Analyst: T-Mobile, Not Verizon, Will Get iPhone

Ed Sutherland ()

Analyst: T-Mobile, Not Verizon, Will Get iPhoneT-Mobile — not Verizon — is more likely to get the nod when Apple is expected to expand it U.S. iPhone carriers as early as this fall, one analyst suggested Thursday.

Kaufman Bros. analyst Shaw Wu told investors the likelihood that Apple will add a second iPhone carrier in the U.S. to augment the currently exclusive arrangement with AT&T is “closer than reality than ever.” Additionally, “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.

Such a deal would have advantages both for the carrier and the Cupertino, Calif. iPhone maker. “We are picking up that T-Mobile views the iPhone as a key in winning back lost customers and as such could be more likely to agree to Apple’s terms,” according to Wu. Verizon and Apple reportedly have been at odds over the iPhone’s price. Apple wants Verizon to pay $700 per iPhone, while the carrier is paying $400 per Droid, an Android-based rival, according to analyst Maynard J. Um.

Also, Apple sees expanding the iPhone’s availability beyond AT&T as a way to counter the growth of such handsets as the Droid. Google has taken advantage of the single source for iPhone owners to offer its Android platform on a number of U.S. carriers. The tactic has propelled the iPhone rival from 0 percent of the market to 9 percent.

“Our sources also indicate that one of the key reasons why Apple is more open to adding U.S. carriers in the 2011 is to attack Android more directly,” Wu told investors. “Looking at industry data, Android’s wins have been where iPhone isn’t available and that could change dramatically if the iPhone were available on more carriers,” the analyst adds.

Another point in T-Mobile favor is technology. T-Mobile’s 3G service operating at 1700MHz and 2100MHz, which closely matches the iPhone 4 and iPhone 3GS’ 2100MHz 3G. AT&T supports 850MHz and 1900MHz frequencies.

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[via AppleInsider]

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About the author

Ed Sutherland

Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.

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  • Johnny Rocket

    This article quotes Shaw Wu as saying the T-Mobile deal “closer than reality than ever.”

    Is this a typo or a misquote? “Closer TO reality than ever” perhaps. Or some arcane reference to ether ware?

    As with many things iPhone, print the rumor, wait for the truth…whatever Steve and Co decide it should be. Really. Whenever.

  • Daniel

    The thing is, strategically, a T-Mobile partnership could have been very valuable early on in halting Android momentum (and it would have been easier from a hardware perspective). Now that Android receives heavy emphasis from Verison, there’s more strategic value in going after Verison (the larger player) than T-Mobile. And it would remove the bigger black eye from Apple’s platform, AT&T.

  • Daniel

    Well, either way would, but T-Mobile’s not nearly as strong of a player as Verison and doesn’t have Verison’s coverage.

  • Appolicious

    Yes it’s just a rumor. But it’s a rumor I would like to see. I have more respect for T-Mobile than either clumsy goliaths like AT&T or Verizon.

    And yes it’s just a rumor, but a rumor that makes more sense than Apple/Verizon. For those ignorants that have not followed more closely, T-Mobile has openly been pro-iPhone, even tho they are not a current carrier. T-Mobile website and tech support has been known for assisting iPhone users on setting up their iPhones to T-Mobile network (no doubt, this infuriates AT&T). Also T-Mobile already has 3 years experience in being an Apple iPhone carrier, in Germany and other Euro countries. It’s not like T-Mo is clueless about the iPhone. They know the iPhone very well. They’ve been an official carrier of the iPhone for years. Just not in the USA.

    So T-Mo has a more positive relationship with Apple, whilst Verizon has spent tens of millions of dollars on insipid robot ads hyping up an iPhone competitor.

    Unlike price-gouging Verizon and AT&T rates, T-Mobile is legendary for offering more-affordable rate plans. Hence, if allowed as USA iPhone carrier, they would be a great competitive alternative to AT&T.

