AT&T used iPad to extend iPhone exclusivity deal?

Isn't it interesting how AT&T was so willing to give iPad users such a good deal on 3G wireless access? ComputerWorld reports that according to BroadPoint research analyst, Brian Marhall, the deal may have cost Verizon a bit more waiting time before seeing a CDMA iPhone.

In Marshall's opinion, Apple had to give AT&T a six month extension on their iPhone exclusivity before AT&T would be willing to support such great iPad 3G plans. Keep in mind, these plans are pre-paid and can cost either $15 or $30 a month. Everything about these plans seems non-AT&T.

"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."

Assuming the above is true, the contract extension will just prolong the inevitable. Because of it, Verizon won't be getting the iPhone until, at least, Q1 2011. Keep in mind, analysts still believe that they will, in fact, be getting it. The question now is, when? Neither Apple, nor AT&T have confirmed Marshall's speculation.

Report a problem with article
Previous Story

Google Goggles gets language translation

Next Story

Google explains speed test video, not all shots were live web pages

29 Comments

Commenting is disabled on this article.

You know what.. The iPhone is becoming to damn popular. Kinda sick of seeing everyone use the same phone everywhere. - I still use one to.

its nice to have something thats rare. Makes you feel special.

I dropping off the iPhone bandwagon come june!.. hehe

dimithrak said,
You know what.. The iPhone is becoming to damn popular. Kinda sick of seeing everyone use the same phone everywhere. - I still use one to.

its nice to have something thats rare. Makes you feel special.

I dropping off the iPhone bandwagon come june!.. hehe

They would have to raise the price again for that to happen . I don't care though. It does everything I need it to do. It's the only device I carry around all the time.

NeoTrunks said,
It does everything I need it to do. It's the only device I carry around all the time.
And isn't that the point? For me it gets the job done, whatever job that is. If it's a Nokia you like then so be it. Samsung? Right on. Windows 7 Mobile? Good for you!

The longer Verizon doesn't have the iPhone, the more there going to be advertising Driod and as an indirect result, the Android and it's market place.

etempest said,
The longer Verizon doesn't have the iPhone, the more there going to be advertising Driod and as an indirect result, the Android and it's market place.

You'd think, but despite Android's explosive growth in market share, I've yet to see any 'market deals' listings on dealnews.com for the platform. A billion and two postings a day for iPhone apps, though. It's not like devs never run special prices on their Android software. It'd be nice if a site existed (or does one?) that could organize that info.

I find this acceptable. I wasn't going to change providers (ie. Verizon) until their LTE network was up and running. This 6 month extension will hopefully give them enough time to do so. I wouldn't want the iPhone if it were to use Verizon's network as it stands right now - no data and phone service use at the same time.

A big 'duh' to this one. This was obvious when the plans for the iPad were released and they were half of what an unlimited tethering plan is on AT&T.

The iPhone never should have been an AT&T exclusive to begin with. Apple has done a lot of retarded things recently, but I think that was the biggest. It would have been the first device I would have been willing to pay Apple Tax for. Now if I ever get a cell phone it'll more likely be an Android or Windows Mobile 7 phone.

In all fairness, had they simply marketed an unlocked iPhone for anyone, Americans would still be stuck choosing between at&t and T-Mobile. Considering T-Mobile's user base, it wouldn't be a significant enough hit to reduce the load on at&t's network, and it would've hurt sales significantly. Believe it or not, very few people can figure out SIM-swapping, and prefer to do everything at their local wireless provider's storefront.


Not to mention, Apple would've just done something retarded like needlessly miniaturizing SIM cards for the iPhone to maximize consumer confusion.

Joshie said,
In all fairness, had they simply marketed an unlocked iPhone for anyone, Americans would still be stuck choosing between at&t and T-Mobile. Considering T-Mobile's user base, it wouldn't be a significant enough hit to reduce the load on at&t's network, and it would've hurt sales significantly. Believe it or not, very few people can figure out SIM-swapping, and prefer to do everything at their local wireless provider's storefront.

Not to mention, Apple would've just done something retarded like needlessly miniaturizing SIM cards for the iPhone to maximize consumer confusion.

Uhm, they already did micro-SIMs in the iPad and the prototype iPhone.

Neither are carriers where I am. Verizon is pretty much my only option. I briefly considered getting an iPhone anyway, until I read the AT&T contract, that stipulates (I'm paraphrasing from memory here, so I'm sure it's not 100% accurate, but it conveys the gist) that if I didn't use in-area coverage enough or used out-of-area coverage too much they would terminate the contract at their discretion; I'd ALWAYS be using out-of-area coverage. Also, their rates are ****ing horrible and there's no way in hell I'd pay more a month for a cell plan than I do for my Vonage phone.

If Apple was smart, they'd release the iPhone on all US carriers.... there is bigger market area outside of AT&T

day2die said,
No problem. Windows Phone 7 would be rocking on Verizon long before that.

The best part is how high quality they are maintaining it. Keeping all that carrier and brand bloatware bull**** off. Well. At least to a minimum.

You can't blame AT&T for working up a deal with Apple; this is good business and keeps them in control (in the US) of the iPhone, and now the iPad. . .just good business for them and there stock holders.

I really doubt that was the reason. Why would AT&T sell 3G access for $60 (laptop plans) when you can get a MiFi for the same price on Verizon and use it with more than 1 device. Selling it with the $30 plan is the only way it could have worked, not cuz they got an extension of whatever "exclusive" people wanna say they have.

Hope not. I hate this exclusivity agreement and we need more companies in the U.S. getting the iPhone. More competition = cheaper plans = better for consumers.

No. I don't want to see Verizon getting the iPhone. Almost everybody at my school has Verizon and if Verizon gets the iPhone...then almost half the school will have the iPhone.


The iPhone does make men look more attractive. Even people in my school said it. The ladies go after guys who look generally hot and have an iPhone as they simply know "It's the iPhone of course! ". I think Apple wants the iPhone to be higher quality than "that popular phone for the last 2 years and is now out of style and will never ever come back in style..."


Whenever I watch MTV, you can see how most have iPhones. That's what the ladies watch, those reality shows. And if the iPhone is so easy to get, then everybody will get one and they will go out of style completely once and for all in a short amount of time, just because everybody tried it and got tired of it.

Edited by Electric Jolt, May 7 2010, 1:07am :

Tech Star said,
Hope not. I hate this exclusivity agreement and we need more companies in the U.S. getting the iPhone. More competition = cheaper plans = better for consumers.

I dunno man, aren't people getting bored with it yet? It's becoming the new Razr. Popular with the kiddies, but after a couple years of upgrades, the things that DON'T change really begin to stand out and make you wonder what the competition is offering.

Joshie said,

I dunno man, aren't people getting bored with it yet? It's becoming the new Razr. Popular with the kiddies, but after a couple years of upgrades, the things that DON'T change really begin to stand out and make you wonder what the competition is offering.

We will see with the 4G. I am currently waiting to upgrade from my Sprint HTC Mogul w/WinMo 6.1 to either a WinPhone 7 device or the next iPhone.

Tech Star said,
Hope not. I hate this exclusivity agreement and we need more companies in the U.S. getting the iPhone. More competition = cheaper plans = better for consumers.

I'm a AT&T user, would love to see other companies get it, would make it easier on me lol

Tech Star said,
Hope not. I hate this exclusivity agreement and we need more companies in the U.S. getting the iPhone. More competition = cheaper plans = better for consumers.

But why iPhone? Why not wait till the 'Google Phone' with Flash comes out which is a vastly superior phone

As for other companies getting it; most other countries already have the ability to move from carrier to carrier - either because of legislation or companies offered it and the rest of the market followed.

rawr_boy81 said,

But why iPhone? Why not wait till the 'Google Phone' with Flash comes out which is a vastly superior phone

As for other companies getting it; most other countries already have the ability to move from carrier to carrier - either because of legislation or companies offered it and the rest of the market followed.

I agree. I was waiting for the iPhone to come to Verizon to get one simply because I already have a Blackberry Storm on Verizon and I love their service. I want to stick with Verizon. I have too many friends and co-workers who complain about their iPhone / AT&T dropped calls and echo'ing. I was willing to wait until Q3 but now another 6 mos. seems like it might be time to go Android instead.