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  • Trouble

    • 8 out of 10
    • Ray LaMontagne
    • At first, Ray LaMontagne might strike you as just another breathy-voiced knockoff of folk/rock guitarists like John Mayer and Jack Johnson. But he's actually got a better voice than either, he tell

  • Chicago Transit Authority

    • 10 out of 10
    • Chicago
    • For those of you who don't know, Chicago didn't always suck, and everyone in the band didn't always play a keyboard. When the band started off they were pioneers of rock and jazz fusion, and guita

  • Aretha Sings the Blues

    • 6 out of 10
    • Aretha Franklin
    • While she didn't always have the best taste in song selection, Aretha Franklin is a must-study for anyone with interest in the human voice. She has the kind of powerful, recklessly passionate deliv

  • Goodbye Jumbo

    • 8 out of 10
    • World Party
    • Released in 1990, World Party's

  • Bowie at Beeb: Best of BBC Radio 68-72

    • 10 out of 10
    • David Bowie
    • The companion CD to a BBC television concert, BBC Radio Theatre has some of the best renditions of many of Bowie's best songs throughout his career. "I'm Afraid of Americans" is substantial

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News

Analyst: More iPhone Carriers on the Way

Apple's exclusive iPhone deal with AT&T won't last forever, according to Citigroup analysts, which means U.S. consumers might be able to choose from several carriers when they buy their combination iPod and smartphone.

While the exclusive agreement between Apple and AT&T has been successful so far, Apple will likely see less growth on the iPhone front since about 12 percent of AT&T's post-paid customers already own the handheld. Projections show that AT&T's post-paid iPhone customers will cap out between 20 and 25 percent, but other U.S. cell carriers have potentially untapped user bases ready to buy the iPhone.

Citigroup estimated that at a 20 percent penetration in the post-paid cell subscription market, Apple could pick up another 30 million iPhone owners by letting Verizon, T-Mobile and Sprint support the handheld. Verizon could sign on between 10 and 20 million iPhone users by itself over the next five years, according to Barron's.

Teaming with Verizon would mean the GSM-only status of the iPhone would have to go, and Apple would have to to produce a CDMA version, too. Such a move could increase Apple's costs since it would have to build two version of the iPhone, but it could also put the company in a better position to steal more market share from smartphone competitors such as RIM, Palm and Motorola that already offer GMS and CDMA-based models.

If Apple does strike deals with other cell carriers, it will likely impose requirements like it did with AT&T. Namely, carriers would be prohibited from co-branding the iPhone, they wouldn't be able to add their own start screen, users would get unlimited data plans, and revenue sharing on content downloads would be off the table.

Rumors have already surfaced that Apple and Verizon are negotiating an iPhone deal, but neither company is confirming that talks are underway. AT&T, however, has openly said that it is working to extend its exclusive iPhone deal beyond 2010.

With multiple cell carriers clamoring for the handheld, Apple stands to be the big winner, and customers may soon have more choices when they buy an iPhone.

4 comments from the community.

You can post your own below.

Lee Dronick said:

“Apple would have to to produce a CDMA version, too”

Not being an engineer I have to ask how hard would be to have a phone that runs under both systems? Apple would only ship one phone model and the cell system is chosen when the phone is activated. You could also switch carriers and keep your phone.

   Quote

FlipFriddle said:

Message to Verizon: you have my money if you pick up the iPhone; I will switch the phones the day it’s announced (caveat: as long as a data plan isn’t mandatory).

   Quote

Lee Dronick said:

“Message to Verizon: you have my money if you pick up the iPhone; I will switch the phones the day itís announced (caveat: as long as a data plan isnít mandatory).”

Or perhaps a better deal on the phone, SMS, and data combination.

   Quote

daemon said:

The iPAQ has had the capability to run on both CDMA and GSM networks since 2005, but who wants to spend $1000 on a phone?

   Quote

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