Is T-Mobile Apple's second US iPhone partner?

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Apple is expected to dump its exclusive iPhone deal with AT&T next year. Speculation is the firm will ink a second US distro deal with Verizon - but now fresh speculation has emerged suggesting it will be T-Mobile, rather than Verizon, that emerges as Apple’s second US iPhone carrier.

This news emerges as the battle between Verizon and AT&T grows uglier as the former network puts its weight behind the Motorola Droid phone, which is alleged to have sold 800,000 units since launch.

Verizon originally rejected Apple's exclusivity offer three years ago over control issues. The company has also forged a rival partnership with Google to counter the iPhone offensive.

The Street tells us AT&T will lose its exclusive status in 2010 and repeats claims by Thomas Weisel analyst Doug Reid who says, "Apple wants to move away from exclusivity; T-Mobile would achieve this for Apple in the U.S.”

However, T-Mobile has only half as many users as Verizon with its 71 million customers. Reid doesn’t think Verizon will win an iPhone distribution deal, saying it is far more likely the firm will make a deal to sell other Apple devices like the elusive Apple Tablet or a future iPhone version running on long term evolution or LTE, 4G wireless technology.

"We expect Verizon to offer only 4G Apple handsets in 2011," the analyst said.

Apple has reportedly already begun testing an LTE-based iPhone, with some claims it has been testing the device on the Verizon network.

These plans face some hurdles - not least the lack of LTE chips for mobile phones - no one is making them yet and phones fielding the new tech aren’t expected to make mass appearance until 2011.

It is possible Apple has a plan to get ahead of the pack - Qualcomm last month slipped news that it is in talks with Apple “for interest in future cooperation,” as reported by Digitimes.

That report also said Qualcomm was worried for its future as the world’s leading smartphone doesn’t use its 3G chips.

In November, two reports said that a Qualcomm-.powered iPhone was in the works. One report suggested the device would use a new hybrid chip, to allow compatibility with both AT&T and Verizon networks in the U.S. Another analyst said that he had heard the deal between Apple and Qualcomm is in the works, a dual mode iPhone would be impossible to release in 2010 and if there was one, it would arrive in 2011 at the earliest.

Comments (15)

"Unfortunately, they will not choose t-mobile because their pricing is way too low"...

Because neither T-Mobile nor Apple would be able to come up with and introduce a new pricing/plan scheme specifically for the iPhone. Apple's selection for a second (or more) provider will have nothing at all to do with current prices/plans available via a given carrier. It will have everything to do with that carrier's ability to 1) handle the iPhone on their presence and 2) expand said network as new technologies emerge.

 

Oh, it also helps that any new carrier will allow Apple complete control over every aspect of that phone.

so we go from bad 3G coverage to worse 3G coverage. That's a good sign.

Just because exclusivity ends with AT&T doesn't mean Apple will dump them. It just means there will be more choice. I'd like the next iPhone to be a world phone so we have the option of Sprint as well. Verizon has the worst customer service I have ever experienced.

Seems unlikely.

The whole premise for why Apple may NOT put the iPhone on Verizon is that it would require another phone model, one which uses CDMA vs. GSM for communciation.

 

However, T-Mobile would require a different phone anyway. Its 3G network uses a different frequency than AT&T does.

 

So there's no advantage to producing another iPhone model just to get a few more customers on the worst network in the country. Creating a CDMA iPhone would be worth it. They'd get a phone that could work on Verizon and Sprint, which would add 130 million potential additional subscribers vs only 30 million on T-Mobile. 

Apple already has CDMA iPhones for Asia

Tmobile is a distant 3rd or 4th in terms of total subscribers as compared to Verizon and AT&T.  It makes no financial sense for Apple to add Tmobile since it's not adding as many customers as it would with Verizon.  Jobs said as much when explaining his original decision to go with AT&T.

The number of customers is not a fixed rate. It is a variable rate, with customer turn-over rates very high for mobile carriers. Look at the smart-phone growth AT&T has enjoyed since it began selling the iPhone.

Tmobile is a distant 3rd or 4th in terms of total subscribers as compared to Verizon and AT&T.  It makes no financial sense for Apple to add Tmobile since it's not adding as many customers as it would with Verizon.  Jobs said as much when explaining his original decision to go with AT&T.

Tmobile is a distant 3rd or 4th in terms of total subscribers as compared to Verizon and AT&T.  It makes no financial sense for Apple to add Tmobile since it's not adding as many customers as it would with Verizon.  Jobs said as much when explaining his original decision to go with AT&T.

Who cares what a triple poster thinks?

Let's assume for the moment t-mobile's 3G network is up to snuff.


It doesn't matter the number of subscribers t-mobile has because once the iphone is available there people will sign up to the network to get the iphone as long as pricing is competitive (versus AT&T).


I personally would have had the company sign a deal with Sprint.  But I'm assuming Apple has thoroughly thought through the situation and will make the correct choice.

i would love to see the iphone on sprint's network, i would switch back in a heartbeat. i believe that cdma is far superior than gsm. i've experienced better reception and better building penetration. plus, it would also be awesome to have 4g and nfl stuff on the iphone :D

I could have told you it would be WAY easier for Apple to add T-Mobile as a second partner when exclusivity ends AGES ago.  It makes perfect sense.  T-Mobile is the only other GSM carrier in the US, and Apple already has a partnership with them in various EuroNations.  Their US teams already support unlocked iPhones in the US, so they already have the infrastructure in place.  The only thing Apple needs to do is test a 1700MHz compatible 3G chip, which partner Infineon already produces en mass.  Apple could probably go from testing to implementing in under 6 months.  I'd be almost shocked if Apple hadn't already done some preliminary testing.  In fact, they probably won't even need to introduce a new model -- simply change the shipping cellular chip on all new manufactured models to support it, and they can stick with a one world phone model again.  They wouldn't even need to make the public aware of the update in hardware underneath.

i would love to see the iphone on sprint, i would make the switch back in a heartbeat. i believe that cdma is far superior to gsm. i've experience better service and better building penetration. plus, i would be nice to have 4g and nfl stuff on the iphone :D

The reason this makes sense is strategic.   If this were to become reality it would be a wint for all three companies.  

 

Apple would have to open the iPhone up to the 1700mhz but it could mean that ATT and Tmobile would begin to share their 3G network to give them wider coverage.  As it stands, they already share their 2G networks.  AT*T should begin to share the network and allow Tmobile to share the wealth by offering an iPhone