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  • AT&T Exclusivity to End in June: Report
    [ame=http://www.youtube.com/watch?v=imFfITYWiOE]YouTube - Brian Marshall is bullish on Apple[/ame]

    Numerous outlets are reporting today on a somewhat startling assertion by an analyst on Bloomberg TV, stating that Apple's exclusive arrangement with AT&T as its sole iPhone service provider will come to an end in June of 2010. He also stated that Apple would be receiving $300 from future partners, rather than the $450 per phone it currently gets from AT&T.

    Brian Marshall is an analyst with Broadpoint AmTech, the information technology, clean energy and defense group within research firm Broadpoint.Gleicher. Marshall named Verizon as the most likely carrier that Apple would start working with after the end of AT&T's exclusivity. Recent rumors of a new iPhone model that would be compatible with Verizon's network would tend to support this assertion, but there has been no confirmation from either Apple or Verizon of any of this.

    Little is known about the details of AT&T's arrangement with Apple. When the phone was first introduced back in 2007, reports suggested that the exclusivity deal would last until 2012. More recently, reports have suggested that the original deal was slated to end in 2009, but was increased by a year when AT&T offered higher subsidies to Apple.

    Marshall says that the current subsidy paid by AT&T is $450, and that the payout would drop to $300 once other U.S. providers start carrying the iPhone. Apple has claimed that it has been successful in other countries in maintaining income levels even after subsidies drop due to non-exclusivity, because they have been able to sell a higher overall number of phones.

    In a separate report today, AppleInsider noted that the end of exclusivity in France has led to the iPhone being the top selling smartphone in that country, accounting for over 40% of sales. And Engadget quotes a report by research firm Bernstein which indicates that Apple's "value market share" in the UK and France "has increased from 32 percent in the latest quarter from 21 percent just three months earlier," when both countries had only one iPhone carrier.
    This article was originally published in forum thread: AT&T Exclusivity to End in June: Report started by Paul Daniel Ash View original post
    Comments 59 Comments
    1. skj8100's Avatar
      skj8100 -
      To everyone saying apple won't make a deal with vw "because of all the i bashing" are mistaken. Apple will do what is best for.....APPLE. But I do agree with others when they say apple more than likely will not release an entire new iPhone for just in carrier in one country.
    1. Ximpostrxx's Avatar
      Ximpostrxx -
      verizon service is BOSS in the tri-state area (i live in jersey and commute everyday to NYC)
      I even got service in the subway with my moto Q on verizon
      i cant waitt!
    1. confucious's Avatar
      confucious -
      Quote Originally Posted by n00neimp0rtant View Post
      Why Verizon? Why make a completely different phone (internally) for ONE carrier in ONE country? They seem to have done very well with the "one version of the iPhone around the globe" deal for the time being. T-Mobile? Plz?
      T-Mobile work on a different 3G frequency in the USA so some alteration would be needed (but not a lot). The biggest problem, I believe, is the lack of infrastructure on T in the USA, I don't believe their 3G network could cope with the volume and that is why people think Verizon is more likely, even though they use different technology.

      Quote Originally Posted by KingDan View Post
      Kraziebone,
      I have t mobile and use the iPhone with no complaits
      What speeds do you get on Edge using speedtest.net app?
    1. skj8100's Avatar
      skj8100 -
      I also live in Michigan and AT&T only has somewhat reliable 3g in two places- Detroit and grand rapids. (There are maybe a couple more spotty covered cities) I live about 15 miles outside of grand rapids and I do not get 3g until I am practically downtown. AT&T 3g coverage is horrible in my opinion. My sprint coverage was always much better with data speeds 3x my edge speeds.
    1. confucious's Avatar
      confucious -
      Quote Originally Posted by skj8100 View Post
      My sprint coverage was always much better with data speeds 3x my edge speeds.
      What speeds do you get on Edge? Is that with AT&T?
    1. TIMBO SLICE's Avatar
      TIMBO SLICE -
      I don't have any complaints with at&t. The only time I havent had 3g so far was when I went on vacation to Maine and only had 1 or 2 bars but my friend's verizon didn't have any at all.

