Blackberry CEO Says Steve Jobs & Apple Screwing Over AT&T.

Seeing how bad AT&T screwed-up the launch, I don’t blame Apple for wanting to retain as much control as possible. Do you?

Good Point. They did have a few problems with activation etc. But unless Apple is planning to get into the phone carrier business they might want to give a little more credit and control to AT&T. Afterall it is their network that will give the iPhone its capabilities…even if its a bit slow at the moment.

Boo-hoo! Apple made it so fast and easy to activate the iPhone that people don’t even recognize the ugly AT&T underbelly. Too bad RIM doesn’t have such creativity.

It’s really hard for me to be sympathetic when it comes to the oligopoly that the four US wireless carriers hold over their customers and the handset makers.

How many features are crippled on US handsets by the wireless carriers?

Why does the US lag behind most of the rest of the world when it comes to SMS? Why can’t the CTIA implement a long code solution for SMS instead of making short codes so expensive and difficult to implement on each carrier’s network?

No one in the US complains about the land line’s quality or security - all points that Ma’ Bell said would be an issue if they allowed third party products to attach to their network. Today, we hear the same argument by the US wireless carriers.

It’s just good business sense. If you have a partner that doesn’t hold up their end of the bargin, forget ‘em. The original Apple phone failed because the carrier ignored Apple and they both lost money. With this partnership, Apple held up its end - and it’s AT&T dropping the ball.

I’m sure that the Blackberry could do far better if you could dictate to the carriers what features they should carry - Steve Jobs just managed to do it first. It’s not that he’s visionary or anything - he just figured out what services people wanted years ago that should have been given to consumers.

Apple probably will screw over AT&T and the other main carriers in the process - good. If Apple didn’t dictate terms, it would be like creating iTunes and then having ISPs tell Apple that they could only give users half a song because of bandwidth restriction. That’s what carriers have been doing with phones in the US - and I’m glad that will start to change.

Jesus. Please. It already IS a commodity business. Most of the cellular networks suck. I haven’t met ANYONE who loves their network outright — everyone has an issue with something.

It seems to me that if Apple could NOT use a network partner, they wouldn’t. And, frankly, what they need from AT&T is minimal. We’ve got visual voicemail (they could likely do this with any willing network — it is nice), an always-on data network (most carriers already have this, though speed varies) and that’s it.

Apple is bringing all the candy to this business. AT&T didn’t invent the phone. Hell, they didn’t even SEE it until it was nearly done. Apple just specified what they wanted from the carrier (see above) and there you go.

Many iPhone users — myself included — will tell you that the only reason we’re DOING business with AT&T in the first place is because the phone currently only works with their network.

/Ant

Crying shame…if AT&T didn’t screw me over royally by keeping me in my 2 year contract while I pay for dismal phone service, I might actually have some sympathy.

Who would you rather have in control, an old behemoth like AT&T or the young corporation with real creativity?

Somehow I don’t think AT&T is complaining…they are getting more customers from other carriers (even with inferior EDGE) simply by carrying Apple’s product…no way they’d be getting these customers otherwise…sounds like AT&T did the right thing by me.

Sour Grapes all around. I don’t see AT&T complaining about anything. 1,000,000 activations over a period of only a week. Co-CEO of Blackberry eh? Worried much?

Steve Jobs does to the telecommunication industry like he did to the music industry?

Music industry didn’t realize there was a pent up demand for a service until Steve came in with iTunes and iPods.

Telecommunication industry doesnt realize how much dissatisfaction there is until Steve comes in. Steve wants to change the bad image of fruits in the telecommunication industry to a better image. I hope AT&T gets their act together for the sake of American public. Otherwise Asia will come rolling in and do same thing as they did to the automotive industry.

Dumb.. He’s upset he didn’t think of it first.

No AT&T logo
No subsidized pricing contract rip-off scheme
No AT&T crap on the phone

Yah I can see why he’s upset, he assumes this is what consumers want? BS.

waa waaa.. Wan’t some cheese with that wine?

Maybe Jim should spend a little more time listening to the customer than criticizing Apple. I have several iPhone-owning acquaintances that absolutely love the fact that they registered on iTunes, regardless of the fact it took a few of them several hours.

Also, a big wow-surprise that Blackberry’s Co-CEO is complaining about the iPhone. I don’t think the iPhone is poised to take over the Blackberry market just yet, but the functions that both phones have in common are done MUCH better on the iPhone. All it really needs is full push mail capabilities and the Blackberry is useless to me.

if thats what you have to do to get a Clean Stylish Great Product out there, then thats what you got to do.

I wonder if these folks see the huge change that is coming. I am ditching my cell phone in favor of a Wifi Voip device. The only time I am not in range of a network is when I’m driving….. and I shouldn’t be on the phone or texting at that point anyway. I may get cell service if it becomes reasonably priced but I doubt that will happen until they start losing customers in droves.

Zero sympathy for Southwestern Bell/BellSouth (aka the “new” AT&T). And less than zero sympathy for RIM for the sour grapes.

If RIM had had the strong reputation and branding of Apple, they’d have done the same thing. If they had Apple’s position and didn’t use it to their and their customer’s advantage, they’d just be plain stupid.

“It’s a tremendous amount of control. And the more control of the platform that goes out of the carrier, the more they shift into a commodity pipe.”

GOOD! that is EXACTLY what the providers should be, just a carrier of internet data. Cell and cable companies and their little private domains of surcharges and fees can f off and die. Just give me an IP connection and charge for that.

I don’t see this as a bad thing really, who says giving the power to AT&T is the right thing to do?

It is bad enough we have to sign a 2 year user agreement with AT&T, isn’t that enough power? Oh wait, here is another $100/mo. out of my pocket to you AT&T, Do you want more power yet? I think the amount of money we give them is ridiculous, and the day will soon come were these “minute packages” we are buying will be obsolete.

Apple has appeared to be one of the more solidly ran business’s in our generation, and very clean, and smooth operating hardware. I would be more than willing to give more power to apple over AT&T.

Sam

Too bad for you RIM. If you were as smart as Apple, then maybe you’d have came up with the iPhone. I’m glad Apple controls as much as they do. AT&T screwed up the launch, and it wasn’t Apples fault.

Handwriting on the wall for RIM!

Boohoo, older trend setting product is no longer up to par, soon to be buried by Apple. Way it goes…

Feel bad for ATT? Not in this lifetime. I seem to recall a little spectrum band party where they would love nothing more than to take the public airwaves from the people and deprive us of our birthright to communicate via radio without a middleman collecting tolls.

Large telecom knows their time is soon coming; cheap launches and commoditized sat services coming; no longer costs billions to create a telecom company in the near future. If the spectrum is freely available, mobile wimax can handle much of our urban wireless comm needs without a carrier except a bargain basement ISP, maybe even free municipal services carry our urban wireless traffic.

Bye bye wireless carriers, I never loved you, go to Hell! Overpriced, poor service, cartel mentality, PRICE FIXING; nothing more than the bully by the bathroom door that wants my lunch money when I want to take a piss.

Good riddance to the telecoms, a new day is upon us in the next 10 years… Socialist communications services 4 FREE.

“It’s a tremendous amount of control. And the more control of the platform that goes out of the carrier, the more they shift into a commodity pipe.”

What added value does a carrier provide? I need a connection, after which they need to get out of my way. Like the music industry they want to be the middlemen, but they don’t add value, they just complicate matters by crippling phone features, lock-in contracts, and lackluster coverage.

Why should they have their logo on the phone? Did they design it? No. Besides, I don’t want their crap on my phone.

He says ‘commoditization’ like it hasn’t happened already. Tell me, which has more worth to me: something I’ve paid $499 for or a free piece of plastic my carrier subsidized for me? Commodity, indeed.

Strikes me as a little jealousy on Blackberry’s part. As for AT&T, the iPhone may be the best thing that has happened to them since the Alexander Graham Bell. http://paullevinson.blogspot.com/2007/06/iphone-arrives.html

Is there anybody on earth who REALLY believes AT&T has been “screwed over” by Apple? Oh come on now….how many people just signed two-year contracts?

I kind of wish this guy knew what he was talking about. He’s just pissed now that there is a real competitor to the blackberry that doesn’t resemble a palm pilot.

I love when corporate nay sayers whine. It shows their weakness and fear of the situation. A damn shame really.

honestly, it sounds like professional jealousy to me. If apple was worried about pointing the blame why would they make it only activate through itunes (which although it had kinks seemed to be really fast for everyone). The simple fact of the matter is that if at&t had designed it then it wouldn’t have had half the cult following. The iphone would not have had the same affect if it was at&t so I think he’s just jealous.

AT&T Wireless doesn’t exist anymore.

I think BaldSilly is a sad, sad little man. Just because your company is completely devoid of innovation doesn’t mean you have the right to complain of others success.

You’re a hack! If AT&T wants to design and build a superior phone, they can plaster their name on it. Apple seems to be the only company with enough balls to take credit for their own products.

Oh, and it’s not fair that Steve has more hair on his head either. Boo-freakin-hoo!

Jim Balsillie just happens to be Canada’s highest paid CEO right now. http://www.templatestaff.com

What a terrible story. 99% fluff, 1% information.

This is a ridiculous statement. After the Wireless providers have been trying to “commodotize” their service for years by locking equipment, providing horrible customer service, fighting number portability…..penalizing customers with unfair cancellation fees, having to have good credit to get service (which to this day makes no sense! Even a cable company will trust you with expensive equipment without a credit check), they have lost any right to take credit for innovation. Why should AT&T get their logo on an Apple branded phone? They are lucky they got it, and they (from initial accounts) royally screwed it up. From forcing people to buy additional equipment, to lying about inventory levels……it just proves that if you have enough money, you can get as big as you want (in spite of yourself).

This phone is the shit…

Cry Baby! The Apple Machine keeps rolling and besides everyone knows that it always has bugs to be fixed!

Bow down to your master! Steve Jobs!

As for computers I would never own a PC!

Bandwidth as a commodity? What are they thinking? How are we going to charge people for their every movement and click without multiple tiers and a password and credit check on every webpage?

I’ve met Jim, even had dinner with him. He is a very smart and deliberate guy and doesn’t like to sensationalize his or RIM’s capabilities, they just deliver well-engineered products and pioneered reliable, secure push email since the 1990s. I think for Jim to make this comment is probably indicative of his fear of the iPhone, but it’s also a warning to the other carriers that don’t yet carry iPhones but would want to some day. But the carriers can’t help but notice the amount of new subscribers AT&T is getting due to the iPhone, they will all be crawling to Steve’s door once their exclusive with AT&T runs out.

wireless providers -are- commodities. the sooner the market realizes this, the sooner we won’t have ridiculous billing schemes and locked down closed up phones (the iphone is in this category)

apple should have released a carrier-neutral open phone. they didn’t. the buzz has gone from “wow cool awesome finally a phone to change the wireless landscape” to “just another thing for apple fanboys”. i look forward to an offering from a tech company that finally gets it right.

NO NO NO did u not read the article?

you guys keep sayin AT&T screwed up the launch, the article is explaining how Apple pushes all that bad press off onto its partners, it wasnt ATT fault for a bad launch

it was Apples fault all along, how can u possibly blame att, as much as we all hate them, for the screwed up launch:

“Apple is bringing all the candy to this business. AT&T didn’t invent the phone. Hell, they didn’t even SEE it until it was nearly done.”

its not atts phone, the signup process is thru apples site/itunes or w/e. quoted from the above person, att barely even got to see it b4 it was released

its like puttin out a new video game system but u dont want anyone developing games until 1 week from launch, how would that work out

Suck up much? Just because RIM and every other device manufacturer folded to the network’s 1950’s style demands doesn’t make Apple the bad guy.
Don’t be suprised if within the year other mobile makers start to demand higher billing with the other carriers. How innovative can you really be when you’re required to conform to standards set by companies that restrict services and features because they cant figure out a business model?

Apple created a new game instead of changing the rules of the old one.

I am sorry, but while I am not an A T & T Fan boy, I must say all you haters out there blaming A T & T for your activation problems seem to be forgetting one important thing. Regular A T & T Phones that are activated through the A T & T Network are often activated with in minutes if not seconds, the IPhone had to go through the ITunes store. That places the activation problems as squarely on Apple as it does A T & T ’s edge network. So get your head out of a trash can and use your brain just a little bit. In fact people claimed the edge network was down at some point during the IPhone Launch and as much as I would like to believe it, I didn’t have a lick of trouble and still haven’t with any of my data services on the edge network.

It’s typical for a competitor to try and rubbish new competition. However it’s incredibly telling when it’s the CEO of the company doing the dirty work. Here you have what is obviously a very scared CEO, trying his best to spoil the Apple/AT&T deal, or at a minimum, trying to introduce a little FUD into the relationship to try and scare investors.

The reality is that both parties are incredibly happy with the deal, AT&T have just acquired nearly 1M customers on 2 year contracts over a few days in a market where this feat alone is simply impossible. AT&T are congratulating themselves for having the fortitude to invest in the Apple idea and now are stealing market away from their competitors in droves.

So yes, it’s no surprise to me that the CEO of a company that has been losing share value, market share and mind share since the launch of Apple’s phone will come out and try his best to portray this new competition in a negative light. After all, Jobs spoke quite poorly about RIMs products for their lack of design and innovation.
Now if the west coast RIM network goes down.. many smart phone users will still be getting their email.

So am I supposed to feel sorry for AT&T when they had every right to decline any offer that Apple made?

Sure AT&T got screwed. Why do you think the iPhone is on their crappy network. The other carriers weren’t will to give up that much control. You don’t really think AT&T was the only carrier they talked to do you?

Wow, my iPhone activation took 3 minutes. Everyone on Verizon who was going to switch had a delay. Everyone on Cingular/AT&T was with in minutes.

Issue? Porting numbers!

Blackberry sucks. It’s top brass proves the point.

The iPhone is Apple’s product, not AT&T’s product. Apple is just using them for the network. I mean its not hurting AT&T to have an EXCLUSIVE partnership with Apple who sold more iPhones in the first 3 days then the Motorola SLVR did in the first month of its launch. I mean its a really good thing for AT&T, because all of those people have to go through them to get the product. So their name shouldn’t have to be on the phone because its not their product.

I do agree that Apple should take all of the blame if something were to be wrong with the iPhone. But only the iPhone itself, if there was something to happen to the network, then of course AT&T should take the blame. I really think that the CEO of Blackberry is just jealous and trying to point out ever little then to downsell the iPhone. He’s sad because he wasnt smart enough to come up with the iPhone so he is taking it out on Apple. That may not be true, but thats what I think.

I don’t see how this is a problem. AT&T is still getting paid for their service, and they’re not having to pay for the iPhone like they do all of their other phones. And they have less work to do… it seems to me this is a win-win for AT&T and Apple.

This is the beginning of the end of the cell industry. Not only will we not need AT&T (or any of their ‘commodity’ industry friends), we’ll all be roving between WiFi networks. My own city of Minneapolis will have city-wide broadband WiFi within the next year. After that happens and Skype releases an iPhone gateway, I’ll pay an additional $175 to break my contract and say good bye to cell service forever.

See ya!

[…] is a technical problem, Apple leaves their partners to shoulder the blame. kmart scooby doo toysread more | digg […]

If you’ve ever been around Europe or Asia you know just how lousy all the American carriers are. I only wish Apple had been able to go further offering a system that allowed you to switch between carriers ie real commoditization. Carrier commoditization is exactly what would be good for consumers…then we wouldn’t be locked into opaque plans with Byzantine pricing structures. Commoditization might bright transparency where consumers could choose a carrier based on price and service and buy the best phone available to run across carriers. Apple merely put a friendly face on the ugly underbelly of ATT’s activation process. The truth is it is still a phone locked into ATT so it’s not actually commoditized.

Don’t worry Jim. Apple will not cross your potential segment of business users.

Just relax. What to do? You are scared as well.

