iPhone service in Montana - Enter Dark Territory

The following email was sent to Randall Stephenson, CEO of AT & T, and Tim Cook, Acting CEO of Apple:

I moved to Montana from Washington in May 2009 and AT & T notified me on July 2, 2009 that they will be cancelling my service as I am in violation of my contract with them. I use my iPhone for business and travel to other parts of the country but apparently Montana is one of the states AT & T in which they cannot service iPhone data economically. It was explained to me by your representatives that the cost for access to other carriers exceeds what I pay on the AT & T flat rate data program.

AT & T cell service in Terry, Montana is about the same as Verizon Wireless. Dropped calls, not receiving calls and voice mail messages not received are the rigor with my iPhone. I had great service in Seattle, Washington where I purchased the phone in September 2008.

An email to each of you resulted in a call back from a representative in the Office of the President of AT & T and Apple. But all I received was sympathy and lots of apologies with no solution. The first customer service representative I contacted offered to switch my account to Verizon for me and suggested buying a Blackberry phone. I have just done so without her help and am waving AT & T goodbye.

The following article from Bloomberg tells the story on how exclusive arrangements like the one between AT & T and Apple is good for you but not good for the consumers is being investigated by the FCC.

"IPhone Probe to Focus on Markets Without Service, FCC Head Says
By Todd Shields
July 31 (Bloomberg) -- U.S. regulators probing wireless- phone contracts will focus on markets where Apple Inc.’s iPhone and Palm Inc.’s Pre aren’t available to consumers, the chairman of the Federal Communications Commission said.
“There are markets in the country where if you wanted an iPhone, if you wanted a Pre, you just couldn’t get it -- from anyone,” Julius Genachowski said in an interview yesterday. “So one question is, is that consistent with broad consumer interests?”
The agency also will consider if innovation is promoted or hindered by exclusive arrangements such as those that limit the iPhone to customers of AT&T Inc. and the Pre to Sprint Nextel Corp. subscribers, Genachowski said.
Genachowski, 46, declined to say what the next steps will be in the investigation, which the agency announced last month after four U.S. senators asked it to examine the exclusive deals. An AT&T executive told a June 17 hearing the deals spur innovation and help lower prices. Verizon Wireless said this month that new deals with handset makers will last no longer than six months, down from one to two years for most contracts.
“Promoting competition is absolutely a main function of the FCC,” said Genachowski.
He took office June 29 as the Obama administration’s choice to head the independent agency that sets rules for telephone, cable and broadcast companies.
Fostering high-speed Internet connections, or broadband, is a priority for the FCC, Genachowski said.
“There’s absolutely a sense of urgency in Congress, the White House, here at the agency, that we need to make sure that the United States communications infrastructure is appropriate for the 21st century,” he said.
Preparing Broadband Plan
Genachowski declined to say whether the agency would seek to write new rules to ensure that Web companies treat content providers equally as it readies a national broadband plan that is due to Congress by February.
The FCC last year censured Comcast Corp. after concluding the largest U.S. cable company had interfered with subscribers’ Web traffic. A lawsuit by Comcast seeking to overturn the decision awaits oral arguments in the U.S. Court of Appeals in Washington.
“We expect to prevail,” Genachowski said.
“There shouldn’t be any doubt that the FCC will enforce non-discrimination,” he said. “The Internet needs to remain open.”
Genachowski said he has devoted time to meeting with FCC staff.
“My visits around the agency have convinced me that the agency needs to be retooled and revitalized, and that that’s not a controversial proposition inside the FCC,” Genachowski said.
‘Shortchanged’ Consumers
At Genachowski’s June 16 nomination hearing, West Virginia Senator Jay Rockefeller, the Democrat who heads the Commerce Committee that oversees the FCC, said the agency has “shortchanged” consumers. Rockefeller told Genachowski to “fix” the agency.
Genachowski said yesterday that he didn’t want to comment “on where the agency has been.”
In December, congressional Democrats said his predecessor, Kevin Martin, a Republican, abused his powers and created a “climate of fear” at the agency. Martin followed the same procedures by Democratic and Republican chairman alike, an FCC spokesman said at the time.
Genachowski attended Harvard Law School with President Barack Obama and helped shape his technology agenda. He was an adviser to IAC/InterActiveCorp Chief Executive Officer Barry Diller, and earlier served as an attorney at the FCC and a Supreme Court clerk."

