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AT&T Wireless Confirms: Stiffing Customers is Still a High PriorityAT&T Wireless Confirms: Stiffing Customers is Still a High Priority

For any enterprise users who have the misfortune of dealing with the cellular carriers, our headline should come as no surprise. In their ongoing effort to pump every dime out of their customers while making no attempt to deliver any service that might provide a cost advantage to the enterprise, the cellular carriers have once again solidified their position as the Wireless Bell System. With an arrogance born of an entrenched oligopoly for wide area wireless service, the cellular industry continues to flaunt the fact that they have no incentive to do anything that might be to the benefit of their enterprise customers.

Michael Finneran

August 5, 2008

4 Min Read
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For any enterprise users who have the misfortune of dealing with the cellular carriers, our headline should come as no surprise. In their ongoing effort to pump every dime out of their customers while making no attempt to deliver any service that might provide a cost advantage to the enterprise, the cellular carriers have once again solidified their position as the Wireless Bell System. With an arrogance born of an entrenched oligopoly for wide area wireless service, the cellular industry continues to flaunt the fact that they have no incentive to do anything that might be to the benefit of their enterprise customers.

For any enterprise users who have the misfortune of dealing with the cellular carriers, our headline should come as no surprise. In their ongoing effort to pump every dime out of their customers while making no attempt to deliver any service that might provide a cost advantage to the enterprise, the cellular carriers have once again solidified their position as the Wireless Bell System. With an arrogance born of an entrenched oligopoly for wide area wireless service, the cellular industry continues to flaunt the fact that they have no incentive to do anything that might be to the benefit of their enterprise customers.The Latest Indignity- NetShare for the iPhone Now, if we didn't have enough evidence of this, the most recent indignity came this past week from a company called Nullriver. Nullriver developed an application for the iPhone called NetShare, which allowed a user to tether their laptop to the iPhone and use the iPhone's 3G data capability like a modem. Tethering is nothing new, and we've had devices that did this for well over a decade. AT&T does offer tethering capability for the RIM Blackberry for an extra $20 to $30 per month. This was the first tethering solution for the iPhone, and best of all, it was free. "Free" in that you were already paying $30 per month for an unlimited data plan with your iPhone.

The $9.99 NetShare application was posted on Apple's iPhone store on July 31, but it was pulled within hours. It appeared again on August 1 but was immediately withdrawn. On August 4, AT&T clarified the issue: "The iPhone is not intended to be used as a tethering device and we have no plans to offer separate tethering plans for it," explained AT&T spokesperson Wes Warnock. On closer examination, we find the iPhone service agreement does explicitly prohibit tethering, but NetShare apparently slipped by the iPhone police.

Mr. Warnock went on to add " For customers looking for a smartphone with tethering capability, we have many other options," which apparently includes all of the ones they can charge you for.

Well thanks, Wes. I'm glad to know that AT&T has so many ways to stick it to me while making sure that any plan to actually save me some money will be nipped in the bud.

Conclusion- More of the Same AT&T's position would be surprising if it weren't so true to character in the cellular market. The idea of inhibiting the capabilities of mobile devices to optimize carrier revenues has been around since 2005 when Verizon nixed the USB capability in the Motorola V710 so customers could only download songs to the device using Verizon's network service.

None of this bodes well for capabilities like fixed mobile convergence, more functional mobile unified communications, or any of the hundreds of ideas that will allow enterprises to make better use of mobility. It only gives more fuel to the argument that we have to get the carriers out of the equipment business if the mobile industry is going to drag itself out of the stone ages.

While I have never been a fan of increased regulation, it is becoming abundantly clear that the FCC may have to start taking the consumer's side against the cellular carriers. As we have found time and again, technical advance happens much faster in a competitive environment, and while the entrenched interests rail against change, in the long run both they and their customers benefit. So we can be sure that any regulatory action to disentangle the cellular morass will be met with well-funded howls of protest. It's time for the FCC to save the cellular carriers from themselves.

About the Author

Michael Finneran

Michael F. Finneran, is Principal at dBrn Associates, Inc., a full-service advisory firm specializing in wireless and mobility. With over 40-years experience in networking, Mr. Finneran has become a recognized expert in the field and has assisted clients in a wide range of project assignments spanning service selection, product research, policy development, purchase analysis, and security/technology assessment. The practice addresses both an industry analyst role with vendors as well as serving as a consultant to end users, a combination that provides an in-depth perspective on the industry.

His expertise spans the full range of wireless technologies including Wi-Fi, 3G/4G/5G Cellular and IoT network services as well as fixed wireless, satellite, RFID and Land Mobile Radio (LMR)/first responder communications. Along with a deep understanding of the technical challenges, he also assists clients with the business aspects of mobility including mobile security, policy and vendor comparisons. Michael has provided assistance to carriers, equipment manufacturers, investment firms, and end users in a variety of industry and government verticals. He recently led the technical evaluation for one of the largest cellular contracts in the U.S.

As a byproduct of his consulting assignments, Michael has become a fixture within the industry. He has appeared at hundreds of trade shows and industry conferences, and helps plan the Mobility sessions at Enterprise Connect. Since his first piece in 1980, he has published over 1,000 articles in NoJitter, BCStrategies, InformationWeek, Computerworld, Channel Partners and Business Communications Review, the print predecessor to No Jitter.

Mr. Finneran has conducted over 2,000 seminars on networking topics in the U.S. and around the world, and was an Adjunct Professor in the Graduate Telecommunications Program at Pace University. Along with his technical credentials, Michael holds a Masters Degree in Management from the J. L. Kellogg Graduate School of Management at Northwestern University.