is depends on how often the user is in a place with a WiFi connection. I use my BB a lot in places (often outside) where there is no WiFi so the benefit to me would be modest, EVDO is available most places I go. And with a BB I never have to depend on slow EDGE speed to get or receive email. OTOH, I don't get rich text on a BB but don't much care. I get the email right away.

2007 Jul 02 04:51 AM