  • http://www.davethetruthgrippo.com Dave “the Truth” Grippo

    Now hold the phone…(cough, cough!) I’ve always heard that T-Mobile’s network is the most inferior in comparison to both Verizon and AT&T. T-Mobile supposedly has slower network speeds, 3G limitations to mostly cosmopolitan areas, major coverage issues, etc.

    Considering all of the problems iPhone users continually complain about with AT&T as a carrier, wouldn’t T-Mobile’s offering of the same phone be a hundred times worse and just exacerbate these very same issues?

    Just saying.

  • http://twitter.com/alexchoi Alex Choi

    Ugh … another story of an analyst predicting something. I’m grow weary of these non-stories.

  • The Rios.

    Finally some good news.

  • The Rios.

    ohhh i forgot to say this;

    T-Mobile recently changed their website from Flash to HTML

  • MacRat

    Another post in support of T-Mobile USA.

    I have been a customer for over 10 years now using a variety of unlocked phones on their network.

    Their support is always helpful and never have any issues with helping get a customer set up on a phone T-Mobile doesn’t sell.

    I’ve also run into many cases where I had a full voice/data signal on T-mobile in areas were my friends’ AT&T iPhone had no service at all.

    their pricing is also very nice. my current plan is 500 voice with unlimited data and SMS for $59.99.

  • http://www.grinningidiot.com JAYnLA

    I’d gladly switch to a carrier based in someone’s basement over AT&T. They’re pushy and do not value long term customers — there’s simply too much ‘gotcha’ in the way they handle us. I ditched them and will most likely not use an iPhone again until it’s on another carrier.

    BTW — going cell free is nowhere near as scary as I thought it would be. It’s been a week and, frankly, it’s quite nice.

  • http://www.freshlymobile.com mortonmanor

    Dave Grippo said: ” I’ve always heard that T-Mobile’s network is the most inferior in comparison to both Verizon and AT&T. T-Mobile supposedly has slower network speeds, 3G limitations to mostly cosmopolitan areas, major coverage issues, etc.”

    Actually T-Mobile has committed to rolling out the fastest 3G network of any of the carriers by the end of the year. The speeds should equal or best the predicted 4G speeds of Verizon/AT&T and studies in early markets put it head to head with Sprint/Clear.

    Many studies put T-Mobile’s network/service on par of just slightly behind Verizon. Consider the latest Consumer Reports Study where T-Mobile finished a close second with Sprint and then AT&T farther behind. T-Mobile was also among the lest expensive.

    Personally I think that T-Mobile makes the most sense. Verizon’s culture and advertising are diametrically opposed to Apple’s. I also find it hard to believe that Apple would have spent $$$$ advertising simultaneous voice and data capability only to later introduce a phone that could only do one at a time. Just doesn’t seem likely.

    David

  • Appolicious

    @ Dave Grippo

    Your “what I heard about T-Mobile” is either grossly misinformed or purely anecdotal based on your limited personal opinion, and you have nothing to back you up.

    As for my statements above in support of T-Mobile’s reputation, Consumer Reports and JD Powers ratings in the last 2 years back me up that T-Mobile is tops (or near the top, nearly tied with Verizon) as far as customer satisfaction.

    http://digitaldaily.allthingsd.com/20091201/att-ranked-last-in-consumer-reports-best-cell-phone-service-survey/

    http://www.laptopmag.com/mobile-life/rating-carrier-customer-service.aspx?page=7

    http://www.webpronews.com/topnews/2010/03/04/t-mobile-ranks-highest-in-customer-satisfaction

    Obviously T-Mobile’s coverage is not as wide as Verizon/AT&T, but the obvious take is that IN REGIONS WHERE T-MOBILE IS PRESENT, their customers are highly satisfied.

  • Alfred

    Does anybody know approximately how many countries have the iPhone on multiple carriers, vs. the number of countries where it is only available on one?

  • Sean Peters

    I thought T-mobile was on a different frequency band than the iPhone will support? How could the iPhone get onto this carrier?

