What will happen if AT&T loses iPhone exclusivity to Verizon? According to a new report put out by Credit Suisse, thereâ€™s going to be a mass exodus. The company polled iPhone users and found that 23 percent would ditch AT&T in a heartbeat, bumping up its turnover rate next year. And the following year, 2012â€™s new subscriptions would pretty much flatline. On the other side, Verizonâ€™s new adoption rate would grow, jumping to 4 million or so.
Here are some numbers from the report:
- 23% would move to Verizon if “given the chance”
- 3% would switch to Sprint
- 2% would jump to T-Mobile
- 63% would stick with AT&T
The interesting part of this is the speculation that once Big Red starts offering the iPhone, its cost-per-user initially would grow, and by a lot. It will eventually level out, but hereâ€™s the thing: Would Verizon absorb the extra costs until it regains equilibrium? Or is it more likely to increase its fees, either across the board or for iPhone users specifically?
If Verizon does raise its rates, it presents an interesting possibility for those who remain with AT&T â€” namely, the possibility that â€œBlueâ€ will lower theirs to compete. But thereâ€™s a counter argument: AT&T could go the other way and charge more to make up the shortfall. Although the hit may not be as large as previously predicted, losing roughly 1.4 million customers wonâ€™t be easy to swallow.
Iâ€™m crossing fingers that if this long awaited partnership actually happens, that it wonâ€™t result in jacked up prices for customers of either carrier. If it does, will it change your plans? Would you still move over to Verizon/stick with AT&T if the fees go up? Weigh in below.