It seems that AT&T may have made one last Hail Mary play in order to remain the exclusive carrier of the iPhone in the US. According to Wall Street analyst Brian Marshall, quoted by Computerworld, AT&T may have been allowed to hang on to the deal until the end of 2010 by offering significantly discounted data plans for Apple’s iPad 3G.
In the run up to the iPad launch, many touted Verizon as a shoe-in to become the next iPhone carrier alongside AT&T as well as to provide data services for the iPad. This never happened.
Although his claims appear unsubstantiated, Marshall, who currently works for BroadPoint AMTech, believes that AT&T, in a desperate bid to hold on to the lucrative iPhone carrier rights, made some serious sacrifices in providing a hugely discounted data contract for iPad owners.
Consumers questioned the need for another 3G contract alongside their iPhone when the iPad was announced with many pundits claiming that the price of the service would be key to Apple’s strategy. By granting an additional six months to AT&T’s exclusivity, it appears Apple was able to meet this target.
AT&T currently offers two data plans for the iPad 3G, one for $14.99 per month for up to 250MB and another at $29.99 for unlimited data. Neither package requires the user to sign a contract and both include free access to AT& Wi-Fi hotspots. By comparison to the competition, this is a very reasonable deal for iPad users and one that will surely have come at a cost to AT&T, which has struggled with wireless data loads since the iPhone was launched.
By contrast to the US, Europe has multiple carriers for the iPhone that are currently fighting to offer data plans for the iPad when it is released this summer.
AT&T’s network has long been criticized for a number of failings including dropped calls and poor coverage, notably so during a very public spat between the company and Verizon. Verizon launched a stinging ad campaign comparing its 3G coverage to AT&T’s while also aping Apple’s iPhone ads with the slogan “There’s a map for that” resulting in a legal back and forth between both companies. In response to AT&T’s suit that claimed the ads mislead the public, Verizon simply commented “the truth hurts”.
Verizon has reportedly conveyed to Apple its desire to carry the iPhone but, at present, it seems they can’t offer the right goods to seal the deal. Not even, it appears, the offer of a better network.
via ComputerworldPosted in: Blog, Rumors
Tagged with: 3g, apple, att, data, iPad, iphone, network, verizon