Moneybox

AT&T Planning To Spend $150 Million on Lumia 900 Marketing

Microsoft and Nokia are betting their future on the Lumia 900 for the very clear reason that they’re getting squeezed out of the smartphone market. But AT&T’s decision to go big on the phone to the tune of a $150 million advertising campaign is a bit more surprising. Their concern, as illustrated above, is that having lost iPhone exclusivity Verizon is catching them in subscribers.

But if AT&T’s problem is that losing iPhone exclusivity is a problem because iPhone is a uniquely valuable platform, then talking about the Lumia 900 doesn’t solve the problem. Conversely, if Windows Phone is actually superior to iPhone then (a) iPhone exclusivity isn’t that big a deal and (b) AT&T is doomed anyway because they don’t have an exclusive right to Windows Phone just to this one particular Windows Phone product. Meawhile, common sense says that AT&T’s actual problem is its reputation for having an inferior network to Verizon’s and the forward-looking problem of offering LTE in fewer markets. That suggests that the $150 million would be better spent on upgrading network infrastructure rather than marketing.