This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple's Fault, Not AT&T, for iPhone Ills

Updated since 4:06 pm EST Wednesday

NEW YORK ( TheStreet) -- Apple's (AAPL - Get Report) iPhone is a signaling pig.

As the great iPhone/ AT&T (T - Get Report) debate goes round and round, an equipment supplier has pointed the finger at Apple -- not AT&T -- for causing the problems with the iPhone's wireless connections.

Hoping to clear the air -- or perhaps sell more gear -- Nokia Siemens Networks, a joint networking gear venture of Nokia (NOK - Get Report) and Siemens (SI), says mobile signaling traffic exploded when Apple released the iPhone OS 3.0 on June 18, 2009, according to a note from JPMorgan analyst Rod Hall Wednesday.
iPhone 3GS

Apparently, in an effort to lower power consumption, Apple designed the iPhone to stay in touch with the network through heavy bursts of signaling traffic rather than keep a radio channel open constantly (keeping the channel open drains the battery). The iPhone effectively caused signaling congestion problems like dropped calls and poor connection quality.

Think of it like a railway system and the arrival of fancy new trains. A troubling feature of the new trains is that their radios jam the railroad's signaling system. The tracks aren't congested, but the lights are all glowing red.

If true, the assumption would make Apple's iPhone the culprit in what has been a vexing issue for AT&T, Apple and millions of cranky customers.

This could be a big vindication for AT&T, which has been widely criticized for its network's quality issues. If Nokia Siemens' diagnosis is accurate, it would mean that AT&T's data network isn't in need of great repair and that only a modest signaling upgrade would be needed if Apple decides to stick with its signaling preference.

AT&T declined to comment. Apple wasn't immediately available for comment.

The picture started to come into focus last week. Nokia Siemens CEO Rajeev Suri hinted during a presentation at the Mobile World Congress in Barcelona that an unspecified smartphone had a particularly troubling network profile.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
SI $0.00 0.00%
AAPL $113.29 0.00%
NOK $6.32 0.00%
T $33.29 0.00%
FB $91.01 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs