steve's blog

thoughts on technology, business and strategy

Search

Why iPhone 4 Will Crush AT&T's Network

Jobs_iphone_4

Business Insider Link

Last week during Steve Jobs’ interviews at D8 an audience member asked him about AT&T’s network. iPhone users are deeply familiar with the issues—dead connections, dropped calls, bad coverage, and intermittent data.

Everyone was wondering how Steve would answer. Using his masterful ability to demonstrate empathy, Steve disarmed the audience almost immediately (see video), replying that AT&T’s best experts tell him “things should be getting a lot better soon – certainly by the end of the summer”.

Contrary to Steve’s answer, AT&T’s issues are not primarily around spectrum or backhaul. Instead, they center around 'signaling', which smartphones rely on for polling, status and control updates.

Ironically, as Jobs talked about a summer solution, we’re on the precipice of an event which will likely make AT&T’s network dramatically WORSE very soon: iOS 4 multitasking.

This is because multitasking will increase signaling usage by 3-5x. Imagine streaming Pandora, buying the song on iTunes while listening, receiving Twitter timeline updates and updated World Cup scores, and checking in on Foursquare – simultaneously! Or exiting the subway with 5 open apps and waiting while each establishes a new network connection. Without a doubt this will bring AT&T’s signaling layer to its knees.

And no amount of additional spectrum or backhaul can solve signaling issues. The longer term solution is re-architected LTE networks, but their deployment will take many years. Adding femtocells is another solution, which is exactly why AT&T is the first carrier in the US to aggressively push their use.

But here’s the fascinating point: the signaling issues aren’t just AT&T’s fault. In a quest to extend battery life on the iPhone, Apple did something 'non-standard' which compounds the issues – the iPhone constantly drops connections, going in to an idle state. Keepalives within the apps then reestablish a new connection after only a few seconds. Network equipment makers never anticipated this. Think of it as hanging up during a phone call when the line is silent, and then redialing to respond.

Though RIM was doing this earlier than Apple, the iPhone is the first device to really push use of idle disconnects, as Apple looked for every way to extend battery life. If Apple stopped their use in iOS 4, technical experts almost universally agree that signaling problems would subside. But it would also result in reduced iPhone battery life, which is why Apple won’t agree to do so. Steve Jobs almost certainly knows this.

Perhaps most fascinating is that this problem is another testament to Apple’s marketing muscle and ability to control partners and suppliers.

How so? AT&T knows full well about the signaling issues, but has been okay taking public blame, even though the 'solution' is in the handsets just as much as the network. Psychologically speaking AT&T and Apple know that people prefer to have one primary scapegoat. If instead AT&T subscribers knew that their horrible service was in part due to Apple’s design choices, it’s likely they’d be less loyal. In exchange for its constant bashing, AT&T enjoys the lowest subscriber churn in the industry.

So Steve Jobs is much smarter than his answer at D8 suggests. He knows that there is a pretty simple solution to a complex problem—for Apple to roll back use of idle disconnects. But this almost certainly won’t happen since for Apple it’s not a zero sum game – the entire network would benefit, while Apple would lose its edge in battery life against Android. Which is why your service is likely to continue getting worse for a long time to come, not better...

16 comments
Jun 09, 2010
sankim said...
This is one of the most depressing posts I've read in a while
Jul 04, 2010
 said...
What are your thoughts on how this will play out with Verizon's iPhone next year?
Oct 25, 2010
sozila_com said...
Unless the Verizon iPhone is a dual network phone, it won't play well. I would not leave AT&T just for the unlimited data plan.
Oct 25, 2010
Dries Grobler liked this post.
Oct 25, 2010
Dries Grobler said...
Luckily I'm not in the US (:
Jan 10, 2011
antonejohnson said...
Great explanation. Why not make this configurable? Let users decide for themselves where to put the tradeoff between lousy coverage and lousy battery life. I'd gladly choose the latter in the car, at the home or office where I can stay plugged into a power source.

At any rate, I'm glad to have switched to Droid X on Verizon. I get my "iPhone" fix with an iPad and a Verizon Mi-Fi card. Virtually all of the same apps run on the iPad, often in much better "HD" versions -- and I finally have a phone that works to, um, make phone calls.

Apr 13, 2011
Robert liked this post.
Apr 21, 2011
Roger liked this post.
Apr 21, 2011
Roger said...
thanks for sharing!
Apr 22, 2011
caro aprisio liked this post.
Apr 30, 2011
groepsseks liked this post.
Jun 20, 2011
resultat bac liked this post.
Sep 04, 2011
margarita05 said...
Apple iPhone 4.0 is selling well and is easily accessible. What could be more. The iPhone is a very reasonable and comparable to the best of the mobile industry today. A4 with chipset and iOS 4, 4 Apple make the most of the functions expected of it with aplomb. And Apple is updated all the time too. Now, with the A5 processor already in Apple iPad 2, you can be assured that in no time at all the iPhone 4.0 will also run the same processor with IOS version 4.2 of the OS.

iphone 5 accessories

Sep 22, 2011
Dec 28, 2011
Anna Longreen liked this post.
May 21, 2012
Really effective data, thank you for the article.
la tienda

Leave a comment...

steve cheney

steve cheney

Engineer with an MBA.

Current entrepreneur.

Former programmer, marketer, investment banker, and vc.

My Other Sites
 
Subscriptions

Contact me
Follow me on Twitter