Analyst sees AT&T growth slowing if Verizon gets the iPhone

Analyst sees AT&T growth slowing if Verizon gets the iPhone

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Published on: 15 July, 2009 by PhoneArena Team

Analyst sees AT&T growth slowing if Verizon gets the iPhone This article contains unofficial information.

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Walter Piecyk is the head researcher for Pali Research and he expects darker days ahead for AT&T if the carrier loses its exclusivity to sell the iPhone in the U.S. to other carriers, especially Verizon. The researcher believes that if the iPhone were available on all wireless platforms, customers would head toward the most reliable and faster service which Piecyk says belongs to Verizon. He forecasts that AT&T will have net subscriber additions of less than 1 million in 2010 from a total of more than 4 million net subscriber additions in 2008. Pali Research has just issued new equity ratings on the two carriers and Piecyk explains, "A basic premise of our recently initiated buy rating on Verizon and sell rating on AT&T is our belief that as the iPhone exclusivity period rolls off between AT&T Wireless and Apple, a material number of AT&T customers will flock to Verizon’s superior network."

source: LA Times


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+2
1.
More like dissapearing...
-3
76.
Never going to happen, Apple doesn't even let carrier branding on their iPhone let alone allow Verizon to run it's own APP store!
Reply to this comment
+2
77.
And so what if they dont, Rim has there own app store and it doesnt seem to bother VZW one bit.
Reply to this comment This comment is posted in response to #76 ( Show )
+2
87.
RIM is far more flexible with items like that Apple not so much, Apple is a big stickler for making sure everything is labeled Apple.
Reply to this comment This comment is posted in response to #77 ( Show )
Reply to PapaJay224 Hide 3 replies to this comment
+2
2.
I tend to agree with this Article. If Apple makes a phone specifically for Verizon, AT&T IMHO will lose subs. Not a little but a large amount. All those who left VZW for AT&T & the iPhone will go back. I personally think it will get ugly for AT&T.
0
84.
Well thats what would happen if you put a phone people actually want on a Network People Actually Want!!! I personally think it would make Apple tons more by giving a phone to VZW since so many people want it that way anyways. There are loyal At&t customers out there that would not switch, but I dont think there is enough of those people to keep it een remotely close to the way it is now! Sorry At&t...
Reply to this comment
0
88.
You do realize that with the iPhone ATT only added 3 million new customers. The remaining balance of iPhone users were already ATT. I don't care if they put one on VZW as long as Apple keeps the GSM track alive and offer new phones as well. Now mind you what ends is the exclusivity that does not meant that Apple is abandoning ATT.
Reply to this comment This comment is posted in response to #84 ( Show )
Reply to PL007 Hide 2 replies to this comment
+3
3.
ATT really is the Most Horrible Carrier in the Entire world. It would only be a Matter of Time until people came to their Senses and leave them. Personally I would NEVER give up my Awesome Carrier for one phone, sorry. I have more sense than the 4 million sheep.
-1
19.
lol your so funny, the Most Horrible Carrier in the Entire world, that's just precious, thanks for the laugh. Now everyone keeps talking about an iPhone for Verizon, but there is something everyone forgot an exclusive contract for 5 years (or was it only for 3 years, which still puts them into 2011) with ATT established in 2007 which was extended in 2008, so I'm not sure why this keeps coming up, I know people love to talk but this is a bit much.
Reply to this comment
-2
26.
I dont know where you get your info however the exclusivity ends next year, and thru a reliable source VZW will be able to carry the iphone as early as next year.
Reply to this comment This comment is posted in response to #19 ( Show )
-1
27.
Not sure where you got your source that says it ends next year, I would re-check that source, though I could be wrong, but I thought the original contract was signed for years in 2007 and was extended in 2008 for another year.
Reply to this comment This comment is posted in response to #26 ( Show )
+1
44.
Everybody has thrown around dates on these forums and articles, but the rumor is that Verizon will have the phone next year. Typically these rumors are based in thruth a little bit and they've been around for a few years.

I don't think AT&T is the worst carrier, but nobody can honestly argue that losing their exclusive rights to the iPhone would hit them hard.

The actual date is irrelevant as it will eventually happen, even if it's a couple years down the road after LTE is fully rolled out. At some point AT&T can't offer enough to keep an exclusive contract.
Reply to this comment This comment is posted in response to #27 ( Show )
-2
54.
With what? Verizon will be using CDMA for voice and LTE for data even up to 2014 that info is provided via VzLearn LTE transition.

