Consumer Reports: iPhone May Be OK, But AT&T Wireless? Notsogood

From an e-mail sent out by Consumer Reports, basically trashing AT&T Wireless, the carrier that iPhone buyers will be stuck using.

For several years running, AT&T Wireless--formerly known as Cingular--has been among the least satisfying service providers, according to Consumer Reports' annual customer satisfaction surveys.

In fact, in our latest report, from January of this year, AT&T had "middling to low" customer satisfaction, with static and busy circuits pegged as widespread problems (as they've been in our previous surveys). Frequent service-related problems were compounded by the company's relatively low marks for helpfulness in handling customer questions and complaints.

In addition, the iPhone will run on AT&T's "2.5G" EDGE network, rather than one of the faster "3G" networks available from the major carriers, such as Verizon or Sprint's EVDO or even AT&T's own UMTS/HSDPA network (don't worry about the acronyms; the upshot is that EDGE has much lower bandwidth than true 3G networks). Reportedly, AT&T has been working to upgrade the Internet capabilities of some of its towers to ensure higher minimum data speeds than were originally reported.

But the combination of slower network speeds and poor customer service may not bode well for early iPhone adopters (there are already rumors that a second-generation iPhone will be 3G-capable), especially since Apple's deal with AT&T is a five-year exclusive. And AT&T's just-announced service plans for the iPhone require a two-year commitment.

The good news is that the pricing plans, announced on Tuesday, appear to be competitive. Three versions will be offered, ranging from $60 to $100 per month, and there's a one-time $36 activation fee. The basic $60 plan includes 450 minutes of voice time; an $80 step-up plan bumps voice time to 900 minutes. The premium plan, priced at $100 a month, includes 1,350 minutes of talk time. All three include 200 text messages, unlimited data services, and "visual voicemail," which lets you see the types of voicemail you've received and access them individually, rather than in the order in which they were received. In addition, unused monthly minutes can be rolled over to the next month, and there are unlimited calls between mobile phones.