iPhone Is Coming To T-Mobile USA In Q3 [Exclusive]

By Leander Kahney (12:47 pm, Jul 21 2010)

T-Mobile USA is very close to getting the iPhone in the fall, ending Apple’s exclusive relationship with AT&T, according to a highly placed source at the wireless company.

Talks between Apple and T-Mobile are at an advanced stage, our source says, and it’s 80 percent likely that the iPhone will be coming to T-Mobile in Q3.

The source works at T-Mobile but asked not to be quoted directly and to remain anonymous because they aren’t authorized to talk to the press.

T-Mobile’s parent company, Deutsche Telekom, which carries the iPhone in Germany, was able to influence, the source said. T-Mobile USA is the fourth-largest U.S. carrier with 33.7 million customers.

Apple’s exclusive contract with AT&T is reportedly ending this year, and many expect Apple to offer the iPhone to other wireless companies. Overseas, Apple has routinely added extra carriers when exclusivity deals in those markets expire.

Most pundits expect Apple to add Verizon Wireless, the nation’s largest mobile phone provider with 92.8 million subscribers. AT&T is the second-largest US carrier with 87 million customers. The major problem is hardware: Verizon’s network is based on incompatible CDMA technology. However, Apple is already working with chipset-supplier Qualcomm on a CDMA chip for the iPhone, according to Wired.

But some analysts think it would be a lot simpler for Apple to go with T-Mobile, even though the carrier has a third of the customers of Verizon. AT&T and T-Mobile are the two primary GSM carriers in the US, and the iPhone wouldn’t require major hardware changes. Indeed, many T-Mobile customers already use unlocked iPhones on the company’s network.

Perhaps more importantly, a switch to Verizon would require a major realignment of corporate allegiances. Verizon is committed to Apple’s main wireless rival, Google, and has spent the last year heavily marketing the search giant’s Android phones. Verizon routinely runs ads directly attacking the iPhone. The most recent attack ad mocked the iPhone 4”s “death grip.”

Several analysts see Apple moving to T-Mobile. Last month, Shaw Wu, an analyst with Kaufman Brothers, predicted the iPhone will come to T-Mobile because of its compatible GSM network. “We continue to believe that T-Mobile USA is the most likely candidate given its use of similar cellular technology as AT&T,” he wrote in a note to investors.

Doug Reid, an analyst at Thomas Weisel, has also said on several occasions that the easiest way for Apple to extend the iPhone market would be to offer the device to T-Mobile. ”Apple wants to move away from exclusivity; T-Mobile would achieve this for Apple in the U.S.,” Reid told The Street. Reid noted the battle lines drawn up between Apple and AT&T versus Verizon and Google.

In fact, Deutsche Telekom’s CEO René Obermann already told the Financial Times that T-Mobile is getting the iPhone. ”T-Mobile USA is hoping to start selling the popular smartphone later this year or next year,” he said.

One important point, to which I don’t have the answer, is whether the iPhone 4 is compatible with T-Mobile’s 3G network. Customers with unlocked iPhone 3GS are able to use T-Mobile’s Edge data network, but not the faster 3G, which operates on the 1700/2100 MHz bands. According to Apple’s specs, the iPhone 4 adds the 2100 band, but not the 1700 band, which has led some to conclude that it is incompatible with T-Mobile’s 3G network.

However, there is some debate whether Apple simply didn’t list the 1700 band, which seems to be the convention when listing such specs. And no one has yet tested the iPhone 4 on T-Mobile’s network. Despite the efforts of the Dev Team, there isn’t yet a publicly available unlock for the iPhone 4.

T-Mobile declined to comment. “T-Mobile does not comment on rumor or speculation,” said the company’s PR department in an email to CultofMac.com.

Apple didn’t respond to a request for comment.

Apple already tried to partner with Verizon before the iPhone launched. Apple offered the carrier an exclusive deal in 2007, which Verizon rejected over issues of software control and revenue sharing. The iPhone has been credited with AT&T’s robust growth these last few years.

