How Not To Do Business By AT&T

ATT Death StarThey’re one of the worlds largest and richest companies, and they have no idea about the most fundamental principles of business. Oh they think they know; it’s on their wall somewhere, buried in some mission statement or company goals. Plenty of lip service is given to it as it usual in large companies, but AT&T continues to treat their customers like dirt.

The latest and perhaps most shocking example is the story of Giorgio Galante, an AT&T customer who wrote emails to AT&T CEO Randall Stephenson in part to complain about several aspects of his AT&T experience. After the second email in as many weeks, Giorgio received a phone call from AT&T’s “Executive Response Team” thanking him for his feedback and at the same time warning Giorgio if he continued to email the CEO he would be served with a cease and disist letter. Threatening your customer with legal action because he tries to communicate with an officer of the company is so shockingly dumb I am at a loss for words. Is that what they teach you at B School?

It’s not the first time, however, AT&T has acted in such a way. As they were being barraged by complaints about the poor network service AT&T said it was the customers who were using too much data and they would have to look into doing something about that. Yes, our service stinks and it’s your fault mr. customer, so I will have to find a way to penalize you for that. And in fact, AT&T has now found that way, this week announcing dramatic changes to their data plans for smart phones like the iPhone. Unlimited access is gone and customers now much choose between two data plans, both with data limits and charges for going over the limits.

How does AT&T get away with this nonsense? Because they have the iPhone, the most popular cell phone in the world and you cannot buy it from anyone else. Apple may have signed a pact with the devil on this one and like it or not, there is some blowback that Apple suffers from all this as well.

I believe something needs to change drastically in the mobile world. We can no longer allow companies to sign us up for long term (2 year) contracts and then treat us so poorly. Since all the mobile companies seem to be in league with each other on most of these egregious practices, it’s going to take some kind of government action to step in and fight for the American consumer.

In the end, I don’t know what AT&T is thinking on this one. Is Giorgio Galante a pest? Unnecessarily filling up an important CEO’s email with trivial complaints? I don’t care if he is a nusense . He’s a customer, he has a right to be a nusense. He deserves to be treated with respect. He deserves an answer to his questions, not a threat of legal action.

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Kids and Ease of Use in Technology

Any parent with kids probably realizes this, but kids are incredibly savvy with technology. They have no fear or preconceptions about anything, so they are willing to jump in and try anything. It’s one of the things that’s so beautiful about kids, before they get tarnished by the world.

I learn so much from watching my kids work with technology. I learn about the future. Having kids is like living with your own personal crystal ball. I also learn a great deal about user interface and ease of use in tech products. My daughter, when she was just nine, picked up my iPhone and knew just what to do with it, no instruction needed. That’s when I knew it was a most amazingly built device. I think every technology company should have kids employed in their labs to do their user testing. If the 5 year old can master it, you’re ready to ship.

Tyler Gray realized the same thing and put it further to test with his iPad and his 5 year old son Cash. I’ve included the video in this post, and here also is a link to the original Fast Company article.

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Operation Chokehold Seeks To Punish AT&T

A World of Hurt

AT&T has been in hot water with their customers lately. Spotty network coverage in critical areas like San Francisco and New York have customers angry. Add to that comments made by AT&T CEO of mobility last week that blamed customers and their heavy data usage for the problem and things are just getting worse.

Dan Lyons of Newsweek who writes as “Fake Steve Jobs” wrote a blog post positing that if iPhone users all used data heavy apps at the same time on a particular day it would choke the AT&T network as punishment for their poor service and lack of respect for customers. Dan may have written the post with tongue in cheek but some of his readers think it’s a great idea and it’s been gaining steam across the Internet.

Teachable Moment

Parents often call this a teachable moment, and if this plan goes off it certainly will be.

Lesson 1: You cannot hide from your customers anymore. All of your faults will be exposed and spread widely among friends and foes. The opportunity is in your reaction and response.

Lesson 2: Be very careful what you say because customers are listening and your words will be amplified and once again spread widely. AT&T’s implication that they may penalize customers for heavy data usage went over like a lead balloon and was the spark for this latest outrage.

Lesson 3: Never, ever blame your customers for your problems. Payback’s a bitch so they say and your customers have many ways to hurt you now. A nasty letter to the editor is the least of your problems.

Apple, Verizon, LTE and the iPhone

File part of this story firmly in the rumor category, but it does give us an interesting look at the future of mobile communications. Currently the world is split between two main wireless cellular technologies; GSM, used by AT&T and T-Mobile among others and CDMA, primarily used by Sprint and Verizon. It looks like the next generation of technology beyond the current 3G, the so-called 4G technology will be LTE or Long Term Evolution. LTE is being rolled out currently by Verizon and has acceptance from AT&T, T-Mobile and most other vendors. For the first time ever, we may be on a single standard.

Part of the problem with the iPhone is that it is a GSM technology phone, so it will not currently work with Verizon or Sprint. Apple would have to develop a new handset altogether. If the new generation iPhone is LTE, however, this would open up a world of possibilities as it would be technologically compatible with most vendors. I think at this point we may see the ending of the long standing exclusive arrangement with Apple and AT&T. And if Apple ships the phone before AT&T can roll out it’s LTE network, AT&T stands to loose a great deal of customers. AT&T has been running at least a year behind Verizon technologically for the past several years, so I see a dark future for AT&T. AT&T’s customer satisfaction has also been plummeting lately due to their inability to handle the iPhone as it is today.

