AT&T Chief Presses to Keep iPhone, Deepen Wireless Push

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Published at: online.wsj.com

Disrupter

April 27, 2009

Analysis by: GLG Expert Contributor

The iPhone has disrupted the wireless industry.  For many years, people have stated that Americans would not pay premium prices for a cell phone.  SMS was still generating most of operator's data revenue.  Apple changed the playing field with the iPhone.  It brought a compelling product with a great user interface and a total product offering with itunes and their app store.  Now all of the other traditional manufacturer's are copying the Apple success and trying to compete with them.  Of course, AT&T will stay with the iPhone as the Apple brand is extremely strong and their followers are loyal.  You must wonder, what will they bring next?

There Will Not Be Long Term Implications on ATT Iphone Exclusivity.

April 22, 2009

Analysis by: GLG Expert Contributor

I believe that there will not be long term implications on ATT Iphone exclusivity. Handsets initially released on one network is a long industry practice that has been going on for years. It has not led to domination of one Network operator over the others. Apple would prefer to see the iphone on competitor's networks as soon as possible to  help them get a wider distribution and market share.

Used Networking Gear Sales Spike

April 22, 2009

Analysis by: GLG Expert Contributor

Sales of preowned networking equipment are on fire, according to a recent survey conducted by the United Network Equipment Dealer Association (UNEDA). UNEDA, an alliance comprising more than 300 used networking gear providers worldwide, polled its members and found that the weak economy is fueling sales of preowned equipment. According to the survey, two-thirds of UNEDA's members found that business improved in 2008, with members reporting combined annual revenues of more than $2 billion.

The iPhone is just a device, not business success in a box

April 22, 2009

Analysis by: GLG Expert Contributor

The article is important since it illustrates how wireless has become the vehicle of choice for the large wireline/wireless service providers to ride out the current economic challenges. AT&T's emphasis on wireless builds on the current market realities and is the right way to go.  Is it critical that AT&T keep an exclusive iPhone deal?  I think not.

I switched to AT&T because I wanted an iPhone - which I love.

April 20, 2009

Analysis by: GLG Expert Contributor

Apple would be insane to extend AT&T's exclusivity. Every provider would like to be able to sell the iPhone and there are iPhone competitors entering the market. To remain competitive - Apple needs to recruit as many carriers as possible.

AT&T's Exclusive Hold On The iPhone Stifles Innovation And Leads To Predatory Practices

April 17, 2009

Analysis by: GLG Expert Contributor

Without a competitive landscape, AT&T is free to dictate whatever pricing structure the want for iPhone data plans. AT&T is currently stifling application innovation for the iPhone due to restrictions they are placing on applications which utilize their bandwidth, despite the high cost and "unlimited" nature of these plans. When users adopt a platforn such as the iPhone as a means of performing important day to day activities, it is quite discomforting to be forced to accept the terms of only one service provider, since there is no other choice.

AT&T Burying the Landline Bundle

April 17, 2009

Analysis by: GLG Expert Contributor

The AT&T CEO’s comments imply the importance of the iPhone exclusivity, but the other statements about wireless being first before wireline foretell the possible burial of the landline bundle.

Products Drive Revenue But Need Investemnts in Infrastructure

April 16, 2009

Analysis by: GLG Expert Contributor

While wireless customer growth is exceeding landline customer numbers, the US wireless market is reaching saturation and the market abroad can be difficult to penetrate.  The challenge for providers is to sell more to existing customers to increase revenue and AT&T's strategy of offering advanced handsets/services looks, at least in the short term, to be a smart model for the industry.  However, the industry needs to continue investment in infrastructure to support these products.

AT&T Chief Knows The Value of the IPhone

April 16, 2009

Analysis by: GLG Expert Contributor

AT&T Mobility losing exclusitivity on the IPhone could have devastating effects on AT&T's bottom line because the IPhone has been the main driver of AT&T Mobility the past few years.  Since Verizon is now the biggest wireless carrier in terms of subscribers, the main uniqueness AT&T has left is the IPhone.  The standing comment many of my wireless associates make is that AT&T Mobility is really the IPhone Company.  Should AT&T lose their IPhone exclusitivity with Apple, combined with the dwindling days of landline, AT&T could be facing some daunting challenges.

AT&T and Apple on Exclusive Market vs. Exclusive Products

April 15, 2009

Analysis by: GLG Expert Contributor

The outcome of extending the iPhone contract will probably set the trend for future contracts to have terms for exclusive markets compared to exclusive products.