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

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik