40% Would Leave AT&T for Verizon: Report

[Paul Daniel Ash]

As rumors swirl about AT&T's long anticipated loss of its iPhone exclusivity deal, one Wall Street analyst has warned that the carrier could lose 40% of its iPhone customers to a second carrier. And though pretty much everyone assumes that second carrier will be Verizon, a new (totally unsubstantiated, of course) rumor has turned up suggesting that Sprint, the nation's #3 wireless carrier after AT&T and Verizon, and AT&T may get the phone.

As many as 6 million of AT&T’s 15 million iPhone customers would leave if they had another option, according to a Barron's report highlighted by Cult of Mac. Davenport & Co. analyst F. Drake Johnstone told his customers that the carrier is obviously rattled by something it is hearing from its iPhone partner, and that this is the reason why we're seeing steps like AT&T jacking the early termination fee for iPhone customers from $175 to $325. Johnstone says that “AT&T is clearly worried that it will lose customers once a competing carrier such as Verizon begins carrying the iPhone."

In addition to defectors from AT&T, current Verizon customers are a potential huge market for Apple if it ever produces a phone compatible with Verizon's CDMA2000 network. A survey done by Alphawise for financial giant Morgan Stanley found that 17% of Verizon customers would be “very likely” to purchase an iPhone if they could do so without switching carriers. Persistent - though completely unverified- reports indicate that even if Apple does make a CDMA-capable iPhone, it won't be available until later this year, possibly in September.

However, a fresh rumor reminds us that there is more than one big CDMA carrier in the United States. In a report that should be taken with about a metric ton of salt, TheTechUpdate (via MacRumors and pretty much everywhere else) is reporting that they got an email from a Best Buy employee claiming that the iPhone will be available on Sprint next month. "I can confirm that Sprint will be carrying the iPhone beginning in June," the email from someone at "a Best Buy in Pennsylvania" reads, claiming that "[t]hey’ve begun to grease the wheels for advertising." MacRumors points out that it's pretty unlikely that a Best Buy employee would have this kind of inside information, but also notes that they've heard "similar rumblings from a Sprint-connected source." It does make a kind of sense: if Apple's going to go to the trouble of making an entirely separate model, they're probably not going to do it just for Verizon.

[zeroGsti]

I sure the hell would leave. I get dropped calls all the time.

[s4mb4]

i too get dropped calls which is very annoying, but the data speeds are so pleasant i would have a hard time deciding. I have Sprint with a Palm Pre and the calls are great, but the data speeds suck....

[sobeniceguy2]

I'm happy with mine....for now.

[monadzback]

I have been getting about 7 dropped calls a day now. So has everyone else in my area of KY.

[CaptainChaos]

35% would return to ATT before their first months service with Verizon was over. I polled 12 people and they told me so.

[billchase2]

Yeah, AT&T sucks. I had much better luck with Sprint before I made the switch for the iPhone. My plan was sooo much cheaper and the coverage was better.

[Jawcl]

I did ditch it for another carrier, Alltel haha. It's good where I live, but I've been seeing it roams off Verizon all the time

[chuckiecheese]

The wouldn't switch to Verizon until they get their data working simultaneously with voice.

[CaptainChaos]

Verizon owns Alltel

[iBwizzle]

No thanks... I love the fact that I can easy switch phones by swapping the sim-card!

[dwightmcc]

I have been with Cingular/Bellsouth/AT&T forever and I just cant see why everyone bashes AT&T so much. I live in Atlanta Ga, my coverage is great. I use MyWi to tether my iphone 3gs everyday flawlessly. Matter of fact my tethering speed is faster that DSL!!! I get an occasional dropped call but its nothing to cry about. Last year I drove from Georgia to Yellowstone National Park and I cant really remember having trouble then either except that it was Edge network once we got out in the boonies. I will stay with AT&T.

[mikey1027]

If you live in an area where AT&T has strong coverage then quality is great and if you live in an area where AT&T does not have great coverage then the quality will be poor. People should stop choosing a cell phone carrier based on the phones that they offer and choose based on the area you live in and which company has the best service. If you switched carriers just to get the iPhone, then deal with it or switch back and find a different phone. I've had the AT&T for the past 5 years and had the same quality of service before and after the release of the iphone.

[Bleeditout2130]

I'd be gone in a second.

I'm tired of having the most advanced phone among my friends, but being the only one who gets a few dropped calls a day and can't get service in spots they can.

ATT blows....

[rsmith7]

If forty percent leave ATT, then there is more bandwidth for the people who stay. This move will balance the data demand.

[Exo III]

AT&T may have good service and fast network speeds, but it's there contracts, customer relations, and prices that I don't like. I received an email from them stating that I had to switch to an iPhone data plan. I've had the iPhone for 2 years now with the standard data plan and have never had a problem. It's factory unlocked and therefor should be just like any other non-exclusive phone.

[saunupe1911]

I live in Dallas and I drop calls all the time. It's actually very embarrassing, especially when it's a business call. It's sad because AT&T is based here. You would think they would take care of home a little better.

[sucram6791]

i hope people leave, itll give me better service because not as many people will b draining from it

[saunupe1911]

Yeah AT&T sucks in Florida. It doesn't even work in the suburbs of Tampa. I have to shut my phone off when I visit.

[lili4311]

Too bad I left Sprint and never paid my cancellation fee :P I'm screwed with getting them back