Any phone on VzW's network will have to be gateway devices meaning they will not be capable of simulitanious voice and data. A GSM iPhone will be worthless on Verizon's network because while it will be able to use the Data network (LTE is backwards compatible.) it will not be able to use voice. VzW's LTE is for Broadband Access via Data Cards and bragging rights. They will not use LTE for voice so anyone with GSM phones have no use of VzW's network. The other problem is how likely do you think Apple will want to make a CDMA/LTE phone?

Verizon's "superior" network is a joke. A large network is no use if the handsets they sell are trash. I am sure Apple is going to discontinue their app store for VzW to put their trash App Store on it along with its garbage Vcast rhapsody....
Reply to this comment This comment is posted in response to #26 ( Show )
-2
82.
I have worked for Verizon, T-mobile, and At&t. Through those experiences I have gained a larger understanding between the differences in the carrier networks and technologies. Being placed under a CDMA network like Verizon will hurt the Iphone due to it being a single use only network. What I mean by this is that Push Email only works when you are not in a phone call. Internet only works if you are not doing anything else on the phone. In At&t and T-mobile networks, however, GSM (which is what the entire world uses short of tiny companies in the US, Verizon, and Sprint), is a vastly superior technology that allows it's users to be in a phone call, receive texts, get push email, and do so on-the-fly all at the same time. We also have the size issue to iron out. Take for instance the V3 Razr in At&t and compare it to a V3 in Verizon: The Verizon phone is a lot thicker due to having to have the CDMA component put in. The battery life using CDMA on the Razr is a measly 3 hours talk time compared to the SAME phone and battery in at&t of 7.5 hour talk time. We can make more calls, send more data at TWICE the speeds (Verizon 1xEV 1.5Mbts, At&t 3.6Mbts) and still have more battery left that the Verizon versions. We have more tower locations, larger calling base, and our bandwidths can handle larger loads.
Reply to this comment This comment is posted in response to #19 ( Show )
-2
94.
Ahhh, but those same customers would complain of 1 hour usage time from a full Iphone battery using LTE. The transfers combined with the incredibly higher call usage drain under Verizon's CDMA network would make the Iphone all but useless. Plus, placing the CDMA component and a larger battery inside of the current Iphone housing would make it roughly the size of a brick. It would make a good paperweight at that point.
Reply to this comment This comment is posted in response to #44 ( Show )
Reply to Galen20K Hide 7 replies to this comment
+1
4.
I have customers coming in all the time hoping that the iPhone finally comes to Verizon Wireless saying that they don't want to lose their coverage they have now, especially in this region.
Reply to this comment
-1
5.
VZW FTW! Woohoo.
Reply to this comment
-2
6.
This is the second article today that can't be proven. Whats up with that? Are their more VZ ads here than ATT?
Im not saying this can't happen, but its pointless, and biased. Two articles made for ATT to look bad.
+2
8.
there have been way more articles to bash verizon though...
Reply to this comment
+1
10.
If you think about it, it doesn't need to be proven. It's more common sense than anything. Whether people like it or not, VZW is the BEST carrier in the U.S. Of course people would want a carrier that took a cool device and made it a better phone! But I still don't think we needed an analyst to tell us that...
Reply to this comment This comment is posted in response to #8 ( Show )
0
18.
I don't think that it matters what company gets the iPhone. If Sprint or/and T-mobile gets the iPhone, sales for the Att iPhone will split. Verizon may have the bigger impact, but we don't know that for sure. Let's not get too Verizon happy.
Reply to this comment This comment is posted in response to #10 ( Show )
-1
20.
The really is a matter of Opinion, live and work in NYC, VZW could not provide service where I work (according to VZW engineers we do not have towers pointing to wall street), They could not provide service in the Heights and SOHA (That's Washington Heights and South of Harlem for non NYC folks). Where I know live in Teaneck, NJ oh yeah we have great coverage just not in your section (what?) and where my mom lives (Bogota, NJ) the reception was worse then where I live in Teaneck.

