More on iPhone – AT&T exclusivity
One industry analyst says that AT&T will succeed in signing another exclusive deal as the U.S. iPhone wireless carrier, but he is bucking the trend of popular opinion and other analysts.
With all the chatter in recent months about bad coverage and service from AT&T, it has been easy to lose track of the possibility that Apple could choose to continue AT&T exclusive deal on the iPhone in the United States. A lot of iPhone users are unhappy with the dropped calls, poor coverage, lack of MMS and tethering, and a number of other issues, making it easy to believe reports that perhaps Verizon or other carriers will get a chance with the iPhone as soon as AT&T’s exclusive deal ends.
One wireless industry analyst, though, says that it is likely that AT&T will continue its current role in the near term. ISuppli Corp analyst Francis Dieco has said in a report, “Speculation is rife that Apple will end its exclusive U.S. iPhone service deal with AT&T when the current contract expires in June 2010, and begin to offer phones that work with the Verizon network. However, iSuppli doesn’t believe this will be the case. The main reason Apple is likely to stick with AT&T beyond 2010 is the relatively wide usage and growth expected for the HSPA air standard used by the carrier for 3G data.”
In other words, iSuppli is basing its analysis almost solely on a growth in usage of a faster wireless standard at AT&T known as High Speed Packet Access (HSPA). They believe that the global growth in HSPA usage will far outstrip growth in usage of EVDO (Evolution Data Optimized), a different standard used by Verizon, according to a ComputerWorld story. It is worth noting, however, that iSuppli is virtually alone in this belief.
Most analysts, including those at Gartner and J. Gold Associates, believe that Apple will choose to expand its number of U.S. carriers when the current AT&T deal expires. Many of those feel that AT&T will remain in the Apple fold, and that it will have exclusive deals on certain models of the iPhone, but that Apple will bring out other iPhone models and sign similar deals with other carriers based on those new models.
One thing is for certain: iPhone users are fed up with AT&T. Both scientific studies and anecdotal evidence have shown AT&T to have the worst of the four major networks in the U.S. It would seem to be almost suicidal for Apple to stay with AT&T, pairing what is arguably the best smartphone with what is certainly the worst wireless network. Users everywhere are hoping that they can take their iPhones elsewhere in the near future, especially if that elsewhere is Verizon.
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September 11th, 2009
I dont know I have been with att for a couple years now and I like them alot. they have the cheapest rates locally and I have only lost signal a few times and its because of steel beams and vallies.
September 15th, 2009
i think it’s highly probable that apple will sign a deal with verizon. this article states that apple wants to stay with at&t because of the GSM format. when the next iphone comes out in june 2010 its going to be for a 4g network. Both verizon and at&t are currently working on their 4g networks which will both be LTE. Therefore it would be pointless for apple to remain exclusivly with at&t because iphone users are not satisfied with the at&t service, and verizon is the most reliable service in the country.
September 17th, 2009
Basically this whole talk of exclusive contracts is between apple and AT&T. The only other network that can support the iPhone is T mobile. Verizon is barely going to start implementing the 4G LTE standard which is based on GSM which the majority of the world uses. Whats sad is that the full potentialof 3G would not be reached and 4g in it’s begining would be a lil faster than 3g until the rest of the world changes to 4g, 3g will be dominant. It’s not like verizon is better they are just as expensive as AT&T…
January 31st, 2010
I would like very much to know something…
What advantage does Apple have by having an exclusive contract with one wireless carrier?? I see this as a limitation myself, especially when that exclusive contract is with one of the worst wireless service providers. The iPhone is an amazing device, the best smartphone out there hands down. I bought one and absolutely loved the “phone”, but I returned it within 2 weeks because of very poor reception and dropped calls. I could not even use it in my own home, and I live in the city. Granted its a small city of 36,000 but within 1/2 mile of an interstate highway. WHY would Apple not open this phone up to the millions and millions of other consumers??? I just don’t see their reasoning here.