I have keenly followed the speculation over what would happen if AT&T loses iPhone Exclusivity and even though it is hard to tell, no one actually knows if that might ever happen. For AT&T, its arguments have been sustained by its alleged readiness for such a day, reiterating that, if AT&T should choose to end their exclusivity deal, the consistency of its phone network will keep it afloat as it will enable it retain most of its loyal customers. However, analysts have found that argument almost ironic when reflected upon the recent complaints that have plagued the company over its network in places like New York and San Francisco. The two cities have registered complaints with issues regarding the AT&T’s network.
Rumors over Verizon iPhone
There has been a resurgence of speculation over the Verizon iPhone issue yet again in recent days. Even though AT&T has denied such rumors, it remains to be seen if the speculated defections will be effected any time soon or in the future. AT&T has been trying hard to down play the speculations but not much is really known. It emerges however, that AT&T’s self-assured confidence arises from the fact that most of those who use its services are on family plans thus it would be inconveniencing to migrate all its subscribers at one go.
Tabulated figures show that about 70% of AT&T’s customers use family plans and another 40% use corporate discount plans, thus can’t be abandoned easily. With that in mind, AT&T knows that, even if the exclusivity deal with iPhone was ended, the company still stands to hold on to its duty-bound customers and those just unwilling to leave.
Why it Might Not Happen
Therefore, it appears AT&T need not be afraid if iPhone should decide to end their exclusivity deal. Even so, it is important to mention here that their deal is expected to come to an end in early 2011. Regardless of the fears however, there will be consequences for AT&T, as it will affect the company’s growth in terms of customer numbers and the competition would as well undoubtedly improve. That is, if Verizon lands the smartphone contract, then prices will become favorably and it is hoped that threre will be a marked increase in gains from AT&T’s current iPhone users. However, the suspected exit of AT&T customers in large numbers is unlikely to happen, and if there be any moves to change networks, the number of AT&T’s customers migrating will probably be on the low. That will be largely motivated by the fact that, for most of iPhone users in places such as the UK and France, their contracts are far from expiring and defaulting may result in penalties, inclusive of forfeiting one’s iPhone.
The least people can do is wait for the end of the deal early next year and see what happens. The consequences are obvious for both companies, and even their customers. AT&T’s confidence is welcomed but what remains to be seen is whether that confidence will help it keep its exclusivity deal with iPhone or not.