AT&T Can't Escape Its Bad Reputation

Perhaps the iPhone is just one thorn in AT&T's side. Dropped calls and slow Internet speeds tarnished the carrier -- and not Apple, the maker of the iPhone. So when Sony announced last week its partnership with AT&T to provide 3G service for the upcoming portable gaming system, the PlayStation Vita, the audience responded to the news with groans and boos.

I doubt that's the reaction Sony and AT&T expected from a group of journalists, analysts, and videogame publishers.

It's not just about the iPhone, though that aggravates the situation. Many attendees of the Sony press conference are early adopters and likely have had one or several generations of iPhones. The news that Sony will offer its new handheld gaming system, the PlayStation Vita or PS Vita, stirred up memories of bad connections and just plain blackout areas where they couldn't get service. After AT&T enjoyed a long exclusivity period with the iPhone, it's available on a competing network without as many issues.

Another aggravating factor to the deal with AT&T is the company's network capabilities. The carrier is slowly making the transition to 4G. It is reportedly behind other mobile U.S. mobile service providers in this process. This is a big reason why AT&T plans to acquire T-Mobile and is waiting for regulatory review to complete the deal. But neither AT&T nor T-Mobile subscribers are very happy about the proposed merger, either.

It's hard to say what AT&T can do at this point to gain favor. Of course it could improve service, which it hopes to achieve through the acquisition of T-Mobile. Whether AT&T improves its service through acquisition or ramping up its cell towers and upgrading to 4G, it's a long journey ahead.