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Posted on 28-12-2009

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This is a nightmare for the PR department at AT&T, and for New York citizens. There were reports from around the New York Metropolitan area that AT&T website had stopped offering iPhones in that area. Upon typing the zip code of that area, the AT&T website shows that the phone is currently “unavailable” in that area. After verifying this on the AT&T website, The Consumerist Blog called up AT&T customer care and had the following conversation:

Daphne: Welcome to AT&T online Sales support. How may I assist you with placing your order today?

Laura: Hi, I was looking at the iPhone 3Gs and the system tells me that I cannot order one in my ZIP code. My zip code is 11231. (Brooklyn, NY) Is this true? Are iPhones no longer available in New York City?

Daphne: I am happy to be helping you today . Yes, this is correct the phone is not offered to you because New York is not ready for the iPhone.

Daphne: You don’t have enough towers to handle the phone.

Laura: Thank you for your help. So the phone is not available to people anywhere in the city?

Daphne: Yes this is correct Laura.

AT&T CEO Randal L. Stephenson, said earlier this month that he wants to limit the usage of iPhones to reduce the strain on his network. Though this move is in line with his statement, iPhone is still available in NYC stores. This move is not likely to help their networks in a large way as users can always pick up the phone from any store around the country. Although these were only reports till some time ago, BoyGeniusReport got the same response from AT&T, thus confirming the reports. But, AT&T provided no reason to BoyGeniusReport.

According to recent updates, AT&T is telling users that they are not allowing online sales of iPhone due to a fraud. AT&T also sent an E-mail to Mashable.com which said “We periodically modify our promotions and distribution channels.” They gave no information regarding the fraud or any other issues.

Though this move is unlikely to help in easing the pressure on AT&T in any way, it will surely damage their reputation country-wide.