      I live in Virgina and *knocking on wood*, I happily admit.. i have never had a dropped call with my iphone.

      I sometimes get unsent messages but that is when I'm in a building like a school where there are no windows and the walls are real thick. Just my 2 cents.
    1. RonHC's Avatar
      RonHC -
      ......another rumor [i tell myself at night]
    1. sungod661's Avatar
      sungod661 -
      that was very intresting thank you one of the best articles + videos in a while
    1. ecd5000's Avatar
      ecd5000 -
      aint gonna happen, i also love how the verizon xmas commercials show the att 3g map, there less and less everytime they make a new commercial, i live in the lehigh valley,(north of philly) on this new map theres a small dot near philly, HA if only that was true att would have went under last year. FAIL on verizon
    1. robbpell's Avatar
      robbpell -
      my contract with att ends in june how ironic!
    1. JHoffy1's Avatar
      JHoffy1 -
      I have AT&T in metro Detroit area. The coverage is spotty and I often drop calls. When I had Verizon, it was much better to the point that I also have a verizon phone for the areas that I cant use my iPhone.

      That being said, I'm not sure switching to Verizon when the iPhone is available will necessarily solve the drop calls or slow data service problem. I think this stems from the massive amount of data and calls that are made on AT&T because they have so many members, because of the iPhone. In other words... AT&Ts system is crowded and they are just treading water trying to keep up with all the usage.

      Once Verizon comes out with the iphone they too will have to deal with the same phenomenon as AT&T did and also deal with the mass exodus of AT&T people who think Verizon will be better. Hence, dropped calls, slow data, etc.

      I'm gonna take my time moving over to see if AT&Ts service improves once people leave for greener pastures. My guess is that it will. Remember, AT&T is what, 4 years into the iPhone game and that learning/growing curve is important to consider.

      Just my $0.02
    1. lkailburn's Avatar
      lkailburn -
      no complaints really here with at&t in terms of quality of service or anything like that. only thing is obviously wish there was a bigger blanket of 3g coverage. but i live close to the rocky mountains and mountain coverege is not good for any carrier.

      i agree with jhoffy about the sheer amount of data/calls etc from iphone use crippling att and the same will happen to verizon if they get the iphone. its the same reason why there are viruses for windows and few for macs, because everyone has a pc. if everyone had a mac then there would be a world of mac viruses too.

      -Luke
    1. Kronsch19's Avatar
      Kronsch19 -
      Deep inhale...... Okay, here's my two cents.

      I have used Qwest(Not sure if still operating), Sprint, ATT, T-mobile, and switched back to ATT service when the first generation iPhone was released. Over that time span I have lived in Minnesota, Nebraska, Oklahoma, Alaska, California (Los Angeles and Bakersfield), Maine, and Pennsylvania. On top of all that moving I also travel every other weekend for 8 months of the year all across the US. I find it unbelievable that someone could be satisfied with their ATT service. Unless I am in large cities I rarely have 3G service, (I have obviously upgraded to the 3GS since my first gen Iphone) I drop at least 5 calls per day, I receive text messages hours after they are sent a few times a week, and have battery problems that I attribute to the constant switching between 3G and edge. (I do not use bluetooth, push notifications, push mail, or wi-fi and always have them turned off)

      Now, I don't hate ATT because I understand that iPhone sales have surpassed anyone and everyone's expectations both in the US and internationally and ATT could not have possibly been ready to handle this type of traffic on its network. In saying that, I do believe that the service they are currently able to offer due to the amount of traffic on their network and their lack of 3G coverage is by far the worst I have had since my first cell phone in 1997(Keep in mind tethering, although used by many is not officially allowed yet by ATT). I know they are working everyday to catch up, expand 3G service, and everything else but I don't believe they will be able to catch up or will be willing to put enough money into their 3G network before its time to move to 4G. I make it a point to constantly check with co-workers who use Verizon how their service is in different locations when I have lost 3G service or have even lost Edge and have no service at all. In only one instance in the last 3 years have I had more bars in any place than a co-worker using Verizon. I can tell you the building if you are interested. For some reason it is a Verizon black hole and ATT works fine there. It is still true to this day.

