Analyst on iPhone and ATT

Despite the current government inquiry into the exclusive relationships between handset makers and carriers, Bernstein Research analyst Craig Moffett suggests the iPhone has not been entirely positive for AT&T. Apple's device has contributed to network strain, with many users criticizing AT&T for blocking VoIP apps and tethering.

“Apple has radically tilted the strategic playing field away from the network operator in favor of the device manufacturer,” Moffett says. “Remarkably, Apple has so thoroughly stolen the customer relationship - who would argue that Apple iPhone customers’ first affinity is to the device rather than to the network - that the network is not only irrelevant, it is rather a source of derision.”

AT&T has also been blasted by a number of developers. While Apple has been criticized for the lack of clarity regarding its App Store approval process, many rejections have been blamed on AT&T. A variety of apps have been forced to restrict data transfer to Wi-Fi instead of the carrier's 3G network.

Moffett suggests iPhone users' "voracious data appetites" have been estimated to exceed the standard average by a factor of ten. The overburden is said to be particularly problematic in coastal cities such as San Francisco or New York City.

Although the government is investigating the potential negative side effects of exclusive relationships in the wireless industry, Moffett claims the deals may have had a positive influence for consumers. He cites an improvement in the average price for unlimited data and voice plans, which have dropped by 55-percent since February.

“In short, the iPhone seems to be doing just fine at wrecking the wireless business without the government’s help,” Moffett writes, adding that "we would be surprised if anything comes of the government’s saber-rattling about handset exclusivity (even if, ironically, it might actually help save the wireless carriers from themselves.)” [via Barron's]

by MacNN Staff