Service Providers

This may come as no surprise to iPhone owners: AT&T ranks last out of the four major service carriers when it comes to customer satisfaction. Consumer Reports surveyed 50,000 wireless subscribers in 26 cities for the annual report.

Speculation has been rampant over a Verizon Wireless iPhone, however a simpler path for Apple to expand its iPhone market would be to offer the device to T-Mobile. Doug Reid, an analyst at Thomas Weisel, sees this move as a logical step.

Apple already offers the iPhone through Germany's T-Mobile unit (T-Mobile is owned by Deutsche Telekom). The carrier has compatible wireless technology to AT&T and wouldn't require any hardware changes to the iPhone, unlike any move to Verizon Wireless.

Vodafone Australia has officially been notified by its distributor of the iPhone 3G that the 16GB model is an EOL (end of life) product. Only a few weeks' supply is left and the model will be discontinued when these are sold.

Further signs point to the impending release of a next generation iPhone, possibly by July 17th. According to sources who have contacted the company, AT&T is drawing down current iPhone model inventories and has no plans to restock.

In a move to preserve the exclusive relationship with Apple and increase iPhone sales, AT&T may be considering changes to iPhone data plan pricing with the introduction of the next generation device. A typical two-year contract would see a price decrease of $10 per month, bringing the cost back to what original iPhone users signed up for in 2007.

Market research has shown that the high monthly cost associated with iPhone contracts may steer some users away from purchasing the device. The minimum cost over the required two-year contract amounts to over $1700 not including text messaging, taxes and fees.