iPhone (or, more specifically, iPhone users) are strangling the AT&T network. It’s not a pretty picture for AT&T.

AT&T must know what their customers think of their network. If AT&T customers are telling me their tales or woe, they’re telling AT&T. If I were handcuffed to a two-year contract where I was paying big bucks (you can easily end up paying AT&T $150 a month), I’d be pretty emotional if I found out I was lumbered with the appalling levels of service that some folks seem to endure.

We started with Cingular wireless and the service was great everywhere in the country. Even back in the old analog phone days (yes, we’ve been with them quite a while) the service and coverage areas were great.

Then AT&T got involved. Before the iPhone we were already suspect of AT&T service. One of the largest predatory lenders had a seat on the board of directors at AT&T. The company was sued for failing to pay taxes on phone service, claiming they were an advertising company instead.

How did that shady deal take place? Apparently when someone used a pay phone (good luck finding one now) AT&T forced the caller to listen to an advertisement first.

The FCC sued, AT&T lost the suit, and paid for the dumb idea.

Who was the big loser in that deal? Rural telephone companies and children. Part of the surcharge was supposed to go to rural schools.

In another suit, AT&T Inc. paid $550,000 to settle claims that it erroneously billed nearly 50,000 people in Pennsylvania for long-distance service. Pennsylvania Attorney General Tom Corbett said investigators determined that AT&T, for approximately three months in 2004, erroneously billed nearly 50,000 people $3.95 per month for a discount long-distance service plan, although those people claimed they were not AT&T customers or had canceled the service.

When a predatory lender and former CEO of Household International is on the board of directors the company is bound to suffer. The news said this about Aldinger in May 2009:

In the recent Household Financial securities lawsuit jury trial (about which refer here), among the individual defendants who were found to have acted recklessly in making public disclosures was Household director William Aldinger. As a result, Aldinger not only faces the prospect of having to pay monetary damages; he also faces further questions about his continued service on other corporate boards.

As reflected in a May 12, 2009 Chicago Tribune article (here), Aldinger serves on the board of four other publicly traded companies: Illinois Tool Works; AT&T; Charles Schwab Corp.; and KKR Financial Holdings LLC. As the article notes, “the verdict raises the question of whether Aldinger should have to resign from the boards.”

Now, in September 2009, our AT&T wireless service is right where we did not want it to be. Our fears have been realized. Service is terrible. “Waiting for data service” seems to last forever. Data transmission is slow. Dropouts are frequent.

Now I will pay my recent AT&T bill of $170.

By the way, how much did William F. Aldinger III earn as a director of AT&T in 2008? $263,042 is your answer.

AT&T maintains that while it has an agreement with Apple to restrict voice applications that leverage wireless networks operated by AT&T, it retains no control or review privilege for any iPhone application and Apple alone acted to remove the application. In addition, AT&T said the agreement limiting VoIP applications did not extend to VoIP apps that leverage the iPhone’s WiFi capabilities.

In the letter AT&T specifically mentions that part of the initial iPhone exclusivity contract required Apple to block VoIP calling functionality on the iPhone in order to protect AT&T’s monthly service revenues.

AT&T said in the letter that it would take a fresh look at allowing VoIP over its 3G data network as a result of the controversy regarding the Google Voice removal and subsequent FCC probing of its practices related to VoIP.

We use Google Voice, and before that Grand Central, and consider the “telephone number consolidation” service a valuable asset.

Truphone 3.0 improves presence and IM capabilities by combining many popular IM applications like AIM, Skype, and Yahoo! Messenger on page for easier navigation. The 3.0 release also lets users know when other Truphone for iPhone users are available with presence icons.

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• Add, edit and dial personal or business contacts directly from the app

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Start using RingCentral Mobile on your iPhone and enjoy these benefits:
Mobility. Take your RingCentral number wherever you go.
Easy Access. Listen to voicemails and read faxes on your iPhone.
Privacy. Keep your personal number private, when calling from your iPhone.

PC World says that users won’t be able to place calls over a cellular data network; this is a protective sop thrown to the carriers so the app won’t (supposedly) diminish long-distance and roaming minutes. Presence and IM work the same and go over whatever data network is available; cellular or WiFi.

Skype for iPhone will use phone numbers directly from the iPhone’s address book and will also helpfully display Skype contact photos. Conference calling is available, but right now, an iPhone user has to be invited in.

Other features not available in the first version of Skype for iPhone are SMS, video, file transfer and voicemail. However, iPod Touch users will also be able to load and use Skype.

New features include the introduction of a dial pad and the ability to make VoIP calls to landlines and mobiles via Skype-Out. Nimbuzz provides the available Skype credit left on the dial pad when using Skype Out for phone calls to landlines and mobile phones. New VoIP call options are available through the company’s global affiliate SIP partners, including Gizmo5, Vyke, and SIPgate.

The networks are integrated into the interface to use Nimbuzz for cheap international calls to landlines and mobile phones over WiFi. A two week online banner campaign to promote iPhone SIP calling functionality will be conducted on partner sites Gizmo5, Vyke, and SIPgate.

In its press release, Nimbuzz also took the time to brag about adding one new user in less than 4 seconds, translating to over 20,000 new users a day; however, the company would not disclose the total number of users it has According to an October 2008 user survey, 95 percent of Numbuzzers would recommend the service to a friend. There are also signed manufacturer partnership agreements with RIM, Spice Mobiles, and Toshiba.