AT&T has had exclusive deals to carry certain handsets, most notably the iPhone. While many have speculated that exclusivity could be at an end, a filing with the SEC indicated they didn’t expect any end to these exclusive deals to hurt their bottom line.
“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,” said AT&T in the filing with regulators.
The company explained this by adding that 80 percent of its customers are under a business or family contract and aren’t likely to switch over, and they claim they carry a wide variety of phones, making one sort of phone less important. “Such arrangements may not provide a competitive advantage over time, as the industry continues to introduce new devices and services,” said AT&T of exclusive deals.
Source: The Wall Street Journal