      In being fair I'm not jumping on the Verizon bandwagon full out here. Who is to say that the Verizon network could have handled the weight and traffic that the iPhone has brought to ATT's. Even the Droid thus far is a drop in the bucket compared to the iPhone use on ATT's network. So if the future brings the iPhone to Verizon and the network keeps up it still won't make Verizon the be all end all because the initial impact from all the people that switched to ATT to get the iPhone will not be nearly as large as it has been to ATT.
      Everything being said, if Verizon gets the iPhone I'm not expecting their network to slow to a halt as ATT's has. I expect those like myself who are extremely frustrated with a great product from Apple being limited by ATT to switch and thousands of current Verizon customers to upgrade to an iPhone. I think if it does happen the weight of the iPhone load on ATT will lighten and that along with other upgrades will bring better service back to their customers.

      So that's what I think about my service. And if they do bring the iPhone to Verizon and I do switch I say this to you Verizon. Don't stand there like a knight in shinning armor saying how much better you are. Be happy with my business and understand that ATT has brought a great product a long way in this country and reinventing the wheel is always easier than the coming up with the first one. The slow daunting task of blazing the first path has been done by ATT now please let Verizon pick up and sprint down the middle of it so I can have some damn service in every area. I want a map for that!!..... Exhale
    1. JHoffy1's Avatar
      JHoffy1 -
      I hope you didnt write all that on an iPhone... just kidding.. you deserve a Verizon iPhone for that.
    1. Bluprint's Avatar
      Bluprint -
      T-MOBILE WILL BE PERFECT!!!

      but then again I prefer the HD2
    1. snap1500's Avatar
      snap1500 -
      Quote Originally Posted by darwina View Post
      Yeah... I hope so. I'd like to see a phone bill under $80. I don't use the minutes I have, mostly text and data because I have no real friends :P I could only hope there'd be some competitive packages out there.
      T-mobile baby! hahaha. 3 lines, 700 mins, 2 lines with unlimited text, 2 lines with data. $120 total.

      Coverage is not as good but the bad coverage is always where I dont need to make any calls or look at a map so no complaints here.
    1. tudtran's Avatar
      tudtran -
      Wow. I learned a lot from that video. If Verizon carrier iPhone I would love to switch over. At&T is suck.
    1. Ruthle$$Turtle's Avatar
      Ruthle$$Turtle -
      i cant even fully explain way i hate verizon so much. but most of my family and friends HAD them and finally moved to att. i work for a communication(cell tower) company have for 10yrs and we had them as our carrier for years and have switched to att yea every yes every carrier has issues all over the us and that is all due to the amount of data that is being sent... to keep a good signal you need a min of a tower every 10-15 miles. with the amount of ppl and smart phones let alone IPHONES that are being used 24/7 you need alot of antennas. the tower erectors are bizy as hell and with no one wanting to spend money... it slows down the site builds. i talk too and have had most of the carriers out there and i will never go anywhere else... att does more for me than any other carrier.

      another thing do we really thing that apple is going to go to verizon after they have attacked apple with the droid... honestly!!
      att isnt perfect but they have there head in the game and so does apple when they picked att they knew att whats the same thing they do.
      sorry about the lil vent but for real ppl verizon!
      fyi i c more orders for att than any other carrier... att gets multi sites done than flips the switch!!! lol bam! 3g! i will be happy when they finsh our area.


      love my iphones
    1. adp's Avatar
      adp -
      I wouldn't switch to Verizon if they had the iPhone. But I really hope it happens so it brings more competition. Maybe someday I'll switch my iPhone from unlimited T-mobile data ($10/month) to AT&T - granted they lower their data service price.
    1. imilad's Avatar
      imilad -
      I would not want the iphone on verizon... CDMA SUCKS!