AT&T Could Lose 40% of iPhone Subscribers to Verizon

Should Apple make the iPhone available to rival US carrier Verizon Wireless in 2011 after the exclusivity period with AT&T, AT&T could lose 40% of its iPhone subscriber base according to one analyst. The report cites reasons such as network reliability and performance as causes for up to 6 million users switching.

However, AT&T has been working to protect itself against such losses in two ways. First, family plans may deter immediate switching as not all family members may be on the same upgrade time table, which means that a few lines under such plans would be subject to an early termination fee–add up the number of ETF lines and the cost can become prohibitive to many families. Second, the carrier has also amended its ETF policy, raising its early termination fee for smartphone subscribers from $175, pro-rated over the two-year term, to $325, also pro-rated. The change, however, is almost a 100% increase and will begin on June 1st, right before the time in which Apple has historically launched previous generation iPhones.

(via: All Things D)

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Chuong Nguyen