It looks as though BlackBerry enthusiasts in the U.S. have yet another reason to hate the iPhone.
Research In Motion Ltd.'s BlackBerry Bold has yet to launch with its exclusive U.S. carrier and it appears that Apple Inc.'s latest iPhone may be the reason why.
Even though the Bold is available in more than a dozen countries, AT&T Inc. has yet to offer the device in the U.S. because iPhone data traffic is clogging the telecom giant's networks, according to analysts.
Both devices use the same next generation (3G) network technology, but it now appears AT&T wasn't prepared for the bandwidth-hogging Apple device and doesn't have the resources to launch the Bold until it cures its iPhone issues.
One reason is that the iPhone lacks the data compression technology that is a hallmark of RIM's BlackBerry devices.
"AT&T really relied upon RIM for its data network management," Canaccord Adams analyst Peter Misek wrote in a note to clients this week. "Recall that RIM manages virtually all of the data traffic for its carriers globally ... AT&T in our view was spoiled by the fact that RIM essentially shielded the carrier from the full burden on the network."
Also, whereas BlackBerry data traffic is channelled through RIM's servers, the iPhone utilizes a "ping-pong" technology which must constantly access AT&T's network in order to receive data and e-mails, placing a great strain on the telecom company's cellular infrastructure. "We believe that AT&T is now realizing that it can have up to 20 BlackBerrys for every iPhone on its network," Mr. Misek said. AT&T will need to spend as much as $1-billion (U.S.) to repair its network, he added.
The Bold launched in Canada with Rogers Wireless Communications Inc. on Aug. 21.
RIM co-chief executive officer Jim Balsillie told a wireless industry conference last week that he expects the Bold will be available in the U.S. through AT&T in October.
AT&T's wireless business did not respond to requests for comment. RIM (TSX) rose $3.03 (Canadian) to $107.63. ATT (NYSE) fell 27 cents to $24.65. Matt Hartley
