AT&T’s own CEO confirms they will lose exclusivity of the iPhone

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AT&T’s own CEO confirms they will lose exclusivity of the iPhone

Posted by Chris Leckness on Oct 23, 2009

This post was published 4 months 22 days ago which may make its actuality or expire date not be valid anymore. This site is not responsible for any misunderstanding.

I really don’t think it’s fair that a company be allowed to swing these exclusive deals with the OEM, but it’s happening and I doubt it’s going to stop any time soon. That said, one of the most prolific instance is AT&T/Cingular with the iPhone here in the US. It’s been rumored that it was coming to and end for the last year, but now iPhone Blog has a quote from the horse’s mouth, Ralph de la Vega, AT&T’s CEO….

“We have a legacy of having a great portfolio…that will continue after the iPhone is no longer exclusive to us. We think we will continue after the iPhone…to drive [results]….” [...] “we feel really good about our non-iPhone [subscriber] adds and net adds…. We feel really strong about our portfolio in quick messaging devices, including BlackBerry and all the smartphones.” [...] “Even if we lose exclusivity [of the iPhone], we will be the only carrier with HSPA 7.2 [a network specification being deployed at AT&T] and [new devices] will work on our network faster. I feel as strongly as ever [about] the capability of devices in our lineup and [am] super-excited about the deals with e-readers and personal navigation devices.”

Surprised? You shouldn’t be, it’s been a long time coming. My only wish is that, just for 1-2 weeks, all AT&T iPhone users could swap to Verizon or Sprint to see how their networks hold up.

Tagged with At&t

Chris Leckness (4418 Posts) - Website | Twitter | Facebook

Chris Leckness is the Owner/Administrator of Mobilitysite. He is a Microsoft MVP, Mobile Devices and a member of the exclusive focus group, Mobius. Chris has been a big time supporter/user of Windows Mobile since the Dell Axim days when it was Pocket PC 2002. Chris loves Zune, but also owns 3 iPhones too. His personal blog is chris.leckness.com.

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Zippy

Dude, I think you meant to write "allowed" not "aloud." The curse of spellcheck

Chris Leckness

Yes, I did. :) Thanks. Fixed.

Kimberly12345

He said *IF* they lose exclusivity and *WHEN* they lose exclusivity.

Did you think the 5 year agreement would last forever?

This is news at all.

lathan

This should be a big concern for ATT shareholders. Recent service issues may cause many customers to leave. Apple with its App Store has created a high barrier to customers switching to another smart phone. I would not switch to another smart phone unless apps like NeuroMobile were available on the new phone. ATT has done nothing to tie its customers to ATT.

Ike Pigott

This is precisely why Chris said "Move all those iPhone users to Verizon or Sprint and see if they hold up."

Once everyone else deals with the spike in traffic, suddenly AT&T won't look as bad.

Pony99CA

This should be familiar to any lawyers (or anybody who watches law TV shows). "Objection! Assumes facts not in evidence." You're taking a hypothetical situation and then presuming something.

If and when Apple loses its exclusivity in the U.S., it's doubtful that every AT&T user will switch to the new carrier, so that spike will be smaller (especially if more than one other carrier gets the iPhone).

Maybe if the iPhone had come out on another carrier in 2007, that carrier would be in trouble, but we'll never know (well, not until we can jump to that parallel universse a la "Fringe").

Steve

doogald

Yes, but it is very possible that people reluctant to leave a carrier despite an urge to own an iPhone will suddenly be able to get one - and send a surge of traffic to that carrier's network. Seriously, I'd stay with VZW when my contract is up in Dec (it would certainly be easier than switching, even if I'm not 100% pleased with VZW) if they added the iPhone, but I'm not staying if they do not. I think that there are a lot of people like me at VZW, T-Mob and Sprint - people stuck with contracts, or in an area where AT&T is weak so they cannot move, but would jump at a chance at an iPhone otherwise.

Pony99CA

True, but I think a lot of people who really wanted the iPhone did switch to AT&T, contracts be damned, so those remaining on that carrier who want it won't cause as large a spike.

As for contracts, there are two issues with that argument.

First, your argument cuts both ways -- people who switched to AT&T may now be under a contract and not want to switch right away. This would have the effect of spreading the volume out, causing less of a spike.

Second, the iPhone was introduced over two years ago, so anybody who really wanted one is no longer under contract. Only hold-outs for the 3G or 3Gs may still be under contract (and probably 2/3 of those who waited for the 3G, introduced about 16 months ago, are no longer under contract and switched as well).

The big spike is over, although a smaller spike followed by a swell of switches may well come if another U.S. carrier gets the iPhone.

However, they'll also have the benefit of seeing what happened on AT&T and have time to build their network up more if they think they'll get the iPhone.

Steve

Bradley

You'd switch right back to at&t because you wouldnt tolerate not being able to use your device data while talking on the phone.

Don

I've been a Verizon customer forever so I've never been able to do simultaneous data and voice, but I'm curious as to why you'd need to access data while talking... When I use my phone, it's usually to my ear, or I'm driving and it's on speaker. I've never had need to access the web, or anything while I'm talking.

What do you use it for? (I'd like to know what I've been missing)

Pony99CA

That's a great point. I have to wonder why that happens. Does Verizon artificially limit it, does a specific technology need to be deployed that isn't, or is it a restriction of CDMA.

I seem to recall it's the second -- there was something that would allow sharing voice and data at the same time, but it had to be enabled/installed. Or maybe it's the third -- I just read about SVDO for Simultaneous Voice 1x and EVDO Data that was announced recently.

Steve

Bradley

It's a technology issue. The phone also needs to support SVDO and I doubt that will happen anytime soon. Verizon already has a 2010 commitment to LTE.

TheComputerMan

Exclusive end 6/30/10 so.... The Iphone VZ will Debut 7/1/10

AT&T’s own CEO confirms they will lose exclusivity of the iPhone

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