Honoring the agreement
more on the topic
A few years ago, AT&T Wireless accepted a pile of money from NTT
DoCoMo in exchange for a favor that the former would not be able to
refuse. For buying an equity stake in AT&T Wireless, DoCoMo wanted
the U.S. carrier to launch 3G UMTS technology in at least four markets
by the end of this year.
At the time, it seemed like a pretty bold promise. Though DoCoMo
launched UMTS in Japan more than two years ago, acceptance of
high-speed mobile data and advance applications has not been nearly as
robust in the U.S. as it has been in Japan.
This week, AT&T Wireless is making good on the pledge it made to
DoCoMo, and though the U.S. mobile data market still would not be
accurately described as robust, the competitive conditions are very
different than they were even six months ago. Both Verizon Wireless and
Sprint have begun building out national 3G networks using CDMA 1X EV-DO
technology, which actually offers far better data rates than
UMTS.
Some people might think that AT&T Wireless is merely trying to stay
within competitive striking distance with this upgrade. However, once
mobile companies get beyond speeds of 100 kb/s or so, it really doesn't
matter much who has the fastest data rate.
AT&T Wireless should be able to offer many of the same services
that Verizon and Sprint will be offering, and to customers, what
matters most will be service capability and quality, not what the
speedometer reads.
AT&T Wireless has indeed fulfilled a promise with its UMTS
launch--a promise not to DoCoMo, but to its own customers.
E-mail me at doshea@primediabusiness.com
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