Analyst: Apple will try to extend AT&T deal despite inquiry
updated 04:55 pm EDT, Thu September 10, 2009
Apple expected to continue exclusive AT&T deal
Despite the current government investigations surrounding exclusive relationships between handset makers and cellular networks, a number of analysts expect Apple to extend its iPhone deal with AT&T. iSuppli analyst Francis Sideco believes the continued growth of AT&T's HSPA standard will prove more attractive than the EVDO standard used by Verizon.
"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," Sideco says.
The research company expects the global subscriber base using HSPA to expand from 269 million this year to 1.4 billion in 2012. The EVDO standard, however, is only expected to rise from 145 million to 304 million subscribers in the same time period.
Although the FCC inquiry is taking a broad look at the entire industry, business deals behind devices such as the Pre and iPhone are likely to be individually investigated. The Commission will be assessing the impact of such deals on prices and availability for consumers. Many have expressed frustration with the carriers and handset makers for inflating prices or restricting access to certain phones.
Unconfirmed rumors suggest Apple execs have been quietly talking to Verizon about a possible iPhone deal, even before the regulators disclosed the investigation. Bernstein Research analysts Craig Moffett and Toni Sacconaghi claim a Verizon deal could help to double iPhone sales, although Apple has maintained that it is satisfied with its relationship with AT&T. Despite the larger volume on two carriers, the subsidies would likely be slashed on a non-exclusive deal.
The FCC inquiry remains in progress, with no timetable set for completion. It remains unknown if the Commission plans to tighten regulations based on its findings.
booooo
09/10, 06:58pm reply
booooo.
EternalGuest
Fresh-Faced Recruit
Joined: Mar 2009
Don't see anything wrong with such a deal
09/10, 07:10pm reply
I remember years ago when AT&T cellular coverage wasn't nearly as good here in Florida as it is now.
I also knew someone who lived on Cape Cod who moved to Texas JUST for the telephone service!
I've been a happy AT&T cellular customer for fifteen years, and more recently, a happy iPhone owner for over two.
If people want the product badly enough, they can switch providers and/or move to an area with better coverage. Anyone compelled to live out in the boonies who yet yearns for cellular service is going to have to prioritize their wants.
Or they can wait for AT&T to get its infrastructure in place to handle the relatively new demand which as come about from the volume sales of the iPhone.
DanielSw
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Joined: Aug 2009
Terrible news
09/10, 11:25pm reply
If this is true, this is bad news for all of us VZ customers who have been waiting for the iPhone. I'd love to have one, but I will never switch to AT&T just to get one. The iPhone is cool, but it just isn't worth the loss of call quality; VZ to AT&T is a HUGE downgrade. No thanks. If this rumor is true, then I'll just stick with a plain ol' cell phone along with an iPod Touch. It'd be nice to combine the two devices, but having to switch to AT&T is an absolute deal-breaker.
cmdahler
Fresh-Faced Recruit
Joined: Jan 2005
AT&T to VZ
09/11, 07:14am reply
The problem with your "VZ to AT&T is a HUGE downgrade" statement is it's you personal opinion. For myself, AT&T to VZ would be a HUGE downgrade. I came from VZ to AT&T specifically for the iPhone. I get as good, if not better reception now than I ever did with VZ. I am pay a little more for the iPhone and it's pricing plan but it's no worse than I would be paying on VZ's network to use an inferior phone with data and their crippled features.
People need to stop whining about the iPhone only being available on one carrier. If you don't like it buy one, jailbreak it and live with it. Or, get a touch. Or, buy a blackberry. It's obviously your carriers (VZ) fault that they don't have the iPhone. There's obviously nothing they can offer on their end that would lure the iPhone to their service. Write VZ and let them know you're unhappy. Quit complaining. There is a new stereotype in development here. VZ customers whine way too much.
appleuzr
Fresh-Faced Recruit
Joined: Aug 2006
Unlock the damn phones!
09/11, 03:24pm reply
I have no problem with the exclusivity deals, but please allow legal unlocking of the phone! I travel the world extensively and I will not pay the take-it-up-the-behind world roaming fees. C'mon! $5.99 a month plus $2-$5 per minute??
Let us buy local SIM cards and pay reasonable rates. I bought a legally unlocked iPhone from outside the US at full price (I refuse to jailbreak and then unlock my phone, only to have the jailbreak/unlock break with each update) in order to use local SIM cards.
Person Man
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Joined: Jun 2001