Credit Suisse: If VZW gets iPhone, AT&T will have mass exodus

What will happen if AT&T loses iPhone exclusivity to Verizon? According to a new report put out by Credit Suisse, there’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, 2012’s new subscriptions would pretty much flatline. On the other side, Verizon’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 here’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 – namely, the possibility that “Blue” will lower theirs to compete. But there’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 won’t be easy to swallow.

I’m crossing fingers that if this long awaited partnership actually happens, that it won’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.

Via: BoyGenius, AppleInsider, VentureBeat

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  • Joe

    If the iphone does go to big Red there is 1 place i will go and not have to worry about expnseive plans! That is Sprint 1 low price for unlimited everything!!!!

  • sj

    i really dont think that the iphone will go to verizon.. can you imagine how expensive it would be to convert a gsm line to cdma.. i still believe that the best switch will be with TMOBILE.. its simple.. all apple needs to do is to create the frequency level of tmobile.. it would bring those angry customers from atnt out of tmobile since tmobile has the fastes 4g network nationwide and affordable rate plans.. im a tmobile customer and i will be waiting for the iphone.. since THE GERMAN CEO already brought the iphone to GERMANY.. i am sure that this phone will land on the MAGENTA side instead of the big RED MONSTER…

  • Steven

    I wouldn’t switch . . . . Reasoning is because all of my friends who had verizon . . . Key words . . . (HAD) verizon always had problems and no signal in places where I did . . . By the way this is my third iPhone . . . Now they have t-mobile and sprint . . . So as a current iPhone4 (AT&T) customer I’m just saying for the record I’m very satisfied with my service and at the price . . . Yes yes I’m also under the unlimited plan still because I have been a customer for 4 years now