J. R. Ransom's taosmultimedia.com - Analyst: AT&T Not Likely to Subsidize iPhone

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Analyst: AT&T Not Likely to Subsidize iPhone

Roger Entner, an analyst with Nielsen/IAG, thinks that it's unlikely and undesirable that Apple and AT&T would offer a subsidy on the second generation iPhone. "There's no need to upgrade the device's capabilities and lower its cost at the same time," Entner said. "AT&T Mobility first will have to see the effect that a 3G iPhone will have on its HSDPA network. Right now, that HSDPA service is robust, with only a few million laptops riding on it. Add a few million iPhone users, who are heavy users of the Internet, and it could be like shaking a skyscraper."
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