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3G iPhone could go to another carrier

Posted April 11, 2008 2:16 PM by Cedric Bosch
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You can bet that AT&T’s rivals are kicking themselves for not getting on the iPhone train early on. Now, the 3G iPhone could offer them a second chance to join the latest trend. Statistically, iPhone users rack up a higher monthly bill than any other device, retain their contracts for longer periods of time, and are tech-savvy enough to solve their own problems without having to go into an AT&T store. Consider the following facts, pulled from Rubicon Consulting’s report, entitled “The Apple iPhone: Successes and Challenges for the Mobile Industry”:

-The iPhone increases mobile browsing. More than 75% of iPhone users say it has led them to do more mobile browsing.
-The iPhone increases phone bills. The iPhone has increased mobile phone bills by an average of 24%, or $228 extra per year.

It’s important to remember that Apple isn’t strictly wedded to their AT&T contract. If another carrier comes along with a higher bid, Apple will definitely consider switching over. And considering the profits that those carriers could see from having the iPhone on their network, a bidding war could likely erupt.

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Comments

  1. “It’s important to remember that Apple isn’t strictly wedded to their AT&T contract. If another carrier comes along with a higher bid, Apple will definitely consider switching over.”

    If that’s the case then AT&T need to get some better lawyers/negotiators next time they enter into a contract.  I can’t see them agreeing to signing up to a contract that Apple can just walk away from when it fancies.

    Do you have anything to base that claim on?

    Posted by Ranu on April 11, 2008 4:04 PM

  2. Well, no, the second generation iPhone(g2) will not go to any other carrier for now. Apple has already signed a contract with US carrier AT&T. I just wanted to let you know a couple of other things; just so people wont be dissapointed with the g2. Many of the features that have been mentioned are obviously in the device. GPS will not be offered at part of the device but we and ***** have been working on an external piece which will serve as the GPS basis. Simply we couldnt add this piece inside and still keep the design as sleek as an ipod touch(g1). On the other hand, apple learned from passed mistakes and gave a fair price the new devices. By the way, theres no more 8gb. We though people would like more space for their music and movies so we decided to go for 16gb(599) and 32gb(699). Its actually worth it this time. And there is no 64gb touch for now but there is a bigger memory   nano. I cant give any more details or confirm anything else. Lets just wait and see your reactions to what has been done!

    Posted by ***** on April 11, 2008 4:04 PM

  3. From what I understand ATT has a two year deal with the devil:)

    Posted by kevin on April 11, 2008 4:27 PM

  4. I’m sorry, but it’s ridiculous to think that Apple would go with another carrier for the 3G while there are millions of iPhone users out there now locked into a 2 year contract with AT&T.  Apple endured some serious backlash with the price drop, but this would run a lot of dedicated Apple fans, such as myself, off for good.

    Posted by pez on April 11, 2008 4:58 PM

  5. if you want a free iPhone follow this link http://www.YourFreeiPhone.com/index.php?ref=3983877

    Posted by Free iPhone on April 11, 2008 6:04 PM

  6. The only other carrier that uses the same technology as AT&T is TMobile, so Apple’s carrier selection is somewhat limited at the moment. They can’t easily switch to Verizon or Sprint. Plus, I think their deal with AT&T is pretty exclusive. Just like the contract I signed with AT&T. Oh, I suspect that Apple will have to pay more than $175 to terminate early - especially if the contract has a sales figure base for terminating - if you are selling lots of units, why shift carriers? Apple has a good deal with AT&T. I don’t see them shifting in the near-term.

    Posted by Paul on April 11, 2008 7:23 PM

  7. As long as at&t also offer the 3G iPhone then I’m happy.
    I just don’t want to be screwed over like when the Razr was released then the better version was only available through OTHER carriers. Pissed me off to NO end.

    I highly doubt Verison will get the iPhone though.
    They insist on branding every phone with their stupid menus & logo plastered everywhere.

    Posted by Grangoire on April 11, 2008 8:22 PM

  8. This topic is complete nonsense.

    Apple signed a 5-year exclusivity agreement with AT&T. FIVE YEARS!

    The next-gen device goes to AT&T unless it’s released after June 29


    June 29, 2012, that is…

    Posted by sick of fanboyz on April 11, 2008 8:32 PM

  9. I specifically made an effort to fill out this information to say one thing…

    You are a dumb person.

    Are you actually hired by anyone?  If so, I sincerely hope you have an at-will employment.  I do not mean that you should quit. I simply mean that whoever employs you should kick your ass to the street. And ASAP.  Have a good day and PLEASE… do some research.

    Posted by Jonathan on April 11, 2008 10:27 PM

  10. You know what I think?  Maybe you don’t care.  But I think that you wrote this article to get traffic to your site to get more ad rev!!

    If so, GREAT idea.  If not… wow.  (why would apple go to anyone else??)  PLEASE tell me, I don’t even have ATT, I have Verizon, but when the 3G iphone is released, I am there. Period.

    Posted by Chris on April 11, 2008 10:33 PM

  11. Apple is undoubtedly bound to AT&T in the US, but probably not in countries where AT&T has no presence.

    The real question is whether Apple has the right to sell unlocked phones, and is only exclusive to AT&T for carrier sales and assignment.

    Apple can sell iPhones unlocked with 40% profit margins, and has already done so, for premium prices producing even higher margins.  Unlockers around the world have shown that an unlocked phone can be used with any local carrier who has the correct wireless format…and 3G GSM is the most universal format in the world. 

    For me, it would probably be worth choosing a relative ly equal carrier subscription in order to obtain carrier-provided features, specifically Visual Voicemail.  That is, unless Visual Voicemail can be provided through an added application through the SDK.

    Posted by hardmanb on April 11, 2008 10:35 PM

  12. The following quote was from an article dated May 22, 2007.

    Dude, do some f**cking research before you post “news” like this.

    “Some interesting news came out of USA Today yesterday (oh, the irony); in a standard iPhone story, the publication quietly broke the news that the iPhone will be a five year exclusive for AT&T Wireless. “AT&T has exclusive U.S. distribution rights for five years—an eternity in the go-go cell phone world.” You can say that again. What’s more, “Apple is barred for that time from developing a version of the iPhone for CDMA wireless networks.”“

    As for the unlocked international versions - the people in the countries where those are available ain’t buying - they’re still purchasing and hacking the cheaper US versions.

    For full disclosure, I manage a store for AT&T in a major metropolitan location. Every day I turn away a dozen foreign customers - mostly french and chinese.

    I remind french customers that the device is available unlocked in Europe. The cost is, how you say… prohibitive.

    Posted by sick of fanboyz on April 11, 2008 10:47 PM

  13. “It’s important to remember that Apple isn’t strictly wedded to their AT&T contract.”

    AT&T’s lawyers beg to differ.  However, IF you somehow obtained a copy of the contract between Apple and AT&T, and IF you somehow found a loophole that would allow Apple to just walk away from a five year deal after one year, you’re wasting your time on this blog, as you should be some company’s in-house counsel or teaching at Harvard.

    Posted by CCC on April 12, 2008 10:53 AM

  14. if you want a free iPhone follow this link
    http://www.YourFreeiPhone.com/index.php?ref=3983877

    Posted by Free iPhone on April 12, 2008 12:12 PM

  15. Huh? If Apple wants the phone to be usable outside the U.S., it needs to use GSM/HSDPA. The only alternative to AT&T inside the U.S. then is T-Mobile, which has much smaller coverage. That makes no sense. Going to Verizon or Sprint means a U.S. only version.

    A question is whether the phone supports the European/Asian HSDPA frequencies as well, or whether we’ll have a kludgy U.S>-only 3G version.

    This post doesn’t make a lot of sense.

