Saturday, June 19, 2010

AT&T and Verizon rumors.

Pretty much very forth coming announcement that Apple or Verizon makes has rumors of a Verizon iPhone swirling around them. Analyst and customers alike are chomping at the bit for an announcement that the iPhone will be going to any other US carrier other then AT&T. A recent leak from Taiwanese manufacture Pegatron, has breathed new life into the rumors of a CDMA version of the iPhone.

So what will happen if AT&T looses there exclusivity deal with Apple? How many of there current iPhone customers will drop everything to get to a better service provider? It seams to me that there will be a great many iPhone users that would be willing to pay there early termination fee. I'm sure many people have already dropped there iPhone for an Android based phone in order to get better coverage and service from another carrier. It seams the new iPhone 4 has won back some of those that left the iPhone. But in the end a Verizon iPhone would devastate the loin's share of the smart phone market AT&T has had with the iPhone.

As with all of this for the past few years it may all just be rumors. One thing is for sure, AT&T will take a huge blow to there customer Base and thus there stocks when the iPhone goes to a different US based carrier. AT&T has had ample opportunity to prevent such bad fallout. There customer support could be better, they could expand there network. Part of the problem is there limited 3G coverage. Sure they have great nation wide cell coverage but its there 3G that is limited and that is limiting iPhone usage. This past debacle with the iPhone pre-orders further widens the gap between them and there customers. AT&T has continually underestimated iPhone usage.

Some say Verizon would have similar load issues and problems if the iPhone came to them. While this may be true, Verizon's customer service if far more capable of dealing with there customers. They should have no problem keeping there customers happy. Besides the introduction of the iPhone to Verizon would shoot there stock price up. I think Verizon would be smart enough to use that extra capital to expand there network as need to support the large influx of new customers the phone would bring.

Producer Mike.

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