  • http://www.fort90.com/journal/ fort90

    Yeah, count me as another person that would rather deal with less than stellar coverage over exorbitant prices and shit customer service.

  • Daniel

    Come to think of it, doesn’t Apple partner with T-Mobile in some parts of Europe? Still, though, in the US market (and in opposition to Android) a CDMA iPhone makes more sense than targeting T-Mobile’s Android phones’ arguably small market share.

  • porkchop1234

    @ Alfred
    Here in Canada the iPhone is on the 3 major carriers (Roger’s, Sprint and Telus depending on which province you’re in). I know in Britain its carried by at least 2 carriers, I think the name of one of them is Orange. I’m told in Germany and France they each have a couple of carriers. Not sure about the rest of Europe or any of the Asian countries.

  • bernieT

    @ Daniel

    It depends. As stated many times before, Apple might find it prohibitively expensive to manufacture a CDMA iPhone this year….. when if they simply wait until next year, Apple could easily roll out a 4G-network iPhone, a standard which by then may likely be supported by ALL networks (Verizon, AT&T, T-Mobile, etc). That means in 2011, Apple simply has to make ONE type of iPhone, which supports a 4G network standard that many carriers are planning to support anyways.

  • HiHoSilver

    my .02… I’ve been with t-mobile from the day I could port my cell # .. what was that 10 years ago. I picked T-Mobile after having a friend with different providers come over to my old house (so cal) and see who had service. T-Mobile won.. beat the CRAP out of ATT.. Verizon was fair..but pricey. I moved out of State (Colorado).. and it was all still good. Moved back to CA last year.. and still rock solid.

    That being said.. for the past 2 years.. I’ve had my iPhone 1st Gen and now a 3G on tmobile.. works great. Sure Edge is slower, but it works, and for the price/plan that we have.. its awesome.

    Only issue i have is not being able to do latest updates .. but only a few days after I’m set.

    We pay $100/month for unlimited internet (i’m grandfathered into Tzones!).. 400 txt for me, 300 for the wife, and unlimited mins on both phones.

    At that price/package.. I am not going anywhere.

    -HHS

    p.s. I tried to add my wife to tzones.. with the $10.99 tmotogo (or whatever they call it now) but it didnt work for some reason but get this.. JUST 2 days ago.. internet went active for her.

    That on top of what someone else said.. they know I have the iphone and they have actually tried to troubleshoot with me in the past.

    It’s all good.

  • DJ Break

    Listen to all these “pro T-Mobile” noobs posting on this board…think you’re all so smart and clever, must be on the payroll. I have T-Mobile and it sucks. It’s contantly losing signal strength, even on my new HTC HD2. The dropped calls are crazy. Don’t get me wrong, I love my Phone and low monthly bill but hate the spotty service.

  • JC Pancake

    Your HTC phone is the problem.

  • Gil

    T-Mobile still has to build out respectable HSPA+ & 3G coverage in the Bay Area and SoCal before this would make sense, and it does make sense. However, T-Mobile says that’s not happening until the end of 2010 at the earliest.

    Apple’s deal with ATT end’s in 2012, so maybe they are sticking with it because no better opportunity has popped up. Apple has multiple carriers all over Europe and the rest of the world because they are all using the same GSM UTMS standards. The new iPhone 4 will launch in 88 countries almost simultaneously? That’s huge.

    Verizon and Sprint are the only major carriers (just about anywhere) using CDMA tech (not counting China’s wonky version of CDMA). So with 40+ million customers, T-Mobile US is no slouch, and would help both Apple, and ATT too, by relieving them of quite a few disgruntled customers. Especially in those big markets like New York, L.A. and San Francisco. And with the iPhone, T-Mobile may also pick up a few Verizon defectors that wouldn’t jump ship for ATT.

    Realistically, T-Mobile is the only US carrier besides ATT that makes sense for Apple. But until they get the coverage, I don’t think it’s gonna happen. But you can bet that they’re working their ass off to buildout their network. As for all the negative advertising Verizon threw specifically at the iPhone over the last 18 months, I don’t think we’ll ever see a Verizon iPhone. And that’s even after LTE.