I’ve been an apple fan for life. My first computer was a mac and I’m still on a mac, but Balsillie has a point.
The activation slowdown was caused by a third party vendor contracted by both apple and at&t. at&ts network was ready to go the whole time and could have easily absorbed all the new lines. Remember that on friday, more new cell phones were sold than at ANY time in history. Yeah it sucks but all things considered, it went pretty well.
Moreover it was Jobs who didn’t want to use the 3G network because the chips would wear out the battery too quickly. at&t wanted the phone to work on 3G, EDGE and WiFi. Jobs was happy with EDGE because it is the ONLY ubiquitous data network available, even if the speed is slower than we all would have liked. Verizon couldn’t have provided any kind of data service in the more remote areas of the country.
Because of apple’s insistence on the EDGE network, at&t looks like a deadweight as all your comments are pointing out, even though they would have much rather spent capital on building out the infrastructure of the newer 3G network. at&t should have pushed much harder in the first place for 3G compatibility, but they were eager to have apple’s partnership and now apple looks like a king and at&t looks like a schmuck. Balsillie is absolutely correct and many of the commenters look like fools because they haven’t researched this properly before coming to a judgement of at&t fed to them by the mainstream media.
I love apple and think the iPhone is incredible, but at&t is going to have to take more control over the partnership or lose out on billions of capital expenditures forced on them by apple.

yeah, but isn’t that what everybody does. YOu do something great and you take the success. If something bad happens then you find a pawn to say, his fault.

So what is very interesting about this…….
1) Palm has huge amounts of former Apple employees working for them.
2)Newton??????? A real winner there, we just learned and got better!
3) All the telcos have been screwing consumers for years. Bundling cable packages that no one wants, channels with crap no one ever watches, and making us pay for things like Universal Access and Early Termination penalties.

What is intersting is that Apple now creates content, distributes content, make tools for production of content….WOW
The new AT&T is APPLE!

“It’s a tremendous amount of control. And the more control of the platform that goes out of the carrier, the more they shift into a commodity pipe.”

This is exactly what should be happening, and the reason the whole mess in the cellular industry is there is because the companies try to do something they are horrible at. They are infrastructure companies not service companies. Just charge me for monthly access to the network like you do Wifi or DSL.

[…] you hear that RIM Blackberry’s CEO Says Steve Jobs & Apple Screwing Over AT&T? no score       link    spread 5:44 pm by Silicon Dalley […]

WHAAAAAA Apple made a better phone than the Blackberry! WHAAAAAAA

1) This is a GREAT deal for AT&T. Not only did they get a bunch of new subscribers but they did not have to pay for a phone subsidy. The lack of a phone subsidy is alone huge.

2) One of the reasons that “Palm has huge amounts of former Apple employees working for them,” is that Palm OS was a Claris product (software division of Apple). The product was called Claris Organizer and was sold to Palm.

Yeah, Apple totally screwed AT&T. Bringing in 700K in customers in under 4 days at a minimum of $60 each equals over $41 million, probably much more. I’d hate to be the CEO of RIM now that that crap handheld that they make is looking like a polished pile of dog poo - Oh, and did I mention that Corporate America is jumping ship for the iPhone? The next update is going to bring exchange integration - RIM is so out of here.

Slow down people.

The iPhone looks to be slick, but if Apple wants to compete with RIM for business apps, they at least first need to support OWA, IMAP + SSL, POP + SSL, and provide excellent support along with that for starters. Next, wireless reconciliation over integrations that support read/delete flags.

There is a reason why people love apple, yes, but there is also a reason why 8 million people love the BlackBerry.

Ok, so you’re a corporate shill, and you’re jealous of the iPhone, but with that aside…..

Apple is known for constantly redefining the word seamless and that’s the experience they wanted people to have when activating the iPhone, which is why you activate it through iTunes. Putting AT&T logos all over the place on the box or on the phone just lessens the overall design and look of the phone.

Corporate branding all over the place makes things look ugly, dumbed down, and it’s annoying. People with Windows PC’s don’t need to be reminded that there’s an Intel or AMD processor inside, and they don’t need to be reminded that it’s running Windows, but the stickers are plastered all over the towers and laptops because they assume users are dumb. Same thing with stupid stickers that tell you your laptop has a wireless card in it. No CRAP! WOAH REALLY?!

Let AT&T do their job by providing the service and Apple do their job by providing the product and experience that goes along with it. It shouldn’t be tainted by stupid corporate branding. That could only be thought good of by an ignorant shill.

First of all, the logo at the top of this post is incorrect. The company represented by that logo and the name AT&T Wireless no longer exist. The ‘new’ AT&T logo is different.

