Feb 2, 2010

AT&T to invest $2B in mobile network



So I found this article on cnn.com and it made me laugh, hence the lol cat image. It's about how AT&T is going to invest an additional 2 billion dollars this year compared to last year in their mobile network. Upgrades include "...2,000 new cell sites and [an] upgrade [to] existing cell sites with three times more fiber links than it had in 2009." I think that it's about damn time, this should have been done a long time ago.

There are two concerns that I have with this though, who is going to pay for these upgrades? I'm really glad I'm not an AT&T customer, but I have friends who are and I think that the extra expenses will be passed on to them. We all know that they are not going to let these upgrades eat into their precious iPhone service income. The other thing I'm curious about, if they are going to pass on the expenses to their customers then how do they expect to remain competitive in a market that is full of companies looking to eat at their bottom line. I believe that Verizon and T-mobile are already eating away at them because of the Android platform and what seems to be, more fact than opinion, that they have a better network than AT&T.

To answer my own question it'll be with the iPad, which they mention in the article that they will be the exclusive carrier to provide 3G wireless service. I don't think they are going to see the huge sales that they saw with the iPhone because a lot of customers are already boasting that the iPad is just a larger version of the iPhone. The next couple of years will be extremely interesting in the mobile world, I think that things will get even more competitive then they already are and companies will have to maintain a good balance of being able to offer the best technology while keeping their prices lower then the competitor.

4 comments:

  1. I am also glad I am not on that service, for I have sprint. I am sure they are going to raise the fees for their customers a couple bucks a month more. A couple of bucks adds up is the only problem. When you do that, it is always risk of losing business.

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  2. Yeah At&T better invest in mobile networks because i'm hearing how bad their service is and they are expensive on top of that. At&T needs to step it up butyeah this will probably cause users bills to increase.

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  3. As a former Verizon employee, I first hand that the landline phone is on life support. The investment into wireless service is just the way the industry is goiing. Eventually I feel there will only be wireless service.

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  4. Too little too late for me, I am afraid... unless a new iPhone comes out... you know.... soon... or is announced... then ATT may suddenly seem a little better and brighter.

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