Verizon Communications

Reports emerged over the weekend about AT&T forcing its employees into a Sept. 21 to Sept. 30 “Vacation Blackout”.

According to an AT&T sales rep, AT&T staff has been given a vacation blackout from September 21 to September 30, just like Verizon employees. Our source also mentioned that blue carrier employees are undergoing training for an “iconic release.”

“Not true!” we’ve heard. We reached out to AT&T to see what it had to say regarding the above. An AT&T spokesperson told us this morning that there is no company-wide vacation blackout for the end of September.

We also talked to AT&T reps at other stores who implied more people are being put on duty, depending on staffing levels of that particular store, but there is no “blackout.” One New York employee will even sit out the first week of the iPhone launch due to a long-planned vacation.

TechCrunch sourced one rep from a single AT&T store, which may have its own little under-staffed blackout, but, as we heard, the policy is not nationwide.

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J.D. Power and Associates is out with the second half of its 2012 “U.S. Wireless Network Quality Performance Study”, and Verizon once again come out on top for network performance in five of the six regions included in the report. Only second to U.S. Cellular in the North Central region, Verizon posted the best overall network performance among the other carriers in the remaining regions based on 10 key problem areas that could impact the customer experience.

For a 16th consecutive reporting period, Verizon Wireless ranks highest in the Northeast region. Verizon Wireless achieves fewer customer-reported problems with dropped calls, initial connections, transmission failures and late text messages, compared with the regional average. Verizon Wireless also ranks highest in the Mid-Atlantic, Southeast, Southwest and West regions… U.S. Cellular ranks highest in the North Central region for a 14th consecutive reporting period. Compared with the regional average, U.S. Cellular has fewer customer-reported problems with dropped calls, failed initial connections, audio problems, failed voice mails and lost calls.

The study also covered the customer experience specifically for data-related problems. Not surprisingly, LTE device users experienced significantly less issues than older 3G devices like the iPhone:

The study finds that the number of data-related problems, especially those related to slow connection speeds, is significantly lower among customers using 4G LTE-enabled devices than among those using devices with older 3G/4G technology standards, such as WiMAX and HSPA+… For example, among customers with 4G LTE-enabled devices, the problem incidence for excessively slow mobile Web loading is 15 PP100, compared with the industry average of 20 PP100. Furthermore, the overall problem incidence for excessively slow mobile Web loading is even higher among customers with WiMAX and HSPA+ technology

Based on responses from over 26,000 U.S. wireless customers, the report explained how network performance was calculated:

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Verizon iPhone Personal Hotspot settings (Image: TechCrunch)

Verizon was fined a measly $1.25 million today for blocking access to tethering apps mostly on the Android platform. That does not apply to most iOS users (currently), however. That is because this ruling —for now— only affects LTE 4G devices. With the next-generation iPhone, which will launch in mid-September, heavily rumored to be the first iPhone to include LTE access, this will affect those choosing to go with Verizon Wireless for their fancy new iPhone.

The ruling asserts that Verizon must not charge an additional fee for tethering on its devices—so long as they are not on the grandfathered unlimited data plans. The iPhone has included tethering support since iOS 3.0, and the feature was taken to the next level by Apple and Verizon Wireless with the launch of the Verizon iPhone 4 and the wireless Personal Hotspot feature in early 2011. The feature was soon spread to iPhone carriers globally with iOS 4.3.

Earlier this year, Apple brought the Personal Hotspot feature to its tablet with the LTE iPad. Something notable with Apple and Verizon’s agreement for the iPad is that the wireless tethering feature is included in the pre-paid data plans. If a user pays a certain amount for data, they will not have to pay anything extra to access the wireless tethering system. With the LTE iPhone, according to today’s FCC ruling, users will have the same, great experience.

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AT&T is still the “iPhone network,” according to numbers  from its quarterly earnings report. AT&T sold 5.5 million smartphones in the quarter, but 4.3 million of the smartphones activated were iPhones. That means the iPhone represented a whopping 78 percent of total smartphone sales (although some “iPhone activations” could have been hand me downs). Additionally, AT&T’s postpaid customers are almost 60 percent smartphone customers, which means AT&T’s iPhone customers represent a huge percentage of its base—nearly 5o percent and growing.

Verizon announced numbers last week including 3.2 million iPhones sold. While the iPhone is down significantly from the holiday quarter, it is up from 3.6 million activations in Q1 2011. Apple’s earnings will be reported at the end of the day today.

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Consumer Reports took a beating for measuring the new iPad’s heat and charging non-issues under intense loads. However, it still overwhelmingly recommended Apple’s new device.

The high-resolution screen of the new iPad establishes a new benchmark in excellence, providing the best rendering of detail and color accuracy we’ve ever seen on a tablet display. As a result, the iPad tops our new tablet Ratings, posted today.

