Wireless Wars

I have been amused by the recent war of words between Verizon and AT&T. Millions have been spent on several series of advertisements. It began with Verizon's "there's a map for that" campaign where they called out AT&T on their sparse 3G coverage. Verizon was spot on. AT&T has a very sparse 3G network footprint. AT&T has responded vigorously, and in much the same manner a Senator would when responding to a tough question on "Face the Nation". AT&T did not like the question so they are answering a completely different one.

To understand how AT&T is slipping the question to confuse the public, you must understand what Verizon is challenging them on. Wireless 3G technology is one deployed by the major wireless carriers to enable higher speed data services to wireless devices - phones or PC air cards. If a carrier is not offering 3G at your location, the data speeds delivered to the phone or computer card are slower. Verizon has simply stated that AT&T does not offer the higher speed data services to very much of their service footprint. They are absolutely correct. AT&T has only built out the higher speed network in major metropolitan areas. If you don't live in a big city, only AT&T's slower data network is available.

AT&T cannot afford to admit this is true, so they have deceptively answered a different question. They show their larger voice coverage area as proof that Verizon is making a big deal over nothing. Verizon never challenged their voice coverage. They were very specific in mocking the AT&T 3G coverage map. It is true that you can make a voice phone call withing the coverage area indicated in the AT&T rebuttal commercials, but making a 3G data connection is not possible in most of that area.

Now AT&T has decided to go on the offensive by pointing out that you can have a simultaneous voice call and data connection on their network using the iPhone. That is true. But is it a big deal? I guess it would be nice occasionally. But more important to me would be the ability to make a fast data connection wherever I currently am. That is much easier to do on Verizon than AT&T.

AT&T advertisements commonly claim the "fasted 3G network". This is also a ruse. The truth is the 3G technology used by AT&T is the theoretical fastest, and would be the fastest service if compared to other carriers technologies in a laboratory environment. But in order to really be the fastest 3G technology, you need both the technology and the capacity. The technology is easy - it is purchased from a vendor. Capacity is hard. It requires equipping each of the thousands of cell sites across the country with expensive circuits. AT&T's reluctance to purchase the capacity along with the iPhone customer base quickly consuming what capacity is provided makes AT&T the slowest 3G network in the real world. Nearly every 3rd party test of real world wireless data speed will rank Sprint and Verizon as the top 2, with AT&T and T-Mobile bringing up the rear.

Several years ago, AT&T discovered they could redirect capital funding from their network to the marketing department, stating they have a superior network, and the customer perception of network quality would improve. This is the same thing Verizon did many years ago, starting with their "Can you hear me now" advertisements. It was very effective for Verizon, mainly because they continued to invest in their network as they advertised its superiority. As a result, Verizon is the undisputed network leader, and the consumer is aware of it. It was brilliance on their part. AT&T is trying to replicate that strategy with an inferior network. The only way they can succeed is by hiding the truth and confusing the consumer.

I find the current wireless war to be entertaining, and cannot wait for the war to escalate. I am also curious as to why Verizon has not asked AT&T to answer the specific question instead of the one AT&T wants to answer.