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02 Jun 08

The real nature of Cingular's iPhone gamble - Computerworld Blogs

  • But it's one thing to try to muscle customers; it's another to try to muscle big guys like Verizon and Cingular, which are big, cash-rich, hard-nosed operators. As I mentioned in a previous blog, Apple's demands were so significant that Cingular's board had to approve the deal, something that's highly unlikely to occur when any other phone is adopted by the carrier.


    Clearly Cingular is trying to buy market share with iPhone -- it's paying big-time to grab customers away from Verizon Wireless, Sprint and other carriers. In the cellular business, the cost of acquiring customers is a key metric used to determine a company's financial success. Expect Cingular's acquisition costs to spike after iPhone is released.

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