Davenport & Company Drake Johnstone has issued a note to its clients that if and when Apple launches a smartphone verizon iphone 4g that runs of Verizon network, AT&T might lose upto 40% or 6 million of its subscribers to Verizon.
Factors that might act as a deterrant against a complete migration are:
Ralph de la Vega, CEO of AT&T has told an audience at a J.P. Morgan event last week that 80% of his company’s customers are on family talk or business discount plans which are very difficult to decode and also migrate.
AT&T is raising the termination fees from June 1f from $ 75 to $ 325…..this is a penalty that is reduced by $10 every month during the two year tenure. This termination fees is lower than Verizon’s $350 termination fees.
The company has beefed up its network and other technology areas so that the calls are not dropped or the downloads are not so sluggish. But it is expected that Verizon will launch the iPhone in 2011 and hence AT&T has very little time to get its house in order.
Related search: Verizon iPhone Release Date