Analyst Suggests AT&T May Have Gained iPhone Exclusivity Through 2010 With iPad Data Deal

[MacRumors]

Computerworld reports on comments from Broadpoint AmTech research analyst Brian Marshall suggesting that AT&T may have gained an extra six months of iPhone exclusivity in the United States with its bid to provide data service for the iPad, extending its window through the end of 2010.

"AT&T had to do something dramatic to get the iPad," said Brian Marshall, a Wall Street analyst at BroadPoint AmTech. AT&T's move was to discount their normal wireless data plans by 50% to iPad customers.

As part of the tit-for-tat, AT&T got what it wanted. "For that pricing [on the iPad], AT&T was able to negotiate a six-month extension on the iPhone exclusive," Marshall said.

Marshall provides little evidence for his claim beyond the observation that Verizon failed to win the rights for iPad service. Numerous sources had indicated to Marshall that Verizon was a "certainty" for the iPad, suggesting that some major happened to push Apple's focus to AT&T.

AT&T's exclusivity window for the iPhone in the United States has been the subject of some debate, with early claims pegging it at five years being disputed by other reports that AT&T initially had a two-year agreement that extended through mid-2009 but gained an extra year when it increased the handset subsidies paid to Apple. A report from early last year suggested that AT&T was searching for a way to extend its exclusivity for yet another year until mid-2011, and its iPad data pricing offer may have been a means to get halfway to that goal.

Article Link: Analyst Suggests AT&T May Have Gained iPhone Exclusivity Through 2010 With iPad Data Deal

 

[mobi]

...Still waiting for Verizon, so I can use my iPhone as a real "phone."

 

[Jarbo]

That would be a shame.

 

[alm99]

Seems plausible coming from an analyst who guesses like those of this forum.

 

[*LTD*]

Apple-AT&T merger in 2012.

 

[Saberon]

This is why I'm glad I live in Canada...except for outrageous monthly prices on cell phones

 

[notjustjay]

50% off? Wait, so otherwise the data rate would have been $30/month for 250 megs or $60/month for unlimited??

 

[crackbookpro]

FALSE REPORT

The logic on this guy Marshall is of a two year old...

 

[jaw04005]

I’m getting really tired of reading about what a great deal AT&T is offering with their iPad plan.

The reason the plan is $29.99 instead of $59.99 is because Apple artificially limits streaming video quality (YouTube, Netflix and ABC’s Player are noticeably throttled) and App Store and iTunes downloads to 20MB.

You put enough bandwidth restrictions on a device, you can offer a cheaper data plan.

 

[AreYouIn?]

I sure as hell hope not! We need people to leave AT&T so that the network won't be so crappy. I want tethering too!

 

[Bearxor]

50% off? Wait, so otherwise the data rate would have been $30/month for 250 megs or $60/month for unlimited??

Yes, normally AT&T charges $60/mo for unlimited data access on a device. They still charge that on any other device you buy that you want data access on. AND you have to sign a contract.

iPad data pricing being used to wiggle more exclusivity out of Apple doesn't surprise me. It's the first thing I thought during the presentation when they announced a $30 no-contract unlimited data option.

 

[bobsentell]

Or, and this is a WAG, maybe Apple has absolutely no desire to make two versions of the iPhone and ATT will have default exclusivity until 4G arrives (when ATT and V will have compatible networks).

Apple and Verizon are still slamming each other in commercials. Why do that if you are about to become partners?

 

[mrtune]

50% off? Wait, so otherwise the data rate would have been $30/month for 250 megs or $60/month for unlimited??

The USB 3G cards and also laptops with built in 3G capability all carry a $60/month data charge. Been this way for while for AT&T. The iPad without a doubt is considered a steal at $30/month compaired to their other product offerings.

 

[Bearxor]

I’m getting really tired of reading about what a great deal AT&T is offering with their iPad plan.

The reason the plan is $29.99 instead of $59.99 is because Apple artificially limits streaming video quality (YouTube, Netflix and ABC’s Player are noticeably throttled) and App Store and iTunes downloads to 20MB.

You put enough bandwidth restrictions on a device, you can offer a cheaper data plan.

