There's a lot of talk about what the iPhone on Verizon means for the overall industry and for Verizon in general. Most notably, most pundits are discussing how this will impact Android device sales, and what this will mean for the Verizon owned brand of Android - DROID.
What I want to zero in on today right before the announcement is something slightly different: the AT&T factor.
It's well known that the cellphone companies are in a limited growth market. There are only so many people in the US that are eligible for phones, and once they have one, they aren't generally buying another for some time. That's why it's cutthroat between carriers for customer acquisition. That's also why the carriers try so hard to add features, markets, services, etc. They need to justify company and stock growth.
As an AT&T iPhone user for several years, I can say that my happiness has come exclusively from using my Apple product; that is I attribute all of my customer satisfaction to Apple, and not AT&T. Moreover, I am highly unsatisfied with AT&T service, as are many, many others. If that fact is true, and there are many out there like me, jumping ship to Verizon is a very real possibility. Yes there is a $375 cancellation fee, but I can sell my iPhone 4 on eBay for roughly $450-550, then pay off the fee and still have some to help with the cost of the new phone. If this catches on, and the early data shows potentially large segment of the AT&T [iPhone] customer base leaving for Verizon, the boon for Verizon in general and their stock specifically will be significant in my opinion [even though some have downgraded the stock saying it already rose on the rumors] as it will become apparent that they have found what all carriers consider the Holy Grail: something to make customers leave their carrier for another.
Only time will tell. The announcement arrives in roughly 45 minutes...
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