Despite the massive popularity of Apple’s iPhone, AT&T, the iPhone’s exclusive carrier, posted a 1.2 percent drop in profits as revenue from traditional landlines fell faster than the company’s cost-cutting measures could go into effect. However, AT&T added a record number of iPhones into its network during this quarter.
In all, AT&T’s wireless subscriber base grew by 2 million during the third quarter to 81.6 million, including 3.2 million new activations of the Apple iPhone. This figure benefited from a price cut of the older versions of the iPhone and the June release of the upgraded iPhone 3G S, which boasts …read more

Due to the lack of MMS messaging availability, AT&T and Apple have been sued for deceptive marketing. The lawsuit, which listed Deborah Carr as the plaintiff, was filed on Wednesday in the state of Ohio.
The lawsuit reads: “Millions of customers, as a result of the false and deceptive representations and concealments of Apple and AT&T purchased the 3G and 3GS, waiting for the wonderful day in June 2009 when the new application would be available which would allow MMS. Unfortunately, after downloading the new 3.0 Software Update application, MMS still did not work on both the 3G and 3GS.”
While even …read more

As part of the federal government’s stimulus package, $4.7 billion dollars have been set aside to bring high-speed internet to areas in which such a luxury has not yet been introduced. However, the deadline to accept the money, August 20, is rapidly approaching, and surprisingly few big-name broadband carriers have stepped up to the plate and taken the money.
 
So far, carriers like AT&T, Verizon, and Comcast have not yet applied to receive any portion of the stimulus money and are not expected to do so, according to the Washington Post. The companies reportedly do not have any need for the …read more

The Communication Workers of America, a labor union to which more than 32,000 disgruntled AT&T workers belong, has organized a strike to protest AT&T’s proposed changes to their contracts. Negotiations began on July 20 between AT&T representatives and CWA, but several key members of the CWA have stated that if the two parties do not reach an agreement soon, widespread striking will occur.
 
Among the strikers’ most pressing concerns are outsourcing, which has claimed a total of 22,000 jobs by giving them to foreigners, salaries, healthcare, and retirement benefits, all of which may be affected when AT&T drafts the new contract. …read more

AT&T and Verizon Wireless are usually fierce competitors in the lucrative wireless communication industry. However, with Verizon Wireless forced to sell their assets in nearly 80 areas in the United States due to government regulations, AT&T decided to buy the assets for a reported price of $2.35 billion.
The areas, which are mostly rural, account for approximately one million former Verizon Wireless customers. Those subscribers will now have to switch over to AT&T to keep their wireless service. AT&T said that the transfer will be complete near the end of 2009.
Due to the addition of Alltel Corporation and Rural Cellular, Verizon …read more

Joe Nacchio, the former executive at AT&T and former CEO at Qwest, was told on Tuesday that his six-year prison sentence will begin on April 14th. Nacchio received his sentence after being found guilty on 19 counts of insider trading in 2007.
After being passed over for a promotion within AT&T, Nacchio left for rival Qwest. However, a costly decision in 2001 currently has him heading to prison. In April of that year, Nacchio allegedly sold more than $50 million in Qwest stock after learning that the company wasn’t as financially sturdy as those outside of the company had thought.
In early …read more

AT&T announced on Tuesday that they plan to invest $17 billion to $18 billion in 2009 in capital spending. Most of the funds are pledged to bolster AT&T’s wireless and broadband networks to offer more coverage.
As pair of the expansion plan, they intend to add almost 3,000 jobs this year to support customer demand for broadband, wireless and video.
It’s not all good news, however. Outside these job additions in their wireless and broadband units, the company will still proceed with the 12,000 job cuts announced in December 2008. These cuts are necessary due to restructuring as AT&T shifts away from …read more

I just got off the phone with AT&T. They provide my telephone service and DSL line. Their customer service, well, sucks, and it sucks not because of the customer service reps, but because of the procedures they are forced to go through. So along with ranting and raving, I wrote the following now open letter:
June 25, 2008
Randall L. Stephenson, President, CEO & Chair
AT&T
San Antonio, Texas
Dear Mr. Stephenson,
Today I called AT&T customer service. I wanted to see if we could extend the referral on my old number to my new number.
What a nightmare your customer service has become. And …read more