  • JC Pancake

    Quote: As for all the negative advertising Verizon threw specifically at the iPhone over the last 18 months, I don’t think we’ll ever see a Verizon iPhone. And that’s even after LTE.

    When Steve Jobs dies, and a new Apple CEO succeeds him, we will.

    But I still agree with you. It’s wishful thinking to see a Verizon phone any time soon. Verizon’s Droid campaign initiated some seriously bad blood-feud with Apple and Jobs. So T-Mobile is really the most realistic we can hope for.

    ********
    P.S. — I am not wishing malady or illness on Mr. Jobs. I am just stating the obvious fact that everyone dies at some point, and that CEOs (like Kings and Presidents) eventually get replaced by a successor.

    MY perspective (of a post-Jobs Apple) is also influenced by the fact that I have shaken hands with a former Apple CEO whose name happens to be Gilbert Amelio (Gil was the poor fella that Jobs ousted in 1997-98). It was at a Macworld Expo, many years ago. I cannot judge Jobs personality because I have never met Jobs, but I can tell you all that Amelio was a nice gentleman, willing to shake hands with lowly Apple users, willing to have little chit-chats with anyone walking the halls of Macworld Expo, and willing to sign autographs, etc. Amelio’s management style at Apple in the 1990s was TOTALLY OPPOSITE that of Steve Jobs today. Amelio was the one that endorsed the proliferation of the Mac clones. He was all about “opening up” Apple to the outside world. Unfortunately, even tho intentions were good, this management style proved to be a financial disaster, and Apple was on the verge of bankruptcy by the end of Amelio’s tenure.

  • Rudeboy

    @Dj Break
    Wether T-Mobile sux or not is your opinion, but the HD2 SUX. Ask anyone who ‘knows’ phones. Dont blame T-Mobile because you stood in line to buy a great phone with a sexy body and no brain….

  • Hyuk

    Couldn’t stand the HD2, I gave my wife my Bold 9700 and I got the HD2, she had signal and I didn’t, she would be able to talk on the phone with no problems, I would keep dropping calls, she would have battery left by the end of the day and I would be scrounging around for a charger.

    So I put my HD2 on craigslist and traded it for another Bold 9700. Only thing HD2 had was ActiveSync support, but the Bold 9700 had Wifi calling.

    I work in IT and was deploying a server, server room was in the basement I setup a Wifi Access Point and had full coverage.

    In the past year I had an iPhone, HTC Fuze, Blackberry Bold, MyTouch 3G, Bold 9700, HD2, Bold 9700 again.

    I would love an iPhone on TMO or Verizon (AT&T can go screw themselves), I love my Bold 9700 because it’s reliable (and my boss got an iPad 3g for me so who cares about lack of activesync), I wouldn’t mind a MyTouch, but never will I buy an HTC WinMo phone ever again!!!

    HTC + Android = Good! HTC + WinMo = Crap!

  • San

    you’re all wrong- i have had tmobile for 5 years and NEVER have network problems, EVER!!

  • Shane

    @David”The Truth” Grippo Maybe You Got it Wrong I did some comparisons with my family (At&T) And Me (T-Mobile) Coverage I told my cousin Call our aunt So He is first Doesn’t Get through and he had 5 Bars 3G Now I call Got through And had 1 Bar less them him I also Done Tests Who Has More Bars When I am With Him I Got More Each Time I Did This (5 Times) In 2009 – 2010 Internet I Dont Have Right Now And He Does To Be Honest Its Slow As Shit! My Mom doesn’t Have a fast phone right now (G1) And i Dont like Her Phone So She Might Get A (G2) (htc)….. So At&T May have more bars but the worst coverage (Chicago Testing) It was mainly All through out Illinois.. California Has Horrible At&T Its a Night Mare!!! Well If At&t wants to fix there network with 2,000,000 Dollars Let Them Screw Up And Die Out