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Rumor Mill: AT&T looking for 2G exit strategy
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AT&T Mobility is looking for a 2G GSM exit strategy, and will begin pushing more 3G HSDPA phones to customers in an attempt to phase out 2G phones in its portfolio, according to a leaked internal AT&T email.
According to the email, which is dated this past Wednesday, the carrier began lowering prices on 2G phones on Wednesday to increase sell-thru. The email includes a reference timeline for how the process is to proceed, and today an unnamed 3G handset will be designated as free as a replacement device for those with 2G handsets that will presumably be phased out. On Sunday, AT&T managers will be authorized to begin selling the device.
The move may have more to do with simply ridding AT&T's portfolio of older, less expensive 2G handsets than 2G GSM technology itself, since most handsets are backward compatible. It could also be a pure business decision on AT&T's part, since HSDPA handsets are more likely to include data plans, which would boost ARPU.
In the fourth quarter of 2008, wireless data revenue jumped 51.2 percent over the year-ago quarter to $3.1 billion, making it the 12th consecutive quarter with wireless data revenue growth above 50 percent. Data revenue made up 26.6 percent of AT&T's fourth quarter wireless service revenues, up from 19.9 percent in the year-ago quarter.
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Comments
Posted by Anonymous | February 13, 2009 - 2:18pm
I'm a store manager and I haven't heard about this.
Posted by Anonymous | February 14, 2009 - 1:57am
The best way for AT&T to achieve phase-out of 2G, is to offer non-punitive data options on new phones. 5 gig caps aren't going to work.
Posted by Anonymous | February 15, 2009 - 4:26pm
This is silly at best. The rumor above doesn't make sense... it eludes that AT&T is trying to get rid of 2G 'service' and then says AT&T is going to lower the prices of 2G handsets to get rid of the inventory. Then says there is going to be a 3G handset to get people to migrate.
Ummm no.
You want to get rid of 2G, you don't put more devices out there by encouraging sales. People take a phone, they're not likely to buy a new one anytime soon in 3G.
Second, you want to get people to 3G, you offer THOSE phones at a discount to get people to move.
Third, if you have *A* 3G device to get people to migrate, which they don't really do one device, they do many, you're not going to get people with iPhones to give them up for most likely a flip or a semi-featured QWERTY phone. You're not going to get blackberry users to give up their phone for a piece of junk.
Finally.. you migrate, and they've done this before, user off of the old technology over a period of 2 years, the contract time. When their phones are up, they have the options to get into new phones EASILY at their choice of handsets and less impact on AT&T's bottom line.
AT&T isn't stupid. We're in a bad recession right now and they're not even dumb enough to think that people are going to spend more simply becuase they have a new hand set.
These pipe dream websites crack me up.. "according to an email"... WHAT email? From who? "Leaked email" on the internet is usually code word for "we have no real source so we're singing this one "leaked email"...
Posted by the phone guy | February 16, 2009 - 5:24pm
There is no migration from 2G to 3G, because it is all the same technology. All towers are equipped to handle 2G and 2.5G service and a majority of them have been upgraded to handle 3G and 3.5G is well under way. This "story" is not really a story, but the way business works when technology improves. Blackberry Bold is 3G (the first) and an improvement of sorts in technology. Overtime, we will all have 3G and up phones. WIth the current 3G sim cards in circulation, most of the current 2G phones will always be usable, but things like Video Share, will never be an option on the 2G phone as well as simultaneous talk and data sessions, which Verizon can not do on its current 3G network. Now, if AT&T upgrades the SIM cards to 3G only, then the older 2 and 2.5G phones will not work when that sim card goes bad....it will happen eventually - technology demands it.
Posted by ANONYMOUS | February 19, 2009 - 1:35am
I'm very interested to see how this is going to affect phone service in my area. Where I live for about a 30-40 mile radius, at&t is the only cell phone provider. A few years ago, it took them until the last minute to bring gsm towers to the area when they were phasing out tdma service. I'm hoping that this does not happen again with our regular 2g service. at&t only has about 10% of my home state (Louisiana) covered in 3g. They'd simply lose too many customers if they cut the 2g towers off. In a lot of places, at&t is the only real reliable service. There's not much to switch too. You can only get Verizon in big cities, T-Mobile's coverage is spotty at best, and you've got to be along an interstate to get Sprint. At&t can't simply shut all those areas out of service.
Posted by bill | March 20, 2009 - 3:44pm
I work for att and they wont just cut off 2g like the article says. Either the phones will wear out or the contracts will be up before 2g is completely gone so everyone shouldnt worry too much about it right now. There are too many 2g devices out there to just cut them all off including 1st generation iphones. The 2g will be obsolete one day im sure but it wont be gone overnight.
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