AT&T CEO: Not Worried About Verizon's Android Position

15th Jun 2010 17:51

By Roger Cheng Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--AT&T Inc. (T) Chief Executive Randall Stephenson said he isn't losing any sleep over Verizon Wireless's strong current position with Android phones, adding that things will change dramatically over the next six months. One of those changes is the evolving, complicated relationship between AT&T and Google Inc. (GOOG). The companies have been on opposite sides of the hot-button topic of net neutrality but are partners on the wireless end, as AT&T sells phones based on Google's Android operating system. AT&T, due to the popularity of Apple Inc.'s (AAPL) iPhone, has been slow to add Android phones; however, that might need to change when the wireless carrier's exclusive agreement to sell the iPhone ultimately runs out. Verizon Wireless, meanwhile, has knitted a tight alliance with Google to sell phones under the Droid name, in essence carving out a position as having the top-tier Android devices in the industry. Stephenson said he doesn't feel the need to catch up to Verizon Wireless and its Android position, noting that AT&T remains the leader in the smartphone category. The industry is moving quickly, and he sees radical changes over the next six months. In a meeting with reporters and editors from The Wall Street Journal and Dow Jones Newswires, he said AT&T will carry more Android phones this year. AT&T already has begun to expand its lineup. The carrier said Monday that it would sell its second Android phone, HTC Corp.'s (2498.TW) Aria, starting June 20. AT&T will have options for a follow-up device; Stephenson said the top handset manufacturers are pouring money in Android in an effort to build the next flagship device. Beyond phones, Stephenson noted that he sees more connected Android-related products such as tablets. But even the embrace of the Android hasn't come wholeheartedly. While complimenting the operating system, Stephenson said Google insists on having its search engine prominent on the device, which contradicts its claims of an open-source platform. A notable exception is AT&T's first Android phone, the Motorola Inc. (MOT) Backflip, which came bundled with the Yahoo Inc. (YHOO) search bar instead. Much of the tensions between the companies stem from the opposite positions AT&T and Google hold in the regulatory world. Google believes there should be one price charged for the delivery of Internet traffic, while AT&T wants to be able to get a return on its investment by charging some companies more for a guaranteed level of speed. Stephenson also noted a difference in attention that recent gaffes by the two companies attracted. AT&T faced an embarrassing and high-profile mistake last week when hackers exploited a vulnerability on its customer service website that unveiled 114,000 emails addresses, including those of public officials, celebrities and military personnel. Stephenson said the company took responsibility for mistake and has addressed the problem. The CEO added, though, that Google appeared to get less attention from media and government regulators for its security problem last month, in which the company admitted to accidentally harvesting personal data over unsecure personal Wi-Fi networks during its Street View sweeps. The company's Street View service uses camera-equipped vehicles to take street images and mark the location of Wi-Fi networks. -By Roger Cheng, Dow Jones Newswires; 212-416-2153; [email protected] (END) Dow Jones Newswires June 15, 2010 12:51 ET (16:51 GMT)