The long-anticipated iPhone war between AT&T and Verizon Wireless is heating up — and AT&T is looking pretty vulnerable. News reports note how AT&T’s signal is still spotty, how AT&T is getting ready for the iPhone battle by locking in millions of contracts, how AT&T is looking to Android as a backup, and on and on and on.
On the other side of the iPhone battle line, Verizon is working to overcome any early termination fees AT&T customers would have to pay to switch, offering an all-you-can-eat data plan at ultracompetitive prices, and serving up a trade-in credit for AT&T phones.
AT&T’s Hard, Rocky Place
For all the wrangling, though, neither carrier could end up winning the favor of customers long-term. Verizon may do no better than AT&T in accommodating iPhone 5 bandwidth demand. What’s clear in the immediate future is that AT&T is between a rock and a hard place, according to Rob Enderle, principal analyst at the Enderle Group.
“There are a lot of people who are really upset with AT&T, didn’t want to be on AT&T, only got there because of the iPhone, and would really prefer to be on Verizon. There’s really nothing that AT&T can do to make these people happy and stay. They can try to match plans, but these folks want off the network,” Enderle said.
“If they bleed a lot of users, AT&T is going to look like damaged goods and they could have a hard time stopping the bleeding. In other words, it’s like you’ve got a hole in the dam. Once the water starts flowing, it’s going to be really tough.”
Verizon’s Free Ride
On the other hand, Verizon can take its time. The CDMA iPhone, no matter how big a hit it is on Verizon, is still going to ramp relatively slowly into the market, Enderle…