Kara Swisher

Recent Posts by Kara Swisher

Yahoo Can Relax a Little (But Just a Little)–This Year's BoomTown Obsession Might Have to Be AT&T

lolcat-failure

Of all the major issues to think about in the digital sector over the next year, perhaps the most important to focus on will be the mobile space.

That’s why the swirl of controversy around the inability of AT&T (T) to maintain a reliable network for users of the Apple (AAPL) iPhone–especially in New York and San Francisco–is perhaps the flashpoint story of the coming year.

It’s not only an appalling predicament for consumers who have paid for promised service and been denied it, as well as a future Harvard Business School case study in corporate incompetence (or malfeasance, depending on your mood), it is a really bad development for tech in general.

In other words, failed calls and glitchy apps are more than just annoying–they’re holding back a key spark of future innovation for computing.

Unfortunately, this kind of thing happens way too much in the digital space.

In fact, this AT&T debacle actually reminds me a lot of AOL’s busy-signal crisis of 1997, when the then-high-flying online service signed up too many consumers for its all-you-can-eat access and did not have the equipment in place to deliver what it sold.

aol_logo

At the time, AOL CEO Steve Case used the same lame excuses as AT&T, pretty much asking users to buck up during the shortfall. But he quickly retreated, apologized and fixed the situation.

That particular self-inflicted mess is now but a distant memory and certainly did not stop the progress of either AOL or Internet use overall. But it was a stark reminder that the relentless march of innovation should not be throttled.

That’s truer than ever as computing moves into what I consider an entirely new era of development, all centered on portable “smart” devices, whose standard-bearer is the iPhone, iPod touch and–soon–iSlate.

That’s purely my opinion, of course (hey, Scoble, Web 3.0 is still mobile!)

But, as Walt Mossberg and I wrote before our seventh D: All Things Digital conference last summer:

“So what’s the seminal development that’s ushering in the era of Web 3.0? It’s the real arrival, after years of false predictions, of the thin client, running clean, simple software, against cloud-based data and services. The poster children for this new era have been the Apple iPhone and iPod touch, which have sold 37 million units in less than two years and attracted 35,000 apps and one billion app downloads in just nine months.”

This means there’s plenty of need for strong networks that can handle all the wireless data that are going to be pumped through them in ever-increasing amounts.

Perhaps this looks like a bandwidth hogfest by customers, but it’s the landscape now and AT&T must adapt or, well, you know.

So, following in the footsteps of a lot of really terrific work done pretty much by bloggers on the mess AT&T has created, it is probably a given that–as I have obsessively done with Yahoo (YHOO) and its management woes–other journalists and I should stop making jokes about it and spend a lot more time monitoring what the telecom giant and others are doing or, really, not doing.

As usual, all tips and delicious memos appreciated, as well as suggestions of stories to look into.

Until then, here’s a short and mostly silly video I did recently of some dropped calls I had on my iPhone, as well as an interview Walt did with AT&T President, CEO and Chairman Randall Stephenson at D7 last summer about these very issues:


comments so far. Add yours.

  • Anonymous

    Thanks for the article. I’m a shareholder so this is useful info.Personally, I don’t think this will adversely affect the stock. It’s a good dividend payer, and a very profitable company that will straighten these issues out.

  • Anonymous

    I hope Louie wasn’t in the car !

  • Mario6

    Two comments about this article:

    1- The article states: “That particular self-inflicted mess is now but a distant memory and certainly did not stop the progress of either AOL or Internet use overall.” Let's remember that AOL is not a leader anymore and in my opinion they are dead.

    2- A lot of people are talking about AT&T and their wireless mess but AT&T's problem is bigger and endemic. If you are a user of their TV service (U-Verse), land service or broadband you will know that all of them are a disaster. U-Verse is full of bugs (you cannot watch TV) not to mention that when you contract their service they come to your house and destroy your property installing the cable. AT&T's broadband is so busy that their service is slower than dial-up and the land phone service is overpriced. All this issues show how AT&T has bigger and deeper problems.

  • http://www.facebook.com/amit.malhotra.dc Amit Malhotra

    Am I missing something, or did the author take video of her failed calls on the iPhone while driving on the 101? iPhone in one hand, Flip in the other — which hand is the steering wheel in?

  • davebarnes

    Why waste your hands on steering? That is why you (at least most people) have legs. My only question is: if you use one hand for the phone and one for the Flip, then how do you hold the burrito?

  • http://allthingsd.com/boomtown Kara Swisher

    It looks like I am the Maria Shriver of the Internet, but I had the flip on a twisty tripod and the phone had an earphone, though I was holding it in my hand, along with wheel.

  • http://allthingsd.com/boomtown Kara Swisher

    The burrito was attached to my neck via wires.

  • http://twitter.com/growhappy growhappy

    4G better have fiber optic to back it up. Pretty soon every wall is going to have a TV ($1000 a piece) and I will be able to ride a spaceship from the comfort of my… bedroom. I will also be able to swallow a camera and be inside out. Or maybe Woz will show us how to build a computer ground up. Oh well, this could have been done years ago. I want my A-O-L.

  • alrighty1

    It's diffcult to discern the bias here when being subjected to pop up advertisements for other carriers while reading or waiing to watch the video.

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