John Paczkowski

Recent Posts by John Paczkowski

AT&T Not Worried About Verizon iPhone

The question of just what AT&T will do when it loses iPhone exclusivity is a difficult one to escape these days given persistent rumors that the carrier’s deal with Apple is nearing expiration. By some estimates, nearly a third of AT&T’s post-paid customers are sticking with the company largely because it is Apple’s (AAPL) only iPhone carrier in the U.S.

Does AT&T’s leadership worry that it will face slowing growth and worse, defections, if rumors we’ve been hearing of a Verizon iPhone pan out? Not really.

According to AT&T Wireless CEO Ralph de la Vega, the end of AT&T’s iPhone exclusivity deal doesn’t portend a mass subscriber exodus because switching to a new carrier is simply too hard. Evidently, many AT&T customers are tied to family-talk plans or business-discount plans, which makes switching to a new carrier a difficult proposition.

They’re “sticky” plans, said de la Vega. And he’s got a point. Convincing an employer to switch to a new carrier or migrating a handful of family-plan phones from, say, AT&T (T) to Verizon (VZ), does seem a bit daunting.

Will there be some AT&T subscribers who bolt to the next carrier to offer the iPhone? Certainly. But they may not be nearly as large in number as you might think, particularly if AT&T continues to improve its network and remove incentives for leaving.

Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

Latest Video

View all videos »

Search »

The problem with the Billionaire Savior phase of the newspaper collapse has always been that billionaires don’t tend to like the kind of authority-questioning journalism that upsets the status quo.

— Ryan Chittum, writing in the Columbia Journalism Review about the promise of Pierre Omidyar’s new media venture with Glenn Greenwald