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Mobilizing the Business and Business of Mobile

AT&T looking towards software to enhance iPhone experience

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AT&T has been riding the iPhone craze to becoming a leader in the telecom space. However, that exclusivity will not last forever. So, they are looking ahead and trying to be pro-active about their future success. The iPhone development was unprecedented in that the phone was made without AT&T input. They were luckly in that Steve Jobs and company did a fantastic job with the phone. Can you imagine what it would have looked like for AT&T and the rest of the mobile space if iPhone had bombed. It has allowed AT&T to take a $900 million hit on profits while still growing through its voice and data plans. 

However, AT&T has learnt from this experience and has decided not to rest on its laurels. Here is an interesting article from CNN Money on what AT&T is doing to keep its leadership position. One of the technologies they are working on is to transfer videos from the iPhone to TV with just a flick of a finger on the iPhone. Now, that would be cool. However, it is going to take some time for that technology to be available.

I am certainly glad that AT&T is taking some concrete steps to insulate its future. I get a feeling that AT&T is looking in its crystal ball and is not liking that it is so tied to the pipes and spectrum. It see Apple capturing a share of revenue through its app store to which AT&T has no access. It also sees that its capital-hungry investments in infrastructure which has laden it with huge debt could become millstone around its ability to grow. Finally, it sees that mobile phone carriers are fast becoming utilities which can have far-reaching consequences. It recognizes the signs of time and wants to diversify into being able to provide a complete experience to the user while at the same time reducing its dependency on the spectrum and other capital intensive investments.

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Written by dvdand

November 20, 2008 at 8:06 am

Posted in AT&T

Tagged with , , ,

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