AT&T sees little impact from loss of iPhone deal

News Wireless United States 9 AUG 2010
AT&T sees little impact from loss of iPhone deal
AT&T said it doesn't expect to suffer a "material negative impact" from the end of its exclusive arrangements to carry handsets, including its deal for Apple's iPhone. The comments came in a lengthy discussion of the value of exclusive deals in AT&T's latest quarterly filing with the Securities and Exchange Commission, the Wall Street Journal reported. "We do not expect any such terminations to have a material negative impact on our wireless segment income, consolidated operating margin or our cash from operations," AT&T said in the filing. AT&T has held exclusive rights to cary the iPhone in the US since it was introduced in 2007. Recent media reports have suggested its main rival Verizon is close to securing a deal to offer a CDMA version of the iPhone. Explaining the lack of impact on its business, AT&T said more than 80 percent of its contract customers are on family or business plans that are less likely to see turnover. The company also said it now carries a range of smartphones, reducing its dependence on any particular one, and said new devices continue to roll out in the fast-changing industry.

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