Last Thursday while I was in Billings dropping off my daughter at the airport I checked with the Best Buy store in Billings on iPhone availability in Montana. After the clerk told me that their store was not allowed to carry the iPhone he proudly told me that he has a family member in town who had obtained one by using his cousin's Denver home address to get one and sign up with AT & T. So it's legal to own and wear a gun on your hip in Montana but AT & T forbids you to use the iPhone there!

Hello Blackberry Storm goodbye Apple iPhone.

AT & T - Apple iPhone service in Montana not allowed

The email below was sent to Tim Cook, acting CEO of Apple, to let him know about my frustations with the iPhone cell and data service in Montana. Basically AT & T has told me that they do not plan on to service this area of the country.

Bob van der Valk

Mr. Cook:

My original email to Randall Stephenson, CEO of AT &T, received great confusion by their customer service personnel when I asked them a very simple question: "When will AT & T cut off my service?" It took three phone call from Justin Krischenmann in the Office of the President for AT & T to finally get the correct answer. I will be cut off 90 days from the date after receiving my first notice of violation of terms my contract.

I am forwarding you the email sent to Mr. Stephenson to let him know how I feel about his company's service.

Bob van der Valk
508 S. Washington Ave.
Terry, MT 59349
(406) 635-4233
(971) 67-2975

Mr. Stephenson:

I have found out more information about the exclusive AT & T arrangement with Apple by posting my original complaint on your web site at:

http://forums.wireless.att.com/cng/board/message?board.id=reportservice&message.id=43465&jump=true

I work in petroleum marketing and what your company is doing would be called cherry picking in my business. You will not be able to continue promote your brand in the US as you exceed your capacity and the iPhone cell phone concept will sink as a result.

The iTouch and iTouch Tablet will soon take over the main part of the business as Apple continues to promote their many applications which in turn will require more data usage on your system than you are currently unable to service in areas such as Montana. The mobile cell phone business will go to the company with service in the widest service area. Below is the last reply I have posted on your web site.

I look forward to your response.
Bob van der Valk
508 S. Washington Ave.
P.O. Box 711
Terry, MT 59349
(406) 635-4233
(971) 678-2975 cell

"I just received my second text message and email notice from AT &T that I am in violation of our contract. I had asked Justin K. in the Office of the President for AT & T to quit sending notices once a customer has like me reacted. It just infuriates me as I do not like to be threatened.

I now know the consequences of my actions by not reading the fine print in our contract about moving out of one of their prime service areas. Shame of me for my neglect. This thread of postings is being forwarded to Tim Cook, acting CEO for Apple, for his follow up.

On a lighter note I have my daughter Marissa visiting us here in Terry, Montana this week. She is a techi and has now installed WiFi at the place where I work in town in order for me to continue to use my iPhone as an iTouch. She lives in Los Angeles and has Verizon Wireless as her carrier. Of course, in that area cell phone customers have many carriers from which to choose but she thinks Verizon has the best coverage by far not only in LA but also in the hinterlands of the US. Marissa is a Scientist working for Amgen in their Thousand Oaks office and travels all over the US for conferences and meeting people.

This will be last thread from me on this web site as I have given up on AT & T or should I say they have given up on me. When they eventually do cut me off it will be the last time I will do business with them even if I have to start using smoke signals to send messages to my family and friends.

Goodbye AT &T."