80 comments »

About the author

Leander Kahney is the editor and publisher of Cult of Mac, and author of three books about technology culture: Inside Steve’s Brain, the New York Times bestseller about Steve Jobs; Cult of Mac; and Cult of iPod. Leander has written for Wired, MacWeek, Scientific American, and The Guardian in London. Follow Leander on Twitter @lkahney and Facebook.

(sorry, you need Javascript to see this e-mail address)| Read more posts by Leander Kahney.

Posted in Apple, iPhone, News, Top stories |

bizu
I am SOOO iFried…i have had the iPhone since Gen1 and I do love it.. i just need a break… MOSTLY from AT&T.. i can’t stand them.. they are all Ã‚ssholes in their service.. dropped calls even before i pick up the phone.. i am taking a break from the iphone when it goes to Tmobile and picking up something with an ACTUAL keyboard.. the MyTouch slide 3g.. can’t WAIT! it looks so nice and so much fun to work it :)
I am tired of the onscreen qwerty and it’s delay with keys… UGH!:)
again… i repeat.. the iPhone is the best phone out there and nothing can touch it and i love it, but i JUST need a break.. i’ll play with the Mytouch slide and when iPhone 5 comes out, i’ll head back :) peace
Michael Kleinpaste
The words that validated that this is BS are “Sources…”, “…reportedly…”, “…likely…”
The only word I had to see to recognize the BS is “analysts”.
iPhone released in 2007, Apple and AT&T in !!!5!!! year contract. Due the math “analysts”. The technologies of the different carriers are irrelevant, it’s the contract that’s keeping them from expanding.
Erin’s Dad
Ummm…I would by a Kin from Ms. Zeta-Jones, so yeah, the 4G is a slam-dunk.
Yum.
(Sorry Emilio)
Jose
All of you are missing the important issue. It does not matter if T-Mobile gets it or Verizon. AT&T has such expensive plans for one reason..The iPhone!!!!!
People pay crazy rates just to have an iPhone. No Matter where it goes now when Apple loses exclusivity they will have to lower there prices. Competiion. Let me give you an example. T-Mobile has unlimited everythnig for 85.00 after tax. Same plan with AT&T (not unlimited internet) is about 127.00. That a 40.00 difference. Huge when you add that month to month. ATT&T wil be forced to lower there rates and when they start losng people becuase now the have options things will change. Companies never change unless it affects there pocket book (i.e. Dropping Stock, Losing customers, Losing exclusivity).
We should all hope it goes to anybody…Who cares as long as it forces AT&T to wake up and let them fight out lower prices to our content.
http://www.jeremyshockley.com Mr Mobius
Here’s the real dope. There are three conditions that have to be met for this “rumor” to have any possibility of being true. First the technical: T-Mobile USA uses Band IV of the UTMS protocol, the infamous 1700GHz for uplink and 2100 down. While this is part of the UTMS protocol it is less frequently used. That said, anyone willing to do the digging would have looked at the tear downs of the iPhone 4 and found this chip inside. This is the only chip on the market that would be able to handle all the UTMS frequencies and auto switch which is indeed what the iPhone 4 does. A simple baseband update would enable the 1700 frequency but the phone must be sporting this chip. http://www.infineon.com/dgdl/PMB5701-SMARTi_3G_final.pdf?folderId=db3a304412b407950112b408e8c90004&fileId=db3a304412b40795
0112b4120f451827
Secondly would be the contractual obligations to ATT and a contract with T-Mobile USA. The ATT contract is all speculation about the 5 years or not 5 years. Try to find a hard evidence and not just hearsay that the original exclusivity was 5 years. Its a tough find. Lastly T-Mobile is owned by Deutsch Telecom in Germany. It’s a very large company enabling global roaming at very good rates. T-Mobile Germany, UK, both carry the iPhone 4. They have the know how to enable visual voicemail in their networks quickly. T-Mobile’s 3G network may lack the non-major metro area support but it’s blazing fast. In fact it’s the fastest 3G network in the US at the moment. It’s a fully enable HSPA+ 3G network. http://www.youtube.com/watch?v=iE8LGEcDT-w
I hope this is true but there are many factors that keep me using my first gen iphone on T-mobile since the day I bought it. I would love to upgrade to better data speeds and fast UI on the iPhone 4 but these three hurdles must be cleared for me to do so.
