Apple to extend iPhone exclusivity with AT&T?

While the hip bet was to put your money on a Verizon branded iPhone in 2010, some of the smart money is beginning to think that AT&T might be able to get Apple to sign an exclusivity extension. iSuppli corporation is part of the latter group and in a report they state that the growth of High Speed Packet Access being put to use by the carrier is enough to keep the iPhone away from the other wireless operators. The report estimates that by 2012, there will be 1.4 billion subscribers using HSPA technology. That compares favorably with the 304.6 million people predicted in 2013 to be using the Ev-Do technology that Verizon uses. Francis Sideco, principal analyst, wireless communications at iSuppli says, "Speculation is rife that Apple will end its exclusive U.S. iPhoneservice deal with AT&T when the current contract expires in June2010 and begin to offer phones that work with the Verizon network. However, iSuppli doesn’t believe this will be the case."

The unanswered question is whether or not AT&T actually benefits from the deal with Apple. Most iPhone users say that their number one problem with the device is the carrier. Jagdish Rebello, iSuppli's director and principal analyst, says that the AT&T network is getting overloaded by data traffic from iPhone users using the internet and apps. But the real problem according to Rebello is that the nation's second largest carrier has not been able to turn all of this traffic into revenue. Instead, the carrier is going to throw $17 billion dollars at its network next year in order to improve the service.

The report says that while AT&T could indeed extend its exclusivity with Apple for the current iPhone model, Verizon could step in to offer a tablet device, or even a new version of the iPhone.

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source: AppleInsider