Performance on the new iPad ($500 to $830) was superb in virtually every other way as well. The 5-megapixel camera took very good photos. Verizon’s 4G network yielded very fast, dependable connectivity to a 4G-compatible version of the iPad in our informal tests. And despite the energy-intensive display and graphics, the iPad still has longer battery life than all other tablets.

Responding to consumer comments on the new device, and to coverage from other reviewers, we also carried out further tests that confirmed the new iPad is warmer in its hottest spots than the iPad 2. But we didn’t find those temperatures to be cause for concern. In addition, further tests of observations we made that the new iPad was not recharging when playing a demanding, intense video game, showed that the problem was limited to times when the device was playing a demanding game with the screen fully bright. Our high overall judgment of the new iPad was not affected by the results of either battery of tests.

The biggest downfall?
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It is interesting how little Verizon has to provide, yet the splash page they put up today still screams “iPad!”.

Notably, the graphic image file name is:766x385_HP_pre_NO_optin.jpg but somehow we don’t think Verizon’s big surprise is the recently discontinued HP Pre.

Update: Now AT&T has their version up:

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Following Wall Street Journal’s report last night that AT&T and Verizon will carry the LTE iPad 3, the publication is reporting that Apple is now testing an 8-inch iPad in its labs. While WSJis not exactly sure the version will launch, it does claim the iPad is being tested.

Officials at some of Apple’s suppliers, who declined to be named, said the Cupertino, Calif.-based company has shown them screen designs for a new device with a screen size of around 8-inches, and said it is qualifying suppliers for it. Apple’s latest tablet, the iPad 2, comes with a 9.7-inch screen. It was launched last year.

WSJ’s sources said the 8-inch iPad’s screen would pack a 1,024-by- 768 display similar to the current iPad. The smaller version will apparently also pack a LTE chip inside, as WSJ said the iPad 3 would.

There is always the chance that the 8-inch iPad will not see the light of day, because Apple tests things and sometimes does not bring them to market. An 8-inch variant of the iPad would be a close competitor to Amazon’s Kindle Fire, which has seen great growth.

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Adding to earlier reports today, the Wall Street Journal is reporting that Verizon and AT&T will carry the iPad 3 rocking LTE. Also backing up earlier claims, WSJ said Apple would hold its media event to unveil the iPad 3 during the first week of March.

Verizon Communications Inc. and AT&T Inc. will sell a version of the coming iPad that runs on their newest fourth-generation wireless networks, according to people familiar with the matter, as the battle to cash in on big investments in mobile broadband heats up.

It is not certain if Sprint will carry the LTE version on its upcoming LTE network, according to the publication.

One of its sources is the infamous Captain Obvious:

When LTE isn’t available, the new iPad will default to a slower network technology, one of these people said.

The iPad 3 is rumored to feature Apple’s A6 quad-core processor, Retina display, LTE, upgraded camera, and more, according to multiple sources. iMore reported today that the iPad 3’s announcement will occur specifically on March 7 with a launch shortly after.

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Despite reports that Verizon’s fourth quarter earnings were hurt mainly by high subsidies for iPhone, Verizon announced on Tuesday it sold 4.3 million iPhones– over 50 percent of the 7.7 million total smartphones sold during the quarter. This statistic follows reports earlier this month that Verizon sold approximately 4.2 million iPhones during the holiday quarter. Compare that figure to the 1.6 million 4G LTE smartphones sold during the same quarter, of which the carrier offers more than 18 (mostly Android) devices versus a few iPhone models. These numbers show consumers are still choosing 3G iOS devices over the latest generation of 4G LTE smartphones from other vendors.

According to Barclays Capital analyst James Ratcliffe, even with the high subsidy, Verizon will see a positive cash flow of approximately $1,600 per iPhone. His estimate is based on the nearly $2,000 spent over a two-year contract and a $400 subsidy for the same period. Ratcliffe explained to Bloomberg:

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Verizon Wireless has been under fire this week after announcing it would begin imposing a $2 fee on customers who do not have their bill set to be paid automatically, and instead pay it through electronic check. Today, the Federal Communications Commission announced they would begin investigating Verizon’s new fee. Shortly after, Verizon announced on its website that they will not impose the fee to meet with customer’s requests.

The company made the decision in response to customer feedback about the plan, which was designed to improve the efficiency of those transactions. The company continues to encourage customers to take advantage of the numerous simple and convenient payment methods it provides.

Verizon said this fee was going to help move customers to a more convenient payment method. Luckily, they have chosen to go the other way.

