Wednesday, June 10, 2009

ATT Is In Trouble - VW And T-Mobile Should Capitalize

ATT was booed at Apple's WWDC 2009 during the keynote.  Why?  From the iPhone user perspective, ATT will not be able to deliver critical network functions that are key points in Apple's new iPhone 3.0.

When the Apple-ATT partnership started, things couldn't be better for the two parties.  But with 3G network issues and now the letdown with network support for the new iPhone, things couldn't be worse for ATT.

And ATT will be forced to trying and keep its iPhone exclusivity as a defensive measure (More at Onxo Gadgets).

So, what is next for the wireless giants?  First, let me be clear.  I detest these wireless providers for the way the treat us so I don't care whether they get screwed over by the handset makers or by each other.  So, it is obvious that the other guys should do what they can to disrupt the Apple-ATT alliance.

For now, it seems like ATT and Verizon Wireless seems to be focusing in knocking Sprint out of the game.  First Verizon's CEO made a public statement that VW will get the Pre in six months (which Sprint denied but Palm has not said a word).  Then this Monday, Apple launched the new iPhone 3G S at $199 (the Pre is $299, $199 after rebate) and placed the original iPhone 3G at $99.

But it's also a perfect time for VW to go after ATT by trying to get Apple out of its camp.  And VW can do that by bring LTE to the market in a timely manner and convince Apple not to extend its iPhone exclusivity deal with ATT.

After all, conventional wisdom is that the subscribers tolerate ATT only because of the iPhone.

Then there is also T-Mobile USA.  Apple already deals with T-Mobile, the parent company.  Perhaps, T-Mobile USA should be doing what it can to capitalize on any rift between Apple and ATT.  If Apple wanted to bring the iPhone to another network in the US, T-Mobile is obviously the easier route to go. And Apple has said that it doesn't like CDMA.

If Apple does offer the iPhone 3G with T-Mobile, there are hundreds of thousands if not millions who would jump ship and go with T-Mo in a heartbeat.  At $99.  At $149.  Even at $199.  If this were to happen, for once, T-Mobile (my current network) can put the hurt on ATT and Verizon Wireless at the same time.

Note:  I did leave Sprint out of the equation.  Sprint isn't GSM nor is it Verizon.  Sprint's strength will lie in how quickly it can get a national WiMax network to as many major cities before Verizon's LTE network has time to mature.

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