The iPhone and AT&T Wireless: A match made in, well, not heaven?

While the iPhone itself might live up to its considerable hype--we’re still a few days shy of getting our hands on one--Apple’s exclusive deal with AT&T Wireless for cellular service could leave some users happy they can also use the phone to listen to music or watch YouTube clips.

That’s because for several years, AT&T Wireless--formerly known as Cingular--has been among the least satisfying service providers, according to Consumer Reports’ annual customer satisfaction surveys.

In fact, in our latest report, from January 2007, AT&T had  “middling to low” customer satisfaction, with static and busy circuits cited as widespread problems (as they’ve been in our previous surveys). Frequent service-related problems were compounded by the company’s relatively low marks for helpfulness in handling customer questions and complaints.

In addition, the iPhone will run on AT&T’s “2.5G” EDGE network, rather than one of the faster “3G” networks available from the major carriers, such as Verizon or Sprint’s EVDO, or even AT&T’s own UMTS/HSDPA network (Don’t worry about the acronyms. The upshot is that EDGE has much lower bandwidth than true 3G networks.). Reportedly, AT&T has been working to upgrade the Internet capabilities of some of its towers to ensure higher minimum data speeds than were originally reported.

And some journalists who received models of the phone in advance have said that AT&T’s  wireless service is a potential weak point. David Pogue of the New York Times' Technology section highlighted our survey findings while Walt Mossberg over at the Wall Street Journal's Personal Technology section has called it "a major drawback" for the sleek device.

(We expect to buy the iPhone on Friday--just like you would. After testing by our reporters and engineers, we'll report our findings here on the Blog as well as on ConsumerReports.org. In the meantime, check out our interactive guide to the iPhone.)

But the combination of slower network speeds and poor customer service might not bode well for early iPhone adopters (there are already rumors that a second-generation iPhone will be 3G-capable), especially since Apple’s deal with AT&T is a five-year exclusive. And AT&T’s just-announced service plans for the iPhone require a two-year commitment.

The good news is that the pricing plans, announced on Tuesday, appear to be competitive. Three versions will be offered, ranging from $60 to $100 per month, and there’s a one-time $36 activation fee. The basic $60 plan includes 450 minutes of voice time. An $80 step-up plan bumps voice time to 900 minutes.  The premium plan, priced at $100 a month, includes 1,350 minutes of talk time. All three include 200 text messages, unlimited data services, and “visual voicemail,” which lets you see the types of voicemail you’ve received and access them individually, rather than in the order in which they were received.

In addition, unused monthly minutes can be rolled over to the next month, and there are unlimited calls between mobile phones.

Comments

[AMGoff]

How anyone still subscribes to Consumer Reports absolutely amazes me. Everything they review is done with a certain amount of bias. They've consistently shown themselves to be out of touch with mainstream America. Their opinions on the automotive industry are downright pathetic and their grasp on the tech industry is not that far behind. CR may have had it's niche a decade ago before the internet became ubiquitous but their time has definitely passed. I'll take the average of opinions from twenty Joe Americans before I would put an ounce of faith into Consumer Reports. It's really about time you close up shop guys.

[Mitch Pilchuk]

Here is my personal experience with consumer reports: Every-time I have had a good working relationship with something you guys reviewed, I found that my personal experience was the exact opposite of Consumer Reports.

So in my world, you guys aren't truthful in your 'review' of the subject.

I haven't read or relied on the information from your magazine in a decade.

I'm not defending ATT. I have them as a provider and they are as good as Verizon was when I had them in my area. Even the best wireless isn't all that good at this point in time. What we accept as good mobile telephony is still a far cry from the phone reliability of the old POTS (Plane old Telephone Service) days on copper.

[lrd]

Because of CR's distinct negative bias to Apple products in the past, I'd like to forewarn everyone reading this article that they should take it with a grain of salt. CR's not really as unbiased as they like you to believe.

[B.L.]

I'm a CR subscriber and follow their advice with religious fervor. I'm surprised at this article!

If you had waited just ONE DAY and TRIED the device, you could provide something more valuable than speculation and innuendo. Rather than hint that the phone might be this or that, by waiting a single day, you could review the actual features and performance of both the phone and the entire product. It is not just a phone, desipite the name.

Carrier choice is one aspect, but not the only aspect. I am surprised at your lack of a careful, thoughtful analysis of the entire product. Apple approached Verizon first, but was not able to get the control of the user experience that Cingular offered. I would like a review of that user experience, and not the carrier alone. Wait one more day, and then, perhaps a real review.

[Parity]

There's no confirmation of this "five year exclusive" agreement. USA Today printed that, without any attribution to a source, and others have repeated it but it's mere speculation. AT&T and Apple have only said "multiyear." If they are locked to AT&T for five years... I think that could be a big problem for iPhone adoption; I doubt Apple is that stupid. They've got iPhone 2's and iPhones Nano and who knows what in the pipeline. They're not going to stay married to AT&T for five years....