AT&T should embrace iPhone VoIP over 3G

When the App Store was announced and Steve Jobs was discussing the possibility of iPhone applications totally transforming the way we use Apple's devices, he was asked if it would support VoIP on the iPhone. In response, Apple confirmed that VoIP would be available in the App Store as long as it was running on Wi-Fi, but not AT&T's 3G network. The company claimed that any VoIP solution running on 3G would be in violation of its exclusivity deal with AT&T.

But now that Global IP Solutions has released VoIP software for the developer community, I think it's time we explore why AT&T doesn't want iPhone VoIP running on its network.

Now I know that the first response will be because the company will lose substantial revenue as people use VoIP instead of its own network, resulting in less usage and fewer overage charges, but I think that's a bit short-sighted.

First off, no one is telling AT&T to allow VoIP on all its devices, just the iPhone. Secondly, why can't AT&T get in on the sale of VoIP solutions and encourage people to buy them from the App Store as way to reduce overages?

It may sound radical, but it just might work.

One of the main concerns every cell phone owner has is whether or not they will be charged additional fees for spending too much time on the phone. But with the help of VoIP, they'll be able to reduce the number of minutes they use and in turn, save some cash each month. In the process, AT&T will lose revenue and probably feel the effect of VoIP in no time.

And while the initial shock of lost revenue could be jarring, we can't forget that the iPhone customers are just one segment of AT&T's revenue source and they certainly don't account for the majority of users. That said, iPhone users are most likely to add apps to their devices and are more likely to use a VoIP app than someone using a BlackBerry or Treo.

But who cares? AT&T will lose some revenue in the short-term, sure, but why wouldn't it create a VoIP application of its own and sell it on the App Store, dubbing it the "official VoIP application for the iPhone 3G?" That app may not make up for the lost revenue in overage charges, but it will effectively create a PR campaign that the company can exploit for months: AT&T is the only cell phone carrier that's willing to let you use a different voice communication solution on its own platform, and thus, save you money.

The long-term effect of allowing iPhone 3G users to use VoIP over 3G could have a major impact on AT&T's bottom line. Current users would tell others that after buying an iPhone, they too will be able to reduce their monthly payment to one offering less minutes and use VoIP instead. In the process, AT&T could advertise that simple fact and probably see an influx of customers that are looking to save some cash on cell plans and own an iPhone at the same time.

It may be a risky move, especially considering AT&T may not be the desired carrier for some people, but I think it's a risk worth taking. Let's face it -- not all iPhone users will use VoIP anyway and more often than not, it'll be easier for them to make calls with their phone than to use VoIP on the device, since 3G is hardly ubiquitous.

But for every risk, there's the possibility of enjoying a huge reward. AT&T could lead the pack in VoIP communications over a cell network and exploit its "desire to make customers happy" to steal more customers from competing carriers.

Cell phones are quickly reaching saturation and cell carriers will be forced to steal customers from now on instead of gaining those without plans. And as that happens, they will need to differentiate themselves and try to entice more people to their side. And what better way to do that than to use the iPhone 3G as a test market and offer customers the opportunity to come to AT&T and enjoy all the benefits of VoIP?

Sure, it's radical. But at this point, throwing some caution to the wind wouldn't be such a bad idea for AT&T. And let's not forget that no one has a gun to the executives' heads: they can always stop supporting VoIP whenever they feel like it if it puts too much of a strain on the company's bottom line.

AT&T should embrace iPhone VoIP over 3G
Posted by Don Reisinger

iPhone 3G

Phase 2 Deployment Expands iPhone 3G Across the Globe

On Friday, August 22, 2008 the second phase of iPhone 3G deployment begins to more foreign countries, as announced in Apple’s Q3 2008 financial results call recently. Plans are to deploy the phone in 20 additional countries this month which brings the iPhone 3G to over 40 countries in total. The remaining 30 or so countries will have the iPhone 3G before the end of the 2008 calendar year. It’s been confirmed that the device will make its debut in ten countries in Latin America, more in Europe and India.

The company America Movil and Telfonica will release the iPhone 3G in Argentina, Chile, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Paraguay, Peru and Uruguay. However it appears that America Movil will have the exclusive release in Honduras and Paraguay. America Movil is a leading provider of 3G technologies in Latin America offering 3G services in 15 countries in that region.

Country/operator combinations include: Estonia (EMT), the Czech republic (Vodafone), Hungary (T-Mobile), India, the Philippines (Globe), Poland and Romania (Orange).

In many case, pricing and availability in these regions is not available. Customers are advised to check with their local carrier many of whom are offering registration to receive notification as to when the iPhone 3G will be available, rate plans, etc.


what the best of iPhone 3G ?

Apple testing fix for iPhone 3G signal issues

A BusinessWeek article purports that Apple is currently testing a fix for widespread loss-of-signal, poor signal and fluctuating signal issues with the iPhone 3G.

Peter Burrows writes:

“Apple and Infineon are currently testing the fix, which will be included in a broader update of the iPhone’s software. iPhone owners will be prompted to install the update when they synch their iPhones to a PC, just as they have on many other occasions. In its statement, AT&T said, ‘We urge our customers to synch iPhone 3G to iTunes frequently to ensure they have the latest software updates.’”

Users, in droves, have reported signal strength/reception issues with the iPhone 3G when utilizing the 3G network in areas with purportedly strong coverage, per AT&T and other carriers’ maps. Most disconcertingly, phones from other manufacturers often deliver excellent 3G signal strength on the same network and in the same location as signal-crippled iPhone 3Gs.

Several users have exchanged their iPhones for replacement units with no improvement.

The iPhone 3G automatically switches between 3G and 2G networks for voice and data connections. In theory, the phone should hop off 3G when signal strength is too low or non-existent, and hop back on when the signal gets better. In our experience, however, the iPhone 3G isn’t aggressive enough regarding the switch from 3G to 2G. In other words, you may find that your phone stays connected to a 3G network when the signal strength is too low to allow incoming or outgoing calls.

The simple solution is to manually turn 3G connectivity, forcing a switch to 2G — which may take several seconds — and likely a boost in signal strength.


Enjoy to use iPhone 3G