AT&T Chief Operating Officer Randall Stephenson told the Financial Post that he was “hoping” for a million units at launch.
“Our expectations are good. Our testing has been good,” said AT&T Chief Operating Officer Randall Stephenson. “The iPhone is on target to launch in June.”
“We’re sorting through that right now,” he said. “We got a million people waiting to buy it so we’re hoping we get a million.”
If you are one of those 1 million, don’t hold your breath.
Cingular has announced some amazing figures today detailing exactly how much they have been spending improving their cell phone network in the US.
Apparently they have invested $1.3 billion in upgrading and expanding the service in the LA area alone since 2005. The total bill for the US is around $6 billion per year.
The investment in LA consisted of 257 cell sites as well as expanded coverage and enhanced network capacity. They are adding 5 new cell sites every week and have added 560 in the last 2 years.
Andy Shibley, Cingulars LA manager, commented:
The past two years were unprecedented — investing almost $1.3 billion to deliver a quality wireless experience to our customers here. Our wireless network is world class and second to none. The major expansion we completed was an extraordinary achievement that enables us to provide exceptional service for our customers today and into the future.
Now as part of AT&T, we will continue our momentum and focus on delivering a strong network, innovative wireless products and services and a quality customer experience in 2007.
Cingular now has more than 45,000 cell sites, more than any other carrier in the US.
Talks between Qualcomm and Nokia have taken a turn for the better today after AT&T made an important decision to use Qualcomms mobile TV technology.
AT&T own Cingular, who already use mobile phones manufactured by Nokia, and intend to start using Qualcomm’s MediaFlo mobile television chips shortly.
Qualcomm Chief Executive paul Jacobs hopes that the development could help bring the two companies together. Nokia and Qualcomm have been negotiating to renew a technology license which expires in April.
Jacobs commented:
The MediaFlo deal with Cingular is a new fact. Maybe there’s a way to find some new common ground there. I’m still hopeful we’ll find some solutions that don’t require a judge coming down and imposing something on us, but as I said the teams are still locked,” he said.
Update: From reading other sources it seems that the talks have not actually been helped just yet. The story is that they MAY be helped by this announcement.
Qualcomm Chief Executive Paul Jacobs said on Thursday that talks with Nokia on renewing a technology license may be helped by AT&T’s decision to use Qualcomm’s mobile television technology.
AT&T’s Cingular Wireless, which already uses GSM mobile phones from Nokia, plans to add Qualcomm’s MediaFlo mobile TV chips to its phones.
The move could be a way to bring Nokia and Qualcomm together, Jacobs said at a Bank of America technology conference in New York.
It’s not just the revolutionary features that are causing the iPhone to make waves in the mobile world. Several analysts are also pointing to the way that Apple has launched the product, without making any concessions to Cingular, possible changing the market forever.
Apple forced Cingular to handle the release of the iPhone in totally the opposite way to a normal phone release. Usually the network is in control and bundles browser software and even has branding on the phone casing. With Apple they were in control and didn’t want any interference from Cingular.
Apparently Apple has negotiated to a deal to share a portion of the monthly revenues from subscribers, in contrast to the way manufacturers and retailers do business with mobile networks.
A report in the WSJ states:
Apple bucked the rules of the cellphone industry by wresting control away from the normally powerful wireless carriers. These service providers usually hold enormous sway over how phones are developed and marketed — controlling every detail from processing power to the various features that come with the phone.
Interestingly only 3 senior executives at Cingular were allowed to see the iPhone before it was launched.
Cingular, the US network with rights to the iPhone, has lost a battle with a 77 year old pensioner over $31,000 worth of calls he says he didn’t make.
When a large bill arrived for 4,000 calls from Nicaragua Oliver DeSofi contacted Cingular to complain of fraud.
Cingular tried to collect $31,000 until an investigation by a large newspaper found that he had never been to Nicaragua and the calls were fraudulent.
In cases like this which are bound to make the national news, it is amazing that a company with a marketing budget of well over $100 million choose to pursue innocent people when they clearly have no chance of winning. Even a quick investigation would have revealed that Mr DeSofi hadn’t been to the country in question and that the calls were fraudulent.
Mr DeSofi has now had his account reinstated and credited with $120 as a goodwill gesture. Cingular spokeswoman Kelly Starling commented:
We are researching how it was handled from beginning to end
Cingular Wireless, the largest mobile phone network in the US has reported increased profits of $782 million compared to $204 million for the fourth quarter last year.
Cingular ended the quarter with 61 million customers and reported a 10.2% increase in revenue to $9.8 billion.
A quick post to any readers who want to jump ship from a Cingular contract. The cell phone company is changing the price of text messages from 10 cents to 15 cents on 21st January 2007.
This means you can cancel your contract without paying any fees.
Check this out from Cingulars terms and conditions:
IF WE INCREASE THE PRICE OF ANY OF THE SERVICES TO WHICH YOU SUBSCRIBE… YOU MAY TERMINATE THIS AGREEMENT WITHOUT PAYING AN EARLY TERMINATION FEE… PROVIDED YOUR NOTICE OF TERMINATION IS DELIVERED TO US WITHIN THIRTY (30) DAYS AFTER THE FIRST BILL REFLECTING THE CHANGE.
Our advice if you want to cancel is to contact Cingular and be very persistent. Don’t take no for an answer.
