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AT&T Resumes Selling iPhone in NYC

December 28, 2009 4:00 PM EST
AT&T Inc. (NYSE: T) has reinstated the sale of the Apple Inc.'s (NASDAQ: AAPL) iPhone to residents of New York City on Monday after restricting orders for an undisclosed reason over the weekend, according to reports from the Wall Street Journal.

The stoppage, which received buzz over the Web, will do nothing but add to the image of AT&T as a network that simply cannot handle the popularity of the iPhone and its data usage features.

Customers that use the popular smartphone in dense urban areas have long complained about their inability to access features and the dropping of calls with the exclusive wireless carrier. Data consumption on the iPhone by users tends to be heavier than the use by other consumers.

In a statement AT&T said "we periodically modify our promotion and distribution channels," but the company declined to comment on why some customers were prohibited from purchasing the phone.

AT&T has become a media punching bag in recent months with shot being taken at the company's network. Verizon Communications (NYSE: VZ) has launched and all out campaign against AT&T’s network, and Saturday Night Live kicked the company while it was down by taking potshots at its service.

"While there's more to be done, including places like Manhattan and San Francisco, I want to assure you that we have a high sense of urgency," stated AT&T Mobility Chief Executive Ralph de la Vega earlier this month at a press conference where he acknowledged the company's need to improve its network in certain cities.

Rumors are surfacing that iPhone users that consume heavy levels of data may be charged more to do so. AT&T has not made this official as the company may see its exclusive deal for the iPhone expire sometime this year.

Shares of AT&T are slightly up before the closing bell on Monday to $28.28. Apple shares are up 1.10 percent to $211.33.

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