Is AT&T Failing to Invest Enough in Their Network?

Posted on 18 Dec 2009 by PatrickJ

ATTCapex

As most of you have probably seen all over the web this week, Fake Steve Jobs has been slamming AT&T for their recent statements about possibly looking at limiting data usage in future for heavy data users.

Earlier in the week he was even calling for a mob effort to bring down AT&T ‘s network today “ Operation Chokehold “ though he has since backed down on that and suggested other methods of protest against the carrier.

While I was never in favor of the effort to bring the network down, I do think FSJ has made some very good points about how short-sighted AT&T has been in their decisions about investment in their network vs. maximizing short-term profits.

Here are some of the points that FSJ has driven home in some of his recent posts “ including this one “ that really hit home on this subject:

– AT&T ‘s profits from data usage have been soaring ever since the iPhone hit their network over the last half of 2007

– Despite the huge profits growth due to that usage, they have spent less in each quarter since then, than they did after the launch of the first iPhone

– AT&T have complained about 3% of smartphone users chewing up 40% of bandwidth on their data network.   FSJ “ quite rightly “ points out that very soon that 3% will likely be 30% and data usage will continue to accelerate at far higher levels than now. 

Gizmodo has a great post up that reinforces these points with some slides that show some striking numbers in relation to this subject.  Check it out at:

http://gizmodo.com/5428717/att-has-spent-less-on-network-construction-every-quarter-since-the-iphones-launch

Let us know what you think on this subject.  Is AT&T doing enough to support and build their network?  Should there be limits in future on the biggest ‘data hog ‘ users?  Are you dreaming of switching to Verizon?

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One Response to Is AT&T Failing to Invest Enough in Their Network?

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