As for Apple giving it to AT&T, that’s absurd. First AT&T gets a certain undisclosed amount of money for each phone sold as well as the lion’s share of the monthly service. In addition to that, AT&T is getting subscribers, which is not easy these days considering all who want a phone, already have a phone. To add subscribers at this point is a big deal.

[…] has a bug or if there is a technical problem, Apple leaves their partners to shoulder the blame. Blackberry CEO Says Steve Jobs & Apple Screwing Over AT&T. | Ceosmack Let the discussions heat up Dollars 5 Complete - Making Mobile […]

[…] has a bug or if there is a technical problem, Apple leaves their partners to shoulder the blame.read more | digg […]

[…] of the platform that goes out of the carrier, the more they shift into a commodity pipe.” (Source) Related PostsMom Knits an iPhone for her kidUsers Unhappy About iPhone Battery PolicyiPhone.com […]

[…] dichiarazioni sono arrivate nel weekend dal CEO di RIM, azienda produttrice dei […]

those for AT&T on this one.. Common. F**k AT&T for one. two AT&T is a huge company they can stand of for themselves-they’ve been in the business enough. They don’t need a logo on the iPhone to make money. 3 F**k AT&T for giving customer records to the federal government without warrants-I hope they are getting screwed

What a tool.

And what’s so Apple about this?

When you decide to buy a new cell, what do you look for?
Do you chose between an AT&T Phone or a Verizon Phone?
Or wouldn’t you rather choose between a Motorola and a Nokia?

It has always been the phone manufacturer who’s credited for the hardware. That’s nothing Apple-specific.

I’m really going to about AT&T being screwed.

If Apple ran an ad saying ‘buy and iPhone, it screws AT&T’, more people would probably buy it.

To the Blackberry CEO - it’s called Shrewd Business you gay cock.

Extremely transparent fear and desperation from the CEO.

Let’s see Apple develops the hottest phone on the market and AT&T gets to carry it exclusively and without subsidizing the price. Apple rightfully wants to control the features and marketing of it’s own product (and at it’s own expense) both of which lead to it’s being an overnight success that delivers tens of thousands of new customers and a ton of profit to AT&T. By also absorbing the activation through iTunes it streamlines the process and eliminates headaches for both customers and AT&T. In addition iTunes becomes the mechanism for releasing substantial ongoing free upgrades that will make the phone better than it was at the point of purchase. Apple delivers three home runs:

1. Revolutionary product
2. No hassle activation
3. Ongoing feature enhancements and additions

I seriously doubt that AT&T is feeling slighted or anything less than delighted.

[…] dichiarazioni sono arrivate nel weekend dal co-CEO di RIM, Jim Balsillie. Balsillie, infatti, ha criticato il […]

Cellphones companies in USA are fleecing their customers. They charge for even the smallest of facilities/features.
If you compare the price to India where you make a call for 2.4 cents/min & incomming calls free. SMS for 1.2cents.
The cellphone market is not the free market in USA.

Only through disruptive products like iPhone will the situation change.

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Well no one has mentioned that to all wonderful apple stole the iphone name from Cisco systems. They are known for not caring about fairness and honesty

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Let’s see now:

Claim: RIM CEO claims AT&T is a victim

- AT&T entered the contract with Apple voluntarily
- AT&T is big enough and old enough to practice legal and business due diligence
- Nobody is a victim if the above are true

Conclusion: Being a “victim” not even close to an objective truth.

Claim: RIM CEO is making the assertion

- RIM makes a product, the Blackberry, that competes with iPhone
- iPhone does everything a Blackberry does only more and with better UI
- Blackberry is, for now, cheaper, but that can’t last
- Assumption: a lot of the inability of RIM to compete against the iPhone is due to the costs and feature restrictions of the contract RIM has with AT&T, et al.
- RIM’s problem is they are locked into a contract that restricts they’re ability to compete against iPhone
- RIM apparently lacked Apple’s the vision or negotiation skill they negotiated their contract with AT&T, et al.

Conclusion: the whole article is a competitive smokescreen by RIM made by a CEO who hasn’t been on the ball.

Sorry, no sympathy here. Best of luck Apple!

This is different to the current market where any time our users have a Blackberyr problem, the Carrier is blamed?

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