iPhone 5 release, the risk to carriers

By Alan Ng - Mar 21, 2011

Following on from the huge announcement that AT&T has plans to buy T-Mobile USA for $39 billion from Deutsche Telekom, we wanted to talk about a bit on the potential impact it has on other carriers. Verizon will probably be able to cope with the move, but what about Sprint? This is a definite shock as we build towards the iPhone 5 release.

We’ve picked out a recent article over at Apple Insider which includes some very interesting details about how T-Mobile admitted that profits were down for their American market specifically due to the fact that they couldn’t offer the Apple iPhone to their customers.

With that in mind, it does make you wonder whether that had a large impact on the decision to join forces with AT&T, a carrier which has been offering the iPhone ever since Apple first launched it. We previously mentioned that the move now essentially changes the smartphone industry to a three horse race in the US, leaving Sprint execs scratching their heads as to what to do next to combat this problem.

It does now seem that Sprint has an uphill task to counter this move by AT&T. If contending with Verizon wasn’t enough, they now have to consider a joint venture between AT&T and T-Mobile – with no iPhone either.

The iPhone 4 was a key factor in terms of sales for AT&T and now Verizon, and Sprint and T-Mobile knew it. T-Mobile may have made the correct business decision in joining AT&T, but where does that leave Sprint?

Let us know your thoughts on this, particularly if you’re a Sprint or T-Mobile customer.

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