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Carrier Verizon Wireless, a joint venture of U.S. telecommunications firm Verizon Communications and UK multinational mobile network operator Vodafone, today announced financial results for the September quarter. Big Red sold two million iPhone units which represents a 300,000 units decline compared to the June quarter. Verizon was also behind rival AT&T which yesterday reported activating 2.7 million iPhones in the quarter out of a total of 4.8 million total devices.

In a separate statement, rival AT&T said it activated a million units of the new iPhone 4S on its network as of Tuesday, while Verizon made no mention of iPhone 4S in its quarterly filing. iPhone 4S went on sale in the United States, UK, Australia, France, Germany, Canada and Japan on Friday, October 14. The phone will roll out to 22 new countries later this month, with regional online Apple Stores in those countries accepting reservations beginning today.

Verizon’s full press release is right after the break.

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Just like Verizon, T-Mobile has chosen to side with Samsung in its fight against Apple reports Foss Patents. T-Mobile’s reason, in response to a preliminary injunction proposed by Apple, is that they don’t want key 4G devices to be banned for the holiday season. And since it doesn’t look like T-Mobile is getting the iPhone anytime soon, Samsung’s 4G phones could be a big part of their sales. Check out T-Mobile’s response below:

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Here’s the story (via Daring Fireball). The short of it is that Verizon asks the court not to issue Apple’s requested injunction against Samsung products because an injunction “is not in the public interest… It significantly limits consumer options and crippling the free flow of goods to Verizon and its customers”.

The obvious response is what injunction wouldn’t?

The question is: why would Verizon throw its weight behind Samsung in this battle now that it has the iPhone?

Perhaps Verizon isn’t as happy with the iPhone and as they were in early 2011.

Notice the love start to peel away in the video below. Verizon CEO Lowell McAdam was expecting to have an iPhone 5 this summer and counts that as a reason for missing targets in the third quarter. Revenues overall are flat and Verizon isn’t seeing the LTE money they were hoping for. Samsung obviously sells a bunch of LTE phones and Tablets that Verizon wants to capitalize on (and has a lot invested in) including the Galaxy Tab 10.1, Droid Charge, and the Droid Nexus Prime due out later this year…

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Verizon Wireless CEO Lowell McAdam

At an investor conference yesterday, Verizon CEO Lowell McAdam made the simple argument:

I have taken the position that the AT&T merger with T-Mobile was kind of like gravity. It had to occur, because you had a company with a T-Mobile that had the spectrum but didn’t have the capital to build it out. AT&T needed the spectrum, they didn’t have it in order to take care of their customers, and so that match had to occur.

I don’t think that I’ve heard a rationale for the merger stated more succinctly.

But coming from AT&T and T-Mobile’s biggest rival, you know it is a bunch of horses**t.

Since when does a company CEO say something to the effect of “We want our competitors to be stronger and better equipped to compete with us and take our customers”?

The reason why Verizon is in favor of the deal is because it eliminates a low-cost player in the market and brings the U.S. closer to a telecom duopoly, in which AT&T and Verizon can set prices.  Just recently, Verizon was forced to offer a $50 pre-paid data plan that competes with Sprint’s Virgin and T-Mobile.  With Verizon/AT&T running the show, they won’t need to make moves like that.

It’s pretty obvious to anyone not on an AT&T or Verizon payroll (including fifteen members of Congress led by North Carolina’s Heath Shuler) that a merger would be horrific for wireless competition in this country.

No one with an eighth-grade education really believes that any merger, telecom or otherwise, has ever created jobs or competition in the marketplace which is what AT&T is somehow trying to argue. Hopefully this thing is killed. Soon.

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While Google passed the 40% smartphone share (Microsoft must be happy!) in the US threshold, Apple continues to outpace the industry as a whole posting modest 1 point gains in the US smartphone category according to comScore.   Apple moved up from 25.5% in March to 26.6% in June on the year old iPhone 4 model which also saw its US debut on Verizon.

Apple also moved up in the hardware category, below:

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Update: AT&T has officially verified this information.

Frankly, throttling isn’t so bad if done fairly.  It is a good way to penalize heavy users but without them having to worry about overage charges.  For high end users, however, it wold make sense for AT&T to add the ability to buy more regular speed data like they do now…
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As Apple prepares for its official iOS 5 launch in the fall (likely in September), the company has unleashed their latest iOS beta as on over-the-air update. This over the air process will only work for those running iOS 5 beta 3. Apple warns that doing an OTA update will delete your photos and will require a physical re-sync:

NEW: If you are doing a OTA software update from beta 3 to beta 4, you will need to re-sync your photos with iTunes.

iOS 5 also includes all new notifications with Notification Center, iMessages, Newsstand, and more. OTA updates will come over 3G, as we revealed a few weeks ago.

Update: As expected, it works over 3G (on Verizon!!!) Video below:

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