AT&T’s latest solution to the core problem that iPhone users have been reporting over the past couple of years is free wi-fi. Before getting into the solution, however, lets step back and examine the problem. Over the past several years, iPhones have been selling at record rates. While this has been no problem for Apple, it has created somewhat of an issue for the iPhone users themselves. As more and more smart phones have entered consumers’ hands, providers have had difficulty keeping up with the demand for 3G services. And nowhere has this problem been more pronounced than with AT&T.
As the only contracted provider for Apple, AT&T is the only provider authorized to offer services to iPhone owners. And, as more and more iPhones have been purchased here in the United States, AT&T has had increasingly bigger problems keeping customers satisfied. The issue seems to be that in areas with high concentrations of iPhone users, consumers are experiencing high numbers of dropped calls. Of course, Apple was the first suspect, but it turns out that AT&T has simply not had the capacity to provide coverage to this many customers.
Many iPhone owners demanded that Apple either terminate its contract with AT&T, or allow other service providers to offer coverage. The idea was that by spreading iPhone users out among providers, it would alleviate the strain on AT&T’s limited capacities. Despite these demands, however, Apple renewed its contract with AT&T. Around the same time, Apple introduced the iPad, which could place additional strain on AT&T coverage.
Certainly there were some back room promises between Apple and AT&T that triggered the renewal of this contract. Word has spread about various approaches that AT&T intends to take in order to improve its service to iPhone owners. While the traditional approach would be to expand its infrastructure in order to accommodate the mass volume of iPhone owners, AT&T has opted to take a secondary approach to aid in its efforts.
AT&T’s idea is that by offering free wi-fi to AT&T customers, it can effectively reduce the strain on its 3G network. The first phase of this program rolled out in May of 2010, when AT&T introduced its first free wi-fi spot in Times Square, New York. Apparently, this first phase was successful, as AT&T recently rolled out the second phase in this development in Charlotte, North Carolina. As of last week, AT&T customers in Charlotte have access to free wi-fi within the confines of the hot spot.
AT&T selected New York and Charlotte based on the volume of people who use 3G services in the area. If this plan works to reduce the strain on the 3G network, we can likely expect to see additional free wi-fi spots in other places around the country that experience large numbers of 3G users. While AT&T is also pushing forward with expansion of its 3G network, it hopes that this portion of its plan will help appease customers for the time being.