Ricknexus
@Mr Mobius –
So is it safe to say that no one has found that chip on the iphone 4? I know there has to have been some tear downs already? I would absolutely love it if tmobile got the iphone 4 or any future iphone.
Come on magenta!!!
Kyle
I will be the first one in line for a T-mobile iPhone. I was planning on getting an iPhone regardless of carrier in January anyway. I would be able to get it a lot faster if it came to tmobile.
TheTruth
I have had T-mobile 7 years strong. ALL that talk smack about T-mobile are haters and have never had T-mobile. Everyone I know has been with them for 5 years or longer. T-mobile rocks and have a loyal fan base unlike Verizon and ATT that are all mostly flip floppers chasing to have the “next cool phone”. T-mobile despises u types of people. We may be smaller but I can say I’m never leaving T-mobile, no matter what. I-phone or not…….
hema
http://b87deic5o78sgy41v6rlk5pdt3.hop.clickbank.net/
http://www.iphonesaccessories.net shahid
nice website. I just view http://www.iphonesaccessories.net and there i found some good iphone accessories and with quick reply. hope so you will also like that.
James
Thank you for breaking this story COM. Now……… UPDATE PLEASE!!!! Even though the t-mobile iphone is rumored by the end of september there are more rumor updates the Verizon iphone. I really want more info on this. I was going to break my contract and leave t-mobile for the ATT when someone told me about this.
super t-mobile
have always wanted the IPhone but will never go to AT&T to get it. I love T-Mobile and REALLY hope they get the IPhone soon I am do for an upgrade Please T-Mobile get it all worked out by then I will be the first to get one in my family
Chris
I appreciate that someone is finally treating this topic appropriately. I have seen so many times that people assume that the iPhone’s UMTS service is compatible with T-Mobile USA and it seems not to be as of yet. Maybe it really does support the 1700 MHz band under the covers, but nobody really knows yet. The iPad definitely does not support T-Mobile USA’s 3G band (evidence from someone taking it apart http://www.geek.com/articles/mobile/how-to-hook-up-your-ipad-to-t-mobiles-3g-network-2010053/).
Alex
I am using an iPhone 4 with tmobile and it Works well once i had 5 mbps on 3G
http://www.pinkpine.com Sam
my iphone 4 works great on t-mobile. and i got a factory unlocked one from http://www.pinkpine.com so i can upgrade to latest software always yeehah!
Manny
yea, but you’re on edge right?
Joshua
Verizon’s CEO just announced tha they will not be getting the “I-Phone anytime soon whatsoever” The ball is in T-mobiles court now.
Heres the article from MSNBC: (copy & paste)
http://technolog.msnbc.msn.com/_news/2010/09/23/5163512-verizon-ceo-iphone-not-coming-any-time-soon
Kelly CA
My brother’s ex-wife stole all of his money & cheated on him. After stealing all of his money, she was able to get herself a couple iphones.
Shelly
Tmobile users cannot use the Iphone 4 because it uses a micro sim card instead of a standard size sim card. This means that currently no t-mobile sim card will fit into an iphone 4. It can still be JB and people are doing it already.
Anonymous
Thanks! Have you seen the new iPhone 5 yet? Looks really cool got to say.
adam
Nope! It will be AT&T by then. But I guess you are right regardless.
Golubski12mark
what Q3?………is t mobile retailers selling this item? when will rhis be for sell?
Pasillas_c
there is an unlock for iPhone 4 using Cydia and black rain it works on any network its unlocked and jailbreaked.
Pasillas_c
there is an unlock for iPhone 4 using Cydia and black rain it works on any network its unlocked and jailbreaked.
Pasillas_c
Also it can work on simplemobile or anyother network with GSM
Loera1998
I think The I phone should come to T mobile
Janice (:
I agree with Loera1998 T-mobile should be able to have iphones along with other phone companies as well. People already have the iphone’s jail broken and it works for other phone companies as well. I have an iphone 3g and I have T-mobile i don’t see why T-mobile doesn’t have it. It would be a lot easier if they did that way people can just buy the iphone and not have to worry about paying for it to get jail broke, so it won’t only save people money but it would give everyone there satisfaction.