Bottom line: Apple and its’s customers stand to be big winners and AT&T stands to be a big looser unless AT&T can latch onto another phone that knocks the iPhone out of the box.

Big Step for Amazon – Kindle on iPhone

When Amazon introduced the new Kindle 2 ebook reader, somewhat overlooked was what may end up being the most important announcement of all, that Amazon was looking to put the Kindle technology on other devices. It came much faster than I expected when last  night I discovered the Kindle iPhone application was available.

The app itself is very well done and after purchasing my first Kindle book, opening the app synced my purchase right over to the iPhone, easy as can be. The reading experience on the iPhone is surprisingly good. Of course it’s no match for a real Kindle with the larger screen and eInk technology, but I was perfectly happy with the experience. You can control font sizes, create book marks and the software remembers where you left off.

It’s a significant development because it effectively drives the price for a Kindle reader down to $199 from a regular Kindle price of $359. For people who already own the iPhone, which is far more people than the Kindle device, the app to add Kindle functionality is free. This is going to put Kindle books into far more hands far quicker than Amazon could do on it’s own. It will also likely sell more Kindle hardware as well as people want to upgrade to a better reading experience. As I said in the last podcast, Amazon is in the book sales business not the hardware business. This is a great first step and I can’t wait to see where else Kindle technology shows up.

Social Media Morning 10-06-08

The new Obama 08 iPhone app is amazing and a real political tool. Also, two twitter stories: CNN uses twitter very effectively and ABC uses twitter to launch it’s new show, Life On Mars.

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Obama iPhone App is Brilliant

The Obama campaign for president released today an application for the iPhone that is simply brilliant. It’s a free download from the Apple iTunes store. Not only is the application beautifully designed and easy to use, it has terrific functionality and a clear purpose.

Design-wise, this is one of the best iPhone applications I have ever seen. It keeps well to the Obama campaign colors and graphic themes. It also adhears perfectly to all iPhone application standards. I’ve seen plenty of other iPhone applications from reputable companies that are no where near as good as this one. Remember the train wreck that was the Audi racing application?

But this application isn’t just a pretty face. There is clear purpose here. One of the most important aspects of a national election campaign is phone calling. Millions of dollars are spent setting up phone banks and aquiring  lists of names. With this application the Obama campaign can unleash an army of phone callers at no cost. The application searches your built in phone book and by area code determins who among your contacts are in certain battle ground states and sets you up for calling them. It even keeps track of who has been called and who has not. Other features include a get involved button which, using the build in location aware feature of the iPhone, finds your local Obama HQ and other local events and activities you can participate in. The Media section includes lots of video from Obama speaches that you can watch and email to your friends. Again, a method to spread the word. This is how virtal marketing really works. Finally, there is an issues tab which provides detailed information on Obamas positions on a variety of issues.

Obama has been heralded as the campaign that has best used the Internet and new media to great effect. Here we see the campaign really walking the walk and living up to this reputation in spades.

Social Media Morning Show 8-22-08

Audi publishes an iPhone application for their A4 car and it’s a complete failure.

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Apple Can't Make Time For iPhone Copy and Paste

I’m a big Apple fan and I own lots of Apple products including a first generation iPhone. I was somewhat shocked to read some statements from Apple product head Greg Joswiak about some iPhone features customers have been wanting. As far as copy and paste goes, the article says:

Apple has a priority list of features, and they got as far as they could down that list with this model, Joswiak said

Really? Apple’s priority list of features certainly does not match up with its customers priority list because every iPhone owner I know had copy and paste at the top of that list. It smacks of the elitism that has always been a part of Apple if you look closely. We’ll do what we please and you’ll like it. For the most part we do because what they create is amazing. For all the talk of Open Source and freedom on the Internet, Apple is the most closed, proprietry company there is. So, Apple will give you copy and paste on the iPhone when they are darn good and ready and until then you will sit quietly and wait.

Web Development in the iPhone'ed Mobile World

With great fanfare, Steve Jobs told the world the one of the biggest innovations of the iphone was bringing the “real” internet to a mobile device for the first time. No more junior, stripped down websites, with the iPhone you can view entire original websites as they were intended to be viewed.

Because the iPhone did not ship with the ability to run third party native applications, Jobs boldly told the development community they should build web 2.0 applications that would be just as good as native applications. Than Apple release development guidelines detailing how developers could build custom web applications formatted perfectly for the iPhone.

Thousands of web applications have sprung up for the iPhone, many of them very useful and well done. But these are custom applications that only run on the iPhone. What about the rest of the mobile market? What ever happened to the “real” internet? The point that you didn’t need to develop any kind of special or stripped down version of a site just to view it on a mobile phone? Apple has fallen into its own bear trap. I’m not complaining too much, being an iPhone user myself, but the rest of the mobile world is getting a little bit of a rip off with more development time being put into iphone specific web applications.

If you’re a business and you are looking to make some noise in the mobile market, should you create an iPhone custom web app? Probably, especially if you believe your target customer is likely to own an iPhone, but don’t forget about the rest of the mobile universe. It’s still a great deal bigger than the iPhone market, at least for now.