AT&T has taken a beating for it's horrible service. But the allure of the iPhone makes people put up with it. When Verizon Wireless came out with the Droid, it just added to AT&T's bad reputation. The "There's a map for that" ad campaign made it even worse. I remember many of my friends would mention if Verizon would only offer the iPhone they would gladly pay the AT&T termination fee with a smile.
Well, wait no longer, according to Bloomberg, the iPhone is finally coming to Verizon in January!
From Bloomberg:
Verizon Wireless, the largest U.S. mobile-phone company, will start selling Apple Inc.’s iPhone next year, ending AT&T Inc.’s exclusive hold on the smartphone in the U.S., two people familiar with the plans said.
The device will be available to customers in January, according to the people, who declined to be named because the information isn’t public. Natalie Kerris, an Apple spokeswoman, and Jeffrey Nelson, a Verizon Wireless spokesman, declined to comment.
The iPhone, which has been the sole domain of rival AT&T in the U.S. since June 2007, will give Verizon a boost in its competition for smartphone customers, UBS AG analyst John Hodulik said in an interview. Verizon customers, who numbered 92.8 million at the end of the first quarter, may buy 3 million iPhones a quarter, he estimates.
“Apple is going to dramatically increase the number of devices it sells in the U.S. when exclusivity at AT&T ends,” said Hodulik, who is based in New York and rates Verizon shares “neutral.” “It’s hard to ignore the quality issues that AT&T has faced.”
Verizon Wireless, which is building a high-speed fourth- generation network, plans to unveil several devices that will run on the new technology in January at the Consumer Electronics Show, Chief Executive Officer Lowell McAdam has said.
IPhone Gains
Verizon Communications Inc., which co-owns the wireless company with Vodafone Group Plc, slid 9 cents to $28.62 in New York Stock Exchange composite trading at 4 p.m. AT&T fell 49 cents to $24.46. Apple, based in Cupertino, California, dropped $12.13 to $256.17 on the Nasdaq Stock Market.
Peter Thonis, a spokesman for Verizon Communications, and Mark Siegel, an AT&T spokesman, declined to comment. Tenille Kennedy, a spokeswoman for Research in Motion Ltd., didn’t return a call seeking comment.
The iPhone has helped AT&T add subscribers even as the U.S. mobile-phone market nears saturation. There are enough wireless devices for more than nine out of 10 people, according to the CTIA wireless industry association.
In the first three months of this year, about a third of AT&T’s iPhone activations came from customers who were new to the carrier. Without those 900,000 new subscribers, the company may have posted a loss in contract customers that quarter, analysts said.
Still, Dallas-based AT&T has battled customer complaints about its wireless service, especially in New York and San Francisco, and dedicated an extra $2 billion to upgrading its network this year.
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