AT&T Exclusivity to End in June: Report

[Paul Daniel Ash]

[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.

[hfinmyblood]

wow, i actually wouldn't mind going to verizon with the Iphone, they have a lot of 3G areas

[bbillh77]

Game on let us see what happens

[smooth22]

From my experience with Verizon they over charge as well.

[xxfr0stbytexx]

I'd rather be with Verizon then at&t...

[FoneWeasel]

Until we see a FCC filing for a CDMA iPhone I wouldn't hold your breath on Apple going to Verizon. Why would they bother with Verizon when it'd require them to produce a special iPhone just for the Verizon market when the current GSM iPhones are compatible all over the world.

[hfinmyblood]

From my experience with Verizon they over charge as well.

i've heard of this before. Hopefully they fix this problem.

[Home Skillet]

I have no complaints with AT&T.

[swiftbmx]

Until we see a FCC filing for a CDMA iPhone I wouldn't hold your breath on Apple going to Verizon. Why would they bother with Verizon when it'd require them to produce a special iPhone just for the Verizon market when the current GSM iPhones are compatible all over the world.

I remember reading somewhere that they are looking to create a hybrid GSM/CDMA phone much like the Storm that would have all bands so that it would be a "true" international phone and capable of being used ANYWHERE.

[rhekt]

i hate verizon. no coverage...dont be fooled by their smear campains.

hell i could draw a map for you and with a blue ink pen, mark in every state in the US and call it ATT's 3G coverage...it wouldnt be true though. and neither is verizons claim to their coverage. i switched to ATT due to verizons inability to give me coverage.

i even had a year left on my commitment, but not only did they let me loose @ no charge but they also refunded me part of my last payment because they admitted i was receiving crappy coverage.

[hfinmyblood]

i hate verizon. no coverage...dont be fooled by their smear campains.

hell i could draw a map for you and with a blue ink pen, mark in every state in the US and call it ATT's 3G coverage...it wouldnt be true though. and neither is verizons claim to their coverage. i switched to ATT due to verizons inability to give me coverage.

i even had a year left on my commitment, but not only did they let me loose @ no charge but they also refunded me part of my last payment because they admitted i was receiving crappy coverage.

good info.

I want 3G where i live. But if Verizon sucks even worse....

[kraziebone]

I have no complaints with AT&T.

Really? Absolutely none? Have you ever been with another carrier? I'm curious how others feel about AT&T because it seems like everyone loves their iPhone but hates their service. I have been with T-Mobile with the iPhone and have had a very satisfying experience in terms of service so now I'm with AT&T and I hate the dropped calls and SMS not sending, I know it's AT&T and not the iPhone. I started with a smaller company named cricket and then moved to verizon, then to T-Mobile and then finally to AT&T and I believe verizon was definately the strongest but I had to leave cause it was too expensive and back then they didn't gave unlimited SMS. How does everyone feel about their service with the iPhone?

[extremzocker]

competition is always good...

[darwina]

competition is always good...

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.

[confucious]

Interesting if true. I just hope they produce a separate model for Verizon and don't try and cram in CDMA for the rest of the world.
In other countries one model works on all carriers without alteration (apart from the Chinese version without WiFi) this would not be the case if they went with Verizon.
But choice is good, it will be interesting to see how it turns out.

[ggrassmid]

I travel to different states; Kentuck, Ohio, Indiana, Michigan, Illinois, and Wisconsin mainly. Verizon by far has better coverage in all the places I would be with my iPhone for that. Just going from Cincinnati, OH area to my parents in Grand Rapids, MI I loose service in several spots with ATT. Not that Verizon has coverage "everywhere" I would like to be able to use my phone if needed on MAJOR roads and highways, which Verizon definately has better service for, in my experience. I would welcome a Verizon iPhone. My 3g will be 2years old in June anyways and my ATT contract will be up, definately be interesting to see what happens.

[n00neimp0rtant]

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?

[KingDan]

Kraziebone,
I have t mobile and use the iPhone with no complaits

[Vintagecondom]

Like said in a recent post, I have no complaints with AT&T. I've had nothing but good service with them. I have full bars almost wherever I go. The only time I do not have service is when I'm in school. My school however, was designed to embrace hurricanes and is practically a gigantic bomb shelter. Due to its thickness, I get no service. When I walk outside though I have full bars.

So I'm done with that, I have great service and to be honest with you all I could care less how your service is. Mine is fine.

I do have something else to say though. If the iPhone would go to Verizon or T-Mobile, what do you think will happen? I can assure you, there will never be another "iPhone killer" again. Instead EVERY single person, Adults and children alike, will have the phone. Remember when that cool flip phone called the razor was released? Do you want the same thing happening to the iPhone?

I sure as hell don't.

[ip3]

AT&T have a 5yr deal with Apple that will end june 2011 not june 2010! besides that small detail, i doubt that apple will release the iphone with Verizon, after all of the commercials bashing Apple and the iPhone!