AT&T, Inc. (T) has been getting itself into a wad about recent commercials from larger competitor Verizon Wireless. In those ads, Verizon touts its advanced 3G wireless coverage over AT&T's tepid 3G coverage as a way to battle the ubiquitous popularity of the Apple (AAPL) iPhone that no carrier seems to be able an unseat as the phone to exclusively sell. The "there's a map for that" ads from Verizon are well done and truthful; although, AT&T continues arguing against that. Now, AT&T's exclusive partner, Apple, is taking sides.
While Verizon is claiming AT&T does not want to face the truth, Apple is now running ads touting the iPhone's ability to take a voice phone call while downloading internet content or web surfing at the same time -- something no Verizon handset can presently do. Seriously -- this is the best Apple can do to defend its kingdom? Is high-speed coverage more important or the ability to multitask several things in your own portable, wireless office? Each customer must make that call, right?
Making dinner reservations online while chatting with the hubby or receiving a client email while talking to him at the same time may make for good marketing, but are those situations close to reality? Maybe so.
The wireless market in the U.S. has always been hyper-competitive and as more data shifts around and displaces voice revenue for the national carriers, the power of marketing will certainly save (or ruin) the day. Is the power of the network or the power of the handset more important? That's a tough call -- but Verizon's first, long volley across AT&T's bow just ignited a powder keg. That is, much to AT&T's chagrin.
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