Verizon Wireless' deal for the Apple iPhone, expected to be announced
Tuesday, probably includes an exclusivity provision barring competing
wireless providers other than AT&T -- such as Cox Communications,
Sprint and T-Mobile -- from landing the coveted device for the rest of
2011, according to industry analysts.
In a survey of 85 investors
released last week, Morgan Stanley found that 75% said they expected
AT&T and Verizon Wireless to remain the sole carriers for the iPhone
this year. AT&T has been the exclusive provider of Apple's iPhone
since its initial June 2007 launch.
Meanwhile, 57% expect AT&T
to post one or two quarters of negative postpaid adds in 2011 because
of its loss of iPhone exclusivity but be positive for the year, and 85%
of investors expect the arrival of the iPhone to Verizon to cut into
annual EBITDA margins by at least 100 basis points, according to the
Morgan Stanley report.
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