Under Siege - Dark Territory - My AT & T Service Complaint

Dateline: Terry, Montana
July 16, 2009

I received a call from Justin K., Office of the President, yesterday afternoon responding to my complaint in the email I sent earlier that day to Randall Stephenson, the AT & T CEO, which reads:

"Mr. Stephenson:

I am contacting you direct since I have been unable to obtain satisfactory answers to my question about the lack of service in the area to which I recently moved.It seems like my wife and I, both of us own iPhones, have entered Dark Territory insofar AT & T is concerned.

We purchased our cell phone in Issaquah, Washington back in August and September 2008 after receiving satisfactory service from your company in Las Vegas, Portland - OR, and Seattle since November 2006. We especially liked the fact that you offer roll-over minutes on your program.

Verizon, who had been our carrier for twenty years prior, did not respond to my inquiry as to why did not offer a similar rate program for their cell service.My complaint with your company is that your customer service is more interested in telling me chapter and verse according to AT & T policy rather than dealing with me as a valued customer.

Both customer representatives, whom I am copying with this email, kept apologizing profusely for not being able to help me keep AT & T as my carrier in Montana. The policy and the contract I signed was explained to me in every detail, something your sales people at your store neglected to do, and offered to set up an account for us with Verizon Wireless.

I objected to that only because it will make my iPhone useless other than as a mini-laptop with no access to email etc.My real complaint is that your marketing strategy has become very obvious to me. You are only interested in providing service in areas where you are a direct carrier.

The hardware used towards that purpose has become secondary and as your exclusive with Apple is expiring soon will not be your main driving force to obtain profit for your stockholders.

Thanks for listening to me and would appreciate a response (hopefully positive) back from you as soon as possible.

Bob van der Valk"

Justin said that he would look into my complaint and get back with me today. I will post his response to this blog as soon as it received.

Below are the comments I posted on the Seeking Alpha web site article:

http://seekingalpha.com/article/148431-forget-the-feds-apple-is-doing-just-fine-wrecking-the-wireless-business?source=commenter#comment-590157

Updated, 12:01 p.m.: The expiration date of the exclusive iPhone deal between Apple and AT&T has not been officially released, but in April the Wall Street Journal cited anonymous sources saying AT & T is hoping to extend their deal with Apple into 2011.

Here is my original posting to the AT & T Forum web site:

My personal experience with AT&T has been very bad since moving to Terry, Montana from Seattle, Washington. Upon our arrival I was happy to find out that all of my iPhone applications worked as long as have WiFi is available.

Cell phone service is intermittent in the Eastern Montana area, since we are located near the Badlands, and even the local cell service providers are having problems staying connected.

Lo and behold I received a text message and email from A T & T/Cingular on July 1, 2009 that I was in violation of my contract by being outside of their direct service area. I called the phone number listed in the messages the next morning and was advised that I had 30 days to decide to cancel my contract, without penalty, and find another service provider.

Apparently the contract reads that if I use my cell phone for data and phone use over 40% in areas not directly served by A T & T/Cingular my contract could be voided.

I was surprised but told the person that I understood that they had rules and I had agreed to them. Although I don't remember reading any of the gobble de coop stuff they made me sign when I proudly picked up my iPhone birthday present last September at one of their direct sales stores in Issaquah, Washington.

Here comes the real kicker, the customer service person offered to call Verizon Wireless to change over and set up my account with them. She told me that she would call me back in 20 minutes to confirm it with me.

I told her to be sure that I could keep my iPhone with the new carrier as I am now practically married to it. I bathe, eat, drive and sleep with it. In fact my wife is thinking of becoming one of my applications so I will give her as much attention.

She suggested that I get another phone perhaps a Blackberry since they have similar applications and Verizon is one of their carriers. I declined her offer and am still waiting for a call back from her.

Time is ticking and I have only 17 days left before I am cut off.In case one of the A T & T/Cingular executives happens to read my personal lament, please let me know. I tried AT&T once more this morning (July 14th) and received similar response from their customer service supervisor.

I will be sending emails to her well as her supervisor Rachel. I am also calling the CEO of AT&T later this morning and will post any responses negative or otherwise I receive on this blog. Your comments are invited and you can email them to me at: tridemoil@aol.com