I think AT&T is in real trouble here. They couldn’t keep up with the demand and customer satisfaction with their network shows (Consumer Reports finds that they have the worst ratings among the national carriers). The rollout of iPhones was a boon to AT&T bottom line but they ran into network issues in major cities like NY where demand stressed their network. It couldn’t keep up with demand. It still can’t.

Verizon instead got a wider range of phones and customers stuck with them because while the phones didn’t have the cache of the iPhone, it was more widely available.

That’s going to count for a whole lot more going forward as users who didn’t switch to AT&T for the iPhone will be able to get the iPhones going forward. It may drive smartphone prices down further. It may also finally relieve some of the pressure on AT&T networks, and enable the network to improve its network connectivity.