I'm pretty sure all of these video streaming devices adjust their video stream for the amount of bandwidth available. Everything I've ever used has. Orb always downgraded the stream over my Sprint connection to make it playable and Sling did the same thing. I really don't see how these players downgrading the signal to fit over a 1Mb connection is a bad and/or unusual thing. Remember that the vast majority of home internet connections are going to be in the 5Mb range. I've never gotten a faster speed on AT&T than 1.3Mb.

 

[talkingfuture]

If true I would assume there will be a lot of disappointed Americans. It does seem silly that you can't have it on any network yet.

 

[PinkyMacGodess]

It pains me to say this but I am really contemplating ditching my iPhone because I have essentially ZERO signal in my home. AT&T's signal has gotten markedly worse in the past few months and when I've called and emailed to complain about it, I get smoke blown up my butt...

I run my business through my cell phone and not getting calls is a really bad thing. Verizon works a lot better.

Oh, and when I ask about their 'microcell' technology I get blank stares and more smoke. I'm getting tired of the BS. VERY tired... And mad enough to buy my way out of my AT&T contract to dump them cold!!! The wonderful technology of the iPhone isn't worth bull spit if the signal sucks. Hi Steve! Get a clue! Tying the iPhone to AT&T is tying it to a cruise ship boat anchor!

 

[Bearxor]

Or, and this is a WAG, maybe Apple has absolutely no desire to make two versions of the iPhone and ATT will have default exclusivity until 4G arrives (when ATT and V will have compatible networks).

Apple and Verizon are still slamming each other in commercials. Why do that if you are about to become partners?

I think this is very likely. I don't expect to see a Verizon iPhone until 2011 when Verizon should have MOST of it's LTE network up. But even then I think they still planned to push voice connections over 1XRTT but maybe, at that point, they'll be able to push iPhone voice connections over LTE.

 

[cmaier]

Yawn. There is not going to be a CDMA iPhone. The lost iPhone didn't have qualcomm's universal chipset. Apple has no interest in supporting two models especially when one is of little use outside the U.S. and a couple other nations.

No Verizon until LTE.

 

[Lara F]

If true, way to lock a bunch of Verizon subscribers to Android Apple. Real smart...

 

[ltcol266845]

Hey there, "I want the iPXXXX on Verizon" does not equal "The iPXXXX will be on Verizon!"

Verizon's plans are just as overpriced as AT&T. Maybe you gain a better network in most areas, but you're still getting bent over for your service.

That Sprint EVO 4G is looking better and better, especially with Sprint's more common-sense we-really-need-subscribers plan pricing. Not to mention they have been talking this year about moving straight to a single data plan for a phone instead of this BS minutes+SMS+data plans system now. Seriously, SMS IS DATA!!!!! AND BARELY ANY AT THAT. Ugh... Sorry, maybe I just am too pissed about our wireless companies to give a damn about the iPhone coming to Verizon.

 

[stubeeef]

I have patiently waited for years for Verizon, Apple-if you want my money you have to go beyond AT&T. I will NEVER be an AT&T customer EVER again.
Why apple is blinded to this is beyond me.
Guess it is time to check out the Android. Which of course leaves the iPhone out for 2 years, for all the smart stuff Apple does this is just plain wacked out stupid.

 

[dashiel]

correct me if i'm wrong, but i could have sworn that at the iphone unveiling back in 2007 steve jobs said "we have an exclusive with at&t for 5 years" all this speculation seems moot with this in mind.

// edit

yeah, 5 year exclusive with at&t.

http://www.engadget.com/2007/05/22/apple-iphone-on-atandt-for-five-years/
http://www.usatoday.com/tech/wireless/2007-05-21-at&t-iphone_N.htm

 

[bigjnyc]

...Still waiting for Verizon, so I can use my iPhone as a real "phone."

I currently use mine as a "phone" and "data device" at the same time

 

[DJ Dilbert]

FALSE REPORT

The logic on this guy Marshall is of a two year old...

I really hope so. I'm eligible to get a new phone in October with Verizon and an iPhone would really help with things that I do. I know there are other smart phones similar to it. But unless the Droid has an iTunes application, then I'm not interested. It would be nice to combine the functionality of my iTouch G1 with my phone.

Let's hope this IS a false report.

 

[DJ Dilbert]

I sure as hell hope not! We need people to leave AT&T so that the network won't be so crappy. I want tethering too!

It'll probably be a cold day in hell when Verizon offers a reasonable price for tethering. But isn't it free or just really cheap in Europe for tethering?