AT&T Sees No Threat in a Verizon iPhone

AT&T says it’s unfazed by persistent rumors of a Verizon iPhone debuting this year.

The telecom company’s CEO Ralph de la Vega said this morning during the JP Morgan investors conference that discounted plans would retain customers.

70 percent of AT&T’s subscribers are on family plans, and it would be difficult to transition multiple devices, he explained. Additionally, 40 percent of subscribers are part of corporate plans, and employers are unlikely to switch company-owned devices for a new carrier. (There is some overlap between the two types of plans.) The CEO added that “churn” rates (i.e., a measure of customers leaving) for AT&T are staying at record-low rates, so he expects that iPhone customers will remain loyal.

Verizon iPhone rumors gained heat in March when The Wall Street Journal published a story citing sources who claimed Apple was preparing to produce a CDMA-compatible iPhone in September. CDMA is the standard used on Verizon phones.

Many tech observers have wondered whether a Verizon iPhone would compel a large number of AT&T customers to switch to the rival carrier. AT&T has been the exclusive carrier for the iPhone since its release in 2007, and the touchscreen handset has been a major source of revenue for the carrier. Incidentally, many dissatisfied iPhone customers have complained about the performance of AT&T’s 3G network since the release of the iPhone 3G in 2008.

Though AT&T is likely talking tough to impress investors, I’d lean toward agreeing that a hypothetical Verizon iPhone probably wouldn’t pose great threats to AT&T for the reasons cited by de la Vega. Some peeved customers will probably switch over, while others cling on to see if the network improves as a result of people leaving. The parties who should feel nervous about a Verizon iPhone are those already offering smartphones through Verizon: HTC and Google.

Via Business Insider

See Also:

• Analyst Predicts Verizon iPhone Announcement Next Week
• WSJ: Apple to Produce Verizon iPhone in September
• Verizon to Apple: We Want the iPhone
• Verizon Attacks the iPhone, Hints at Upcoming Droid

Photo: Jon Snyder/Wired.com

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