    Posted by JimF on April 12, 2008 2:34 PM

  16. Hey guys, thanks for the feedback.

    Yes, AT&T did sign a five-year contract with Apple. But given Apple’s long and notorious history of breaking off relations with other companies, anything could happen. If money is on the table, I can assure you Apple’s won’t think twice to reconsider.

    Posted by Cedric Bosch on April 12, 2008 2:52 PM

  17. Apple can “think” about leaving all it wants to.  That isn’t the point.

    Even Apple can’t just break a contract with impunity.  And if they tried, the lawsuit AT&T filed would be massive.  MASSIVE.  We’re talking every penny AT&T spent in getting its network to meet Apple’s specifications, as well as marketing costs, and any other iPhone-related costs, plus possible punitive damages.

    Additionally, Apple would ruin the considerable goodwill it has with consumers, and no other company would trust them going forward.

    There’s only four years left on the AT&T agreement.  You really think Apple can’t wait that long?

    Posted by CCC on April 12, 2008 5:07 PM

  18. Point taken- if other carriers are trying to get Apple’s product on their network, AT&T will probably be trying even harder to keep that product on theirs.

    Posted by Cedric Bosch on April 12, 2008 5:55 PM

  19. I hated the fact that the iPhone went to AT&T.  It makes every speaker I’m around go nuts.  TV speakers, iPod speakers, my daughter’s portable DVD player, my car stereo, etc, etc. etc…. 

    Verizon phones never interfered with my audio equipment.  This, IMHO, was a major mis-step to walk away from Verizon when they were negotiating.  I hope they work it out in the future.

    Posted by Shannon on April 12, 2008 7:08 PM

  20. Forgot to add….the baby monitor too!  I hate AT&T for this but went back for Apple.  So torn.

    Posted by Shannon on April 12, 2008 7:09 PM

  21. Get free iPhone: http://www.iphones4free.com/default.aspx?r=1008099

    Posted by Brian Chang on April 12, 2008 8:04 PM

  22. “I hated the fact that the iPhone went to AT&T.  It makes every speaker I’m around go nuts.  TV speakers, iPod speakers, my daughter’s portable DVD player, my car stereo, etc, etc. etc….”

    ummm, shannon, thats actually not att’s fault, its apple’s fault. its not the cell frequency thats causing these disruptions, its the phone itself. for example, if you get a regular att phone thats not an iphone, you can probably see that the disruptions will stop because you’re using a different phone even though they both use att.

    Posted by Shawn on April 13, 2008 2:24 AM

  23. Not true Shawn.  We had Cingular/AT&T before and the phones we had then also drove everything crazy.  Besides the network coverage was abysmal so we switched.  It’s the technology that AT&T uses.  It is not Apple’s fault.  I’m just saying that if the iPhone ever goes back to Verizon I’ll be paying my early termination fee.  To each his own but the interference issue is not new to the iPhone in regards to AT&T.  I knew it would interfere but since we’re talking about carrier preference, Verizon is it for me.

    Posted by Shannon on April 13, 2008 6:26 AM

  24. I agree with Shawn, I had Verizon before I switched to the iPhone with AT&T… and I notice now that when I’m around speakers they go crazy!! This isn’t the only phone either, my friends AT&T RAZER does the same thing! The Moto Q I had with Verizon never did this!

    Posted by Scott on April 13, 2008 2:25 PM

  25. I think some of you are forgetting a few important details:
    First of all, iPhone is already available in certain European countries where it is also locked down to one carrier; either Vodafone, T-Mobile, or Orange, depending on the country.
    Secondly, with the release of the 3G iPhone just around the corner, there is even more of a reason for Apple to stay with ATT because the only other major US GSM carrier, T-Mobile, uses very little to no 3G technology as of yet.
    In my opinion, Apple might even stay with ATT longer than their current 5 year deal because they currently have a great relationship and ATT have made the greatest technological advances out of any other US carrier.

    Posted by Apple+Me on April 13, 2008 2:57 PM

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