ATandT Can't Whistle in the Dark Forever
5. Options are never good for a company
AT&T might be able to keep a stiff upper lip when it discusses
the iPhone, but privately, it
knows that a Verizon iPhone isn't good at all. The best thing that can
happen to any company, let alone a mobile carrier, is to have exclusive control
over the device that everyone wants. But as soon as consumers are given the
option to have that product in several places, it spells trouble. Price wars
erupt. Marketing costs go up. And all the while, the only company that's
benefiting is the device's vendor. Neither AT&T nor Verizon Wireless would
be happy about that.
6. It will cost more in the end
Having the iPhone on multiple carriers might be best for Apple, but it will
be a costly decision for AT&T. As mentioned, the company would need to
invest more in marketing and potentially find ways to reduce plan costs to
entice consumers. But it goes beyond that. A new battle would erupt over which
carrier offers the best coverage and access to 3G networks. If Verizon offered
better coverage, AT&T would need to invest in towers to increase its
coverage and 3G availability. And that costs significant amounts of cash. Right
now, it can do that on its own time. With a Verizon iPhone on the market, the
pressure would be on.
7. Where's the benefit?
AT&T needs to say that there isn't any problem with a Verizon iPhone and
it's not concerned by it. But where does it see the benefit of such a device
hitting store shelves? It might not feel (publicly) that a Verizon Wireless
iPhone could hurt AT&T, but it knows that the sooner Verizon gets the
iPhone, the sooner it will need to do whatever it takes to stay atop the iPhone
market. In other words, a Verizon iPhone isn't good for AT&T in any way.
And it needs to stop saying that it's fine with it. It isn't. 8. A more powerful Apple is a dangerous Apple
The last thing AT&T wants right now is a more powerful Apple.
Although it publicly says that Apple is a partner and that it wants to see the
company succeed, it really doesn't. The only thing AT&T wants to see
succeed is the iPhone that's available exclusively on its service. It makes
sense. With Apple offering its iPhone on multiple carriers, it will have more
leverage in the mobile business. And with more leverage, it's able to wrest
more control from the carrier. AT&T doesn't need that. It wants to be able
to control Apple's ability to offer phones to customers. If it loses that, it
loses its only advantage.
9. It loses all leverage with consumers
By offering the iPhone to Verizon Wireless customers, Apple will
benefit. And all the while, AT&T will lose its grip on consumers. Think
about it: Right now, the only way for consumers to have the iPhone is by being
an AT&T subscriber. That means that AT&T can use whatever policies it
wants to ensure it's profiting nicely off those customers. That's not
necessarily a bad thing-in fact, it's good business-but it will lose that if
Apple brings the iPhone to Verizon's customers. At that point, AT&T would
have to play especially nice with customers to ensure they don't jump ship.
Worst of all, it will need to adjust pricing to attract new business. The carrier
won't like that. 10. The enterprise has a choice
One of the best things about having the iPhone available exclusively
on your own service is that it attracts enterprise customers to your business.
Although consumers are nice to have, the enterprise can do wonders for a
carrier. Unlike consumers, which enter into two-year contracts that, upon
paying a fee, can be broken, companies are locked in. The average company will
enter into an agreement with a carrier and be stuck with it for several years,
regardless of when it would like to get out. And although the iPhone was
originally a consumer-oriented product, it's quickly gaining ground in the
enterprise. AT&T
would like to capitalize on all that business. It certainly won't want to
share it with Verizon Wireless.









