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AT&T Appears To Be Preparing for iPhone Competition

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With Apple and AT&T experiencing so many growing pains, their relationship is getting more scrutiny these days than those of jilted Oscar-winning actresses or philandering golf pros. And with Apple's iPad launching Saturday, some analysts wonder if the 3G-capable version of the device will further strain a struggling network on which the carrier has spent billions to increase capacity.

Finally, with a new version of the iPhone likely just months away, AT&T will soon learn the fate of its exclusive U.S. contract with Apple.

Apple's faith in AT&T seemed reinforced in January when it named the carrier as its exclusive partner for 3G iPad coverage. AT&T CEO Randall Stephenson recently downplayed that connection, however, by saying at a tech conference that the iPad is likely to be mostly a Wi-Fi-driven device that won't take much of a toll on AT&T's 3G network.

No Monthly Contract

"I think both parties will make sure the network is optimized for the device before launch," said Michael Gartenberg, a partner at the consulting firm Altimeter Group. "Given that it's not a monthly contract device, that will also help alleviate the load. Apple and AT&T have been very close since [the iPad] launch. In fact, Apple has gone a long way defending AT&T as a partner, and it would appear that the relationship is quite solid from both sides."

The Wall Street Journal on Wednesday reported unnamed sources briefed by Verizon Wireless as saying Apple is working on a CDMA-compatible iPhone, which could realize a dream for many to have Apple's hardware running on top-carrier Verizon's network. A recent poll has shown that iPhone users would switch. CDMA is also used by Sprint Nextel.

According to various reports, a 4G iPhone will debut as soon as June, still made by Hon Hai Precision Industry, with the CDMA version...
Posted: 2010-04-02 12:16:59