alt Hacker NewsI saw a story once, which may well be completely made up, about why AT&T got out of the cell phone business. They had a research project, but reliability was an issue. They couldn't see a way to do better than 1 dropped call in 10,000. Their standard for POTS at the time was 1 in 2 billion.
Seeing that the tech would never be good enough, they sold off the whole thing for cheap. Years later, they bought it back for way, way more money because they desperately needed to get into the cell phone business that was clearly headed to the moon.
I totally understand the pride they had in the reliability of their system, but it turns out that dropped calls just aren't that big of a deal when you can quickly redial and reconnect.
Seems a little sus. AT&T basically created the cellular mobile phone, and built up an analog, then digital system (D-AMPS/TDMA). AT&T sort of sold out the mobile business in 2004 to Cingular (BellSouth) because TDMA was a dead end. They then bought BellSouth back in 2006 and carried on with CDMA.
Those old phones had a long range. It was hard to make small ones because the old AT&T towers were much farther apart, up to 40km. Meanwhile, their competitors focused on smaller coverage areas (e.g. 2km or less for PCS) and better tech (CDMA), and it seemed to pay off.