I was paying for a service that I did not have, plus I could not travel back home with my VZW BB I had to get another carrier back home, which always sucked. Once we moved to ATT (with the exception of my VZW BB - It's company owned) my family and I are much happier. So again it's a matter of Opinion, oh and by the way I have tons of friends with the same experience as me.
Reply to this comment This comment is posted in response to #10 ( Show )
-2
38.
I work on Wall st (Trump Building on 40 Wall) and I get excellent Verizon service here so that is BS that "according to VZW engineers we do not have towers pointing to wall street". I also have get great coverage in the Heights.
Reply to this comment This comment is posted in response to #20 ( Show )
0
45.
This is a very good point, Verizon may have the best coverage or phones, but if they don't have coverage where you live you'll choose a different carrier.
Reply to this comment This comment is posted in response to #20 ( Show )
-1
46.
Miacol was probably exagerating and they may not have coverage at his particular building.
Reply to this comment This comment is posted in response to #38 ( Show )
-1
50.
Right up the block on Wall, New, Broad and Exchange, check it out. And where in the Heights do you get excellent coverage in the Heights (are you talking about Morning or Washington)? I can give you exact locations areas of drop...

Though I must say to an extend he or she is right in the Heights, VZW has been aggressively pushing new towers in Washington Heights, but still get 1, 2 bars at max...
Reply to this comment This comment is posted in response to #38 ( Show )
-1
62.
Were you talking about Morningside Heights area around 112, I don't know about that area, but in Washington heights they have improved alot in the past year.
Reply to this comment This comment is posted in response to #50 ( Show )
0
65.
Well I have seen towers go up and better performance in the Heights (Washington specifically), but there are still large holes in the area. I'm sure VZW will close those holes up, but the overall point is that the network is not perfect, everyone wants to bash ATT, but VZW suffers from similar situations.
Reply to this comment This comment is posted in response to #62 ( Show )
-2
83.
I agree. Ever stand in line at a Verizon store and out of the 14 people in front of you maybe one leaves with a new phone and the rest are issues? By the time you reach the front of the line there are 14 more people behind you doing the same thing. Go to an at&t store and don't wait in line----oh, that's right, we take care of people so well the 1st time they are in the store we rarely see them again and there is rarely ever a line.
Reply to this comment This comment is posted in response to #8 ( Show )
Reply to drewsky Hide 11 replies to this comment
0
7.
interesting...i'm sure the growth would slow too.
Reply to this comment
0
9.
Did we need an analyst to know this?
0
12.
Agreed...I'm now calling myself a Head Researcher. And as my first bit of information, I provide this: Should AT&T get their network up to par with Verizon's, it stands to reason they would stand little chance of losing customers should they lose iPhone exclusivity.

I'll expect my check in the mail.
Reply to this comment
0
32.
THIS COMMENT IS FANTASTIC! LOL
Reply to this comment This comment is posted in response to #12 ( Show )
0
40.
It does have to be pointed out. A lot of people think that a phone will make the service better. This simply points out that just cause you have a phone on one carrier that phone on a different carrier will be better.
Reply to this comment
0
85.
Actually yes different carriers sometimes do make a difference. I have tried phones that are the same but on 2 or even 3 different carriers and yes sometimes the carrier did make the difference. Mainly network speeds are the big thing. Especally with PDA's, with regular non 3G phones it was not that noticible, of course signal strength being the issue for those people. Sprint, VZW & T-Mobile are going to have 3 different signal strengths on the same phones (same for that carrier). My storm would not run the same speeds if I unlocked it to use on At&t or Even if I could take it to sprint. I would actually prefer to have a storm on Sprint than At&t. But since I can't (or wont) I will use it on my Rev.A 3G VZW Network.
Reply to this comment This comment is posted in response to #40 ( Show )
Reply to The Doc Hide 4 replies to this comment
+4
11.
I don't see a problem with Verizon getting the Iphone. I think AT&T had there chance and the time to improve their system coverage and instead spent the time trying to get the best phone. I think it's time for someone else to give it a shot with the Iphone so we all can enjoy a great phone and the service area to go with it. But in the end I have to agree with Galen20K I wouldn't leave a carrier who has a great service area for one who has the best phone and has no service area or at least not much of one. What are people thinking?
Reply to this comment
0
13.
I also would like to see Verizon take care of those that remained loyal to them through the Iphone mania and offer a small discount if possible on the new Iphone or maybe on the data plan for 6 months something to show appreciation for those who remained loyal to them, maybe it is wishful thinking LOL.
0
14.
sorry never gonna happen...
Reply to this comment
0
47.
That's a great idea... I don't see it happening though.
Reply to this comment
0
73.
But what about those that are still on Verizon that have no intention of ever buying an iPhone? why should you get compensated for a data plan... VZW would have to pay me to use an iPhone.... A LOT... so a discount would be stupid, unfair, and make users like me angry. It won't happen.
Reply to this comment This comment is posted in response to #47 ( Show )
Reply to cdw2856 Hide 3 replies to this comment
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