As Android sales continue to grow the pressure on Apple to find one or more alternative carriers to AT&T builds.  Since AT&T filled a SEC10-Q which noted that they would not have an exclusive hold on certain handsets the speculation regarding iPhone expanding its horizons has grown.  Kaufman Bro.'s analyst Shaw Wu has stated his belief that Apple wants to expand through other U.S. Wireless network operator(s).  From our checks with industry and supply chain sources and a recent SEC 10-Q filing by AT&T mentioning that exclusivity with 'a number of attractive handsets' could end, we have conviction that the iPhone could likely finally be at another carrier besides AT&T here in the U.S. in 2011 and potentially at Verizon in 2011 or 2012... We believe the argument for AAPL to pursue Verizon sooner than later is to address the growing presence of Android. What better way to do that than where Android has seen the majority of its success?" Speculation has includes not only Verizon, but also possibly T-Mobile or Sprint.

Since AT&T (and T-Mobile) have GSM networks, Apple will have a more difficult technical transition moving the iPhone to Verizon or Sprint which have CDMA networks.  Verizon is the very attractive carrier for Apple with its 93 U.S. subscribers compared with AT&T’s 90 million subscribers.    In contrast Sprint and T-Mobile have a much smaller subscriber base with 48 million and 34 million, respectively.  "From our understanding, the Verizon negotiations are not finalized with important details still being ironed out, including technology and economics.”   Shaw Wu added, “We think it is premature to rule out T-Mobile or Sprint (who also uses CDMA but WiMax for 4G). In addition, there is the possibility of multiple U.S. carriers being signed."

Related Links:

http://www.informationweek.com/news/hardware/handheld/showArticle.jhtml?articleID=226900071

http://www.pcworld.com/article/203928/apple_verizon_still_working_out_iphone_kinks_says